##### Table of Contents

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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FORM 10-Q



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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the
quarterly period ended September 30, 2007

Commission File Number: 001-32968



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HAMPTON ROADS BANKSHARES, INC.

(Exact name of registrant as specified in its charter)



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|                                                              |  |                                    
|------------------------------------------------------------- |  | -----------------------------------
|Virginia                                                      |  | 54-2053718                         
|(State or other jurisdiction ofincorporation or organization) |  | (I.R.S. EmployerIdentification No.)



|                                                  |  |           
|------------------------------------------------- |  | ----------
|999 Waterside Drive, Suite 200, Norfolk, Virginia |  | 23510     
|(Address of principal executive offices)          |  | (Zip Code)

(757) 217-1000

(Registrants telephone number, including area code)



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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No ̈

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2
of the Exchange Act. (Check one):

Large accelerated filer ̈Accelerated filer  x    Non-accelerated filer ̈

Indicate by check mark whether the registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act).    Yes ̈No  x

Indicate the number of shares outstanding of each of the issuers classes of common stock as of October 30, 2007.



|                               |  |                  
|------------------------------ |  | -----------------
|Common Stock, $0.625 Par Value |  | 10,268,867 Shares



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##### Table of Contents

HAMPTON ROADS BANKSHARES, INC.

TABLE OF CONTENTS



|                               |  |                                                                                                |  |                                                            |  |     
|------------------------------ |  | ---------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------- |  | ----
|                               |  |                                                                                                |  |                                                            |  | Page
|PART I  FINANCIAL INFORMATION |  |                                                                                               
|                               |  |                                                                                               
|                               |  | ITEM  1 FINANCIAL STATEMENTS                                                                  |  |                                                           
|                               |  |                                                                                                | 
|                               |  |                                                                                                |  | Consolidated Balance Sheets                                |  | 3   
|                               |  |                                                                                                | 
|                               |  |                                                                                                |  | September 30, 2007                                         |  |     
|                               |  |                                                                                                | 
|                               |  |                                                                                                |  | December 31, 2006                                          |  |     
|                               |  |                                                                                                | 
|                               |  |                                                                                                |  | Consolidated Statements of Income                          |  | 4   
|                               |  |                                                                                                | 
|                               |  |                                                                                                |  | Three months ended September 30, 2007 and 2006             |  |     
|                               |  |                                                                                                | 
|                               |  |                                                                                                |  | Nine months ended September 30, 2007 and 2006              |  |     
|                               |  |                                                                                                | 
|                               |  |                                                                                                |  | Consolidated Statements of Changes in Shareholders Equity |  | 5   
|                               |  |                                                                                                | 
|                               |  |                                                                                                |  | Nine months ended September 30, 2007                       |  |     
|                               |  |                                                                                                | 
|                               |  |                                                                                                |  | Year ended December 31, 2006                               |  |     
|                               |  |                                                                                                | 
|                               |  |                                                                                                |  | Consolidated Statements of Cash Flows                      |  | 6   
|                               |  |                                                                                                | 
|                               |  |                                                                                                |  | Nine months ended September 30, 2007 and 2006              |  |     
|                               |  |                                                                                                | 
|                               |  |                                                                                                |  | Notes to Consolidated Financial Statements                 |  | 7   
|                               |  |                                                                                               
|                               |  | ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |  | 10                                                        
|                               |  |                                                                                               
|                               |  | ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                            |  | 15                                                        
|                               |  |                                                                                               
|                               |  | ITEM 4  CONTROLS AND PROCEDURES                                                               |  | 16                                                        
|                               | 
|PART II  OTHER INFORMATION    |  |                                                                                               
|                               |  |                                                                                               
|                               |  | ITEM 1  LEGAL PROCEEDINGS                                                                     |  | 16                                                        
|                               |  |                                                                                               
|                               |  | ITEM 1A  RISK FACTORS                                                                         |  | 16                                                        
|                               |  |                                                                                               
|                               |  | ITEM 2  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                           |  | 16                                                        
|                               |  |                                                                                               
|                               |  | ITEM 3  DEFAULTS UPON SENIOR SECURITIES                                                       |  | 17                                                        
|                               |  |                                                                                               
|                               |  | ITEM 4  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                   |  | 17                                                        
|                               |  |                                                                                               
|                               |  | ITEM 5  OTHER INFORMATION                                                                     |  | 17                                                        
|                               |  |                                                                                               
|                               |  | ITEM 6  EXHIBITS                                                                              |  | 17                                                        
|                               | 
|SIGNATURES                     |  | 17                                                                                            



2



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##### Table of Contents

PART I  FINANCIAL INFORMATION

ITEM 1  FINANCIAL STATEMENTS

HAMPTON ROADS BANKSHARES, INC.

