1143155--3/30/2009--HAMPTON_ROADS_BANKSHARES

related topics

{loan, real, estate}

{condition, economic, financial}

{competitive, industry, competition}

{regulation, change, law}

{acquisition, growth, future}

{loss, insurance, financial}

{stock, price, operating}

{provision, law, control}

{stock, price, share}

{personnel, key, retain}

{system, service, information}

{operation, natural, condition}

{capital, credit, financial}

Difficult market conditions have adversely affected our industry. Current levels of market volatility are unprecedented. The soundness of other financial institutions could adversely affect us. There can be no assurance that recently enacted legislation will stabilize the U.S. financial system. We may incur losses if we are unable to successfully manage interest rate risk. Because of our business of lending for construction and land development, a downturn in real estate markets could increase our credit losses and negatively affect our financial results. We depend on the services of key personnel. Our future success is dependent on our ability to compete effectively in the highly competitive banking industry. If our allowance for loan losses becomes inadequate, our results of operations may be adversely affected. We may not be able to successfully manage our growth, which may adversely affect our results of operations and financial condition. We could sustain losses if our asset quality declines. Our recent results may not be indicative of our future results. We serve a limited market area, and an economic downturn in one of our market areas could adversely affect our business. If the value of real estate in our core market areas were to decline materially, a significant portion of our loan portfolio could become under-collateralized, which could have a material adverse effect on us. A significant part of GFH s loan portfolio is unseasoned. Our operations and customers might be affected by the occurrence of a natural disaster or other catastrophic event in our market area. The decline in the fair market value of various investment securities available-for-sale could result in future impairment losses. Changes in interest rates could negatively impact our results of operations. Governmental and regulatory changes may adversely affect our cost structure. We face a variety of threats from technology based frauds and scams. Banking regulators have broad enforcement power, but regulations are meant to protect depositors, and not investors. Trading in our common stock has been sporadic and volume has been light. As a result, shareholders may not be able to quickly and easily sell their common stock. Virginia law and the provisions of our articles of incorporation and bylaws could deter or prevent takeover attempts by a potential purchaser of our common stock that would be willing to pay you a premium for your shares of our common stock. Our directors and officers have significant voting power. We may fail to realize all of the anticipated benefits of the mergers with SFC and GFH.

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1143155--3/30/2009--HAMPTON_ROADS_BANKSHARES_INC