Consolidated Balance Sheets



|                                                                                                                                             |  |                               |             |   |                   |   |             |  
|-------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------- | ----------- | - | ----------------- | - | ----------- | -
|                                                                                                                                             |  | (Unaudited)September 30, 2007 |             |   | December 31, 2006 |  
|Assets:                                                                                                                                      |  |                               |             |   |                   |   |             |  
|Cash and due from banks                                                                                                                      |  | $                             | 17,493,428  |   |                   | $ | 17,112,616  |  
|Overnight funds sold                                                                                                                         |  |                               | 7,105,488   |   |                   |   | 9,524,445   |  
|Interest-bearing deposits in other banks                                                                                                     |  |                               | 803,825     |   |                   |   | 161,490     |  
|                                                                                                                                             |  |                               |             |   |                   |   |             |  
|Total cash and cash equivalents                                                                                                              |  |                               | 25,402,741  |   |                   |   | 26,798,551  |  
|Investment securities available-for-sale, at fair value                                                                                      |  |                               | 46,080,171  |   |                   |   | 55,569,440  |  
|Federal Home Loan Bank stock                                                                                                                 |  |                               | 3,240,000   |   |                   |   | 2,597,900   |  
|Federal Reserve Bank stock                                                                                                                   |  |                               | 1,373,300   |   |                   |   | 1,377,350   |  
|                                                                                                                                             |  |                               |             |   |                   |   |             |  
|Total investments                                                                                                                            |  |                               | 50,693,471  |   |                   |   | 59,544,690  |  
|Loans                                                                                                                                        |  |                               | 453,143,579 |   |                   |   | 375,044,161 |  
|Allowance for loan losses                                                                                                                    |  |                               | (4,647,266  | ) |                   |   | (3,910,943  | )
|                                                                                                                                             |  |                               |             |   |                   |   |             |  
|Net loans                                                                                                                                    |  |                               | 448,496,313 |   |                   |   | 371,133,218 |  
|Premises and equipment                                                                                                                       |  |                               | 11,818,277  |   |                   |   | 12,183,884  |  
|Interest receivable                                                                                                                          |  |                               | 2,550,124   |   |                   |   | 2,281,945   |  
|Other real estate owned                                                                                                                      |  |                               | 69,552      |   |                   |   |            |  
|Deferred tax asset                                                                                                                           |  |                               | 2,785,934   |   |                   |   | 2,209,117   |  
|Other assets                                                                                                                                 |  |                               | 2,408,858   |   |                   |   | 2,148,063   |  
|                                                                                                                                             |  |                               |             |   |                   |   |             |  
|Total assets                                                                                                                                 |  | $                             | 544,225,270 |   |                   | $ | 476,299,468 |  
|                                                                                                                                             |  |                               |             |   |                   |   |             |  
|                                                                                                                                             |  |                              
|Liabilities and Shareholders Equity:                                                                                                        |  |                               |             |   |                   |   |             |  
|Deposits:                                                                                                                                    |  |                               |             |   |                   |   |             |  
|Noninterest bearing demand                                                                                                                   |  | $                             | 99,571,685  |   |                   | $ | 97,559,421  |  
|Interest bearing:                                                                                                                            |  |                               |             |   |                   |   |             |  
|Demand                                                                                                                                       |  |                               | 40,847,485  |   |                   |   | 42,486,451  |  
|Savings                                                                                                                                      |  |                               | 89,243,271  |   |                   |   | 73,830,518  |  
|Time deposits:                                                                                                                               |  |                               |             |   |                   |   |             |  
|Less than $ 100,000                                                                                                                          |  |                               | 93,880,006  |   |                   |   | 76,756,540  |  
|$100,000 or more                                                                                                                             |  |                               | 87,828,111  |   |                   |   | 72,628,399  |  
|                                                                                                                                             |  |                               |             |   |                   |   |             |  
|Total deposits                                                                                                                               |  |                               | 411,370,558 |   |                   |   | 363,261,329 |  
|Federal Home Loan Bank borrowings                                                                                                            |  |                               | 53,000,000  |   |                   |   | 38,000,000  |  
|Interest payable                                                                                                                             |  |                               | 1,907,079   |   |                   |   | 1,472,889   |  
|Other liabilities                                                                                                                            |  |                               | 5,452,824   |   |                   |   | 3,402,707   |  
|                                                                                                                                             |  |                               |             |   |                   |   |             |  
|Total liabilities                                                                                                                            |  |                               | 471,730,461 |   |                   |   | 406,136,925 |  
|                                                                                                                                             |  |                               |             |   |                   |   |             |  
|Shareholders equity:                                                                                                                        |  |                               |             |   |                   |   |             |  
|Preferred stock, no par value. Authorized 1,000,000 shares; none issued and outstanding                                                      |  |                               |            |   |                   |   |            |  
|Common stock, $0.625 par value. Authorized 40,000,000 shares; issued and outstanding 10,268,867 shares in 2007 and 10,251,336 shares in 2006 |  |                               | 6,418,042   |   |                   |   | 6,407,085   |  
|Capital surplus                                                                                                                              |  |                               | 42,334,434  |   |                   |   | 42,105,666  |  
|Retained earnings                                                                                                                            |  |                               | 23,903,476  |   |                   |   | 22,091,191  |  
|Accumulated other comprehensive loss, net of tax                                                                                             |  |                               | (161,143    | ) |                   |   | (441,399    | )
|                                                                                                                                             |  |                               |             |   |                   |   |             |  
|Total shareholders equity                                                                                                                   |  |                               | 72,494,809  |   |                   |   | 70,162,543  |  
|                                                                                                                                             |  |                               |             |   |                   |   |             |  
|Total liabilities and shareholders equity                                                                                                   |  | $                             | 544,225,270 |   |                   | $ | 476,299,468 |  
|                                                                                                                                             |  |                               |             |   |                   |   |             |  

See accompanying notes to the consolidated financial statements (unaudited).



3



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##### Table of Contents

HAMPTON ROADS BANKSHARES, INC.

Consolidated Statements of Income (Unaudited)



|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|----------------------------------------------------- |  | ------------------ | ---------- | ------------------ | - | ------------------ |  | ------------------ | ---------- |  | - | ----------
|                                                      |  | Three Months Ended |            | Nine Months Ended 
|                                                      |  | September 30, 2007 |            | September 30, 2006 |   | September 30, 2007 |  | September 30, 2006
|Interest Income:                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Loans, including fees                                 |  | $                  | 9,279,311  |                    | $ | 7,098,883          |  | $                  | 26,151,149 |  | $ | 19,232,974
|Investment securities                                 |  |                    | 570,540    |                    |   | 645,302            |  |                    | 1,782,797  |  |   | 2,089,186 
|Overnight funds sold                                  |  |                    | 4,715      |                    |   | 80,835             |  |                    | 33,771     |  |   | 142,122   
|Interest-bearing deposits in other banks              |  |                    | 86,488     |                    |   | 81,879             |  |                    | 235,980    |  |   | 108,458   
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Total interest income                                 |  |                    | 9,941,054  |                    |   | 7,906,899          |  |                    | 28,203,697 |  |   | 21,572,740
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|                                                      |  |                    |            |                   
|Interest Expense:                                     |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Deposits:                                             |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Demand                                                |  |                    | 174,277    |                    |   | 193,981            |  |                    | 511,173    |  |   | 344,407   
|Savings                                               |  |                    | 753,221    |                    |   | 567,570            |  |                    | 2,118,228  |  |   | 1,547,165 
|Time deposits:                                        |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Less than $100,000                                    |  |                    | 1,061,393  |                    |   | 677,200            |  |                    | 2,903,280  |  |   | 1,803,201 
|$100,000 or more                                      |  |                    | 1,029,512  |                    |   | 703,669            |  |                    | 2,936,763  |  |   | 1,450,714 
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Interest on deposits                                  |  |                    | 3,018,403  |                    |   | 2,142,420          |  |                    | 8,469,444  |  |   | 5,145,487 
|Federal Home Loan Bank borrowings                     |  |                    | 614,591    |                    |   | 412,235            |  |                    | 1,640,220  |  |   | 965,005   
|Overnight funds purchased                             |  |                    | 2,377      |                    |   | 6,158              |  |                    | 14,745     |  |   | 116,602   
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Total interest expense                                |  |                    | 3,635,371  |                    |   | 2,560,813          |  |                    | 10,124,409 |  |   | 6,227,094 
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Net interest income                                   |  |                    | 6,305,683  |                    |   | 5,346,086          |  |                    | 18,079,288 |  |   | 15,345,646
|                                                      |  |                    |            |                   
|Provision for loan losses                             |  |                    | 270,000    |                    |   | 90,000             |  |                    | 738,000    |  |   | 90,000    
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Net interest income after provision for loan losses   |  |                    | 6,035,683  |                    |   | 5,256,086          |  |                    | 17,341,288 |  |   | 15,255,646
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|                                                      |  |                    |            |                   
|Noninterest Income:                                   |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Service charges on deposit accounts                   |  |                    | 502,041    |                    |   | 490,093            |  |                    | 1,486,385  |  |   | 1,379,666 
|Other service charges and fees                        |  |                    | 322,004    |                    |   | 363,715            |  |                    | 1,091,252  |  |   | 1,188,197 
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Total noninterest income                              |  |                    | 824,045    |                    |   | 853,808            |  |                    | 2,577,637  |  |   | 2,567,863 
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|                                                      |  |                    |            |                   
|Noninterest Expense:                                  |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Salaries and employee benefits                        |  |                    | 2,546,738  |                    |   | 2,365,939          |  |                    | 7,692,997  |  |   | 6,779,556 
|Occupancy                                             |  |                    | 419,954    |                    |   | 428,855            |  |                    | 1,234,571  |  |   | 1,252,975 
|Data processing                                       |  |                    | 143,222    |                    |   | 152,567            |  |                    | 454,068    |  |   | 446,446   
|Other                                                 |  |                    | 943,107    |                    |   | 853,092            |  |                    | 2,788,254  |  |   | 2,636,400 
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Total noninterest expense                             |  |                    | 4,053,021  |                    |   | 3,800,453          |  |                    | 12,169,890 |  |   | 11,115,377
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Income before provision for income taxes              |  |                    | 2,806,707  |                    |   | 2,309,441          |  |                    | 7,749,035  |  |   | 6,708,132 
|Provision for income taxes                            |  |                    | 970,214    |                    |   | 789,886            |  |                    | 2,651,529  |  |   | 2,294,566 
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Net income                                            |  | $                  | 1,836,493  |                    | $ | 1,519,555          |  | $                  | 5,097,506  |  | $ | 4,413,566 
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|                                                      |  |                    |            |                   
|Earnings Per Share:                                   |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Basic earnings per share                              |  | $                  | 0.18       |                    | $ | 0.16               |  | $                  | 0.50       |  | $ | 0.51      
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Diluted earnings per share                            |  | $                  | 0.18       |                    | $ | 0.16               |  | $                  | 0.49       |  | $ | 0.49      
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Basic weighted average shares outstanding             |  |                    | 10,236,941 |                    |   | 9,605,972          |  |                    | 10,229,282 |  |   | 8,736,839 
|Effect of dilutive stock options and non-vested stock |  |                    | 221,456    |                    |   | 180,095            |  |                    | 210,179    |  |   | 189,541   
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           
|Diluted weighted average shares outstanding           |  |                    | 10,458,397 |                    |   | 9,786,067          |  |                    | 10,439,461 |  |   | 8,926,380 
|                                                      |  |                    |            |                    |   |                    |  |                    |            |  |   |           

See accompanying notes to the consolidated financial statements (unaudited).



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##### Table of Contents

HAMPTON ROADS BANKSHARES, INC.

Consolidated Statements of Changes in Shareholders Equity

Nine months ended September 30, 2007 and year ended December 31, 2006



|                                                                                            |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   |            |  
|------------------------------------------------------------------------------------------- |  | ------------ | - |  | -------------- | --------- | - | ----------------- | - | ---------- | ------------------------------------------------ |  | - | ---------- | - |  | - | -------- | - |  | - | ---------- | -
|                                                                                            |  | Common Stock |   |  | CapitalSurplus |           |   | Retained Earnings |   |            | Accumulated Other Comprehensive Loss, Net of Tax |  |   | Total      |  
|                                                                                            |  | Shares       |   |  | Amount         |           |   |                   |   |           
|Balance at December 31, 2005                                                                |  | 8,242,822    |   |  | $              | 5,151,764 |   |                   | $ | 23,852,040 |                                                  |  | $ | 20,770,448 |   |  | $ | (643,723 | ) |  | $ | 49,130,529 |  
|                                                                                            |  |              |   |  |                |          
|Comprehensive income:                                                                       |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   |            |  
|Net income                                                                                  |  |             |   |  |                |          |   |                   |   |           |                                                  |  |   | 6,035,539  |   |  |   |         |   |  |   | 6,035,539  |  
|Change in unrealized gain (loss) on securities available-for-sale, net of taxes of $104,228 |  |             |   |  |                |          |   |                   |   |           |                                                  |  |   |           |   |  |   | 202,324  |   |  |   | 202,324    |  
|                                                                                            |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   |            |  
|Total comprehensive income                                                                  |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   | 6,237,863  |  
|Shares issued related to:                                                                   |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   |            |  
|401(k) plan                                                                                 |  | 11,333       |   |  |                | 7,083     |   |                   |   | 115,312    |                                                  |  |   |           |   |  |   |         |   |  |   | 122,395    |  
|Advisory board fees                                                                         |  | 2,332        |   |  |                | 1,457     |   |                   |   | 23,843     |                                                  |  |   |           |   |  |   |         |   |  |   | 25,300     |  
|Exercise of stock options                                                                   |  | 277,041      |   |  |                | 173,151   |   |                   |   | 1,432,735  |                                                  |  |   |           |   |  |   |         |   |  |   | 1,605,886  |  
|Dividend reinvestment                                                                       |  | 229,090      |   |  |                | 143,181   |   |                   |   | 2,512,766  |                                                  |  |   |           |   |  |   |         |   |  |   | 2,655,947  |  
|Stock-based compensation expense                                                            |  | 20,131       |   |  |                | 12,582    |   |                   |   | 167,229    |                                                  |  |   |           |   |  |   |         |   |  |   | 179,811    |  
|Stock offering, net of costs of $1,109,824                                                  |  | 1,849,200    |   |  |                | 1,155,750 |   |                   |   | 17,890,706 |                                                  |  |   |           |   |  |   |         |   |  |   | 19,046,456 |  
|Common stock repurchased                                                                    |  | (380,613     | ) |  |                | (237,883  | ) |                   |   | (4,035,983 | )                                                |  |   |           |   |  |   |         |   |  |   | (4,273,866 | )
|Tax benefit of stock option exercises                                                       |  |             |   |  |                |          |   |                   |   | 147,018    |                                                  |  |   |           |   |  |   |         |   |  |   | 147,018    |  
|Cash dividends ($0.50 per share)                                                            |  |             |   |  |                |          |   |                   |   |           |                                                  |  |   | (4,714,796 | ) |  |   |         |   |  |   | (4,714,796 | )
|                                                                                            |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   |            |  
|Balance at December 31, 2006                                                                |  | 10,251,336   |   |  | $              | 6,407,085 |   |                   | $ | 42,105,666 |                                                  |  | $ | 22,091,191 |   |  | $ | (441,399 | ) |  | $ | 70,162,543 |  
|                                                                                            |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   |            |  
|(Unaudited)                                                                                 |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   |            |  
|Comprehensive income:                                                                       |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   |            |  
|Net income                                                                                  |  |             |   |  |                |          |   |                   |   |           |                                                  |  |   | 5,097,506  |   |  |   |         |   |  |   | 5,097,506  |  
|Change in unrealized gain (loss) on securities available-for-sale, net of taxes of $144,374 |  |             |   |  |                |          |   |                   |   |           |                                                  |  |   |           |   |  |   | 280,256  |   |  |   | 280,256    |  
|                                                                                            |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   |            |  
|Total comprehensive income                                                                  |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   | 5,377,762  |  
|Shares issued related to:                                                                   |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   |            |  
|401(k) plan                                                                                 |  | 11,020       |   |  |                | 6,888     |   |                   |   | 130,311    |                                                  |  |   |           |   |  |   |         |   |  |   | 137,199    |  
|Executive savings plan                                                                      |  | 11,686       |   |  |                | 7,304     |   |                   |   | 138,187    |                                                  |  |   |           |   |  |   |         |   |  |   | 145,491    |  
|Advisory board fees                                                                         |  | 1,531        |   |  |                | 957       |   |                   |   | 18,634     |                                                  |  |   |           |   |  |   |         |   |  |   | 19,591     |  
|Exercise of stock options                                                                   |  | 47,135       |   |  |                | 29,459    |   |                   |   | 419,116    |                                                  |  |   |           |   |  |   |         |   |  |   | 448,575    |  
|Dividend reinvestment                                                                       |  | 119,763      |   |  |                | 74,852    |   |                   |   | 1,604,424  |                                                  |  |   |           |   |  |   |         |   |  |   | 1,679,276  |  
|Stock-based compensation expense                                                            |  | 10,364       |   |  |                | 6,477     |   |                   |   | 286,714    |                                                  |  |   |           |   |  |   |         |   |  |   | 293,191    |  
|Common stock repurchased                                                                    |  | (183,968     | ) |  |                | (114,980  | ) |                   |   | (2,390,599 | )                                                |  |   |           |   |  |   |         |   |  |   | (2,505,579 | )
|Tax benefit of stock option exercises                                                       |  |             |   |  |                |          |   |                   |   | 21,981     |                                                  |  |   |           |   |  |   |         |   |  |   | 21,981     |  
|Cash dividends ($0.32 per share)                                                            |  |             |   |  |                |          |   |                   |   |           |                                                  |  |   | (3,285,221 | ) |  |   |         |   |  |   | (3,285,221 | )
|                                                                                            |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   |            |  
|Balance at September 30, 2007                                                               |  | 10,268,867   |   |  | $              | 6,418,042 |   |                   | $ | 42,334,434 |                                                  |  | $ | 23,903,476 |   |  | $ | (161,143 | ) |  | $ | 72,494,809 |  
|                                                                                            |  |              |   |  |                |           |   |                   |   |            |                                                  |  |   |            |   |  |   |          |   |  |   |            |  

See accompanying notes to the consolidated financial statements (unaudited).



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HAMPTON ROADS BANKSHARES, INC.

Consolidated Statements of Cash Flows (Unaudited)



|                                                                                  |  |                    |             |   |                    |   |             |  
|--------------------------------------------------------------------------------- |  | ------------------ | ----------- | - | ------------------ | - | ----------- | -
|                                                                                  |  | Nine Months Ended  |            
|                                                                                  |  | September 30, 2007 |             |   | September 30, 2006 |  
|Operating Activities:                                                             |  |                    |             |   |                    |   |             |  
|Net income                                                                        |  | $                  | 5,097,506   |   |                    | $ | 4,413,566   |  
|Adjustments to reconcile net income to net cash provided by operating activities: |  |                    |             |   |                    |   |             |  
|Depreciation and amortization                                                     |  |                    | 664,427     |   |                    |   | 652,472     |  
|Provision for loan losses                                                         |  |                    | 738,000     |   |                    |   | 90,000      |  
|Advisory board fees                                                               |  |                    | 19,591      |   |                    |   | 25,300      |  
|Stock-based compensation expense                                                  |  |                    | 293,191     |   |                    |   | 160,030     |  
|Net amortization of premiums and accretion of discounts on investment securities  |  |                    | 1,313       |   |                    |   | 30,029      |  
|Gain on sale of premises and equipment                                            |  |                    | (531        | ) |                    |   |            |  
|Deferred income tax benefit                                                       |  |                    | (721,191    | ) |                    |   | (385,792    | )
|Changes in:                                                                       |  |                    |             |   |                    |   |             |  
|Interest receivable                                                               |  |                    | (268,179    | ) |                    |   | (269,996    | )
|Other assets                                                                      |  |                    | (260,795    | ) |                    |   | (2,126      | )
|Interest payable                                                                  |  |                    | 434,190     |   |                    |   | 470,156     |  
|Other liabilities                                                                 |  |                    | 2,050,117   |   |                    |   | 1,736,156   |  
|                                                                                  |  |                    |             |   |                    |   |             |  
|Net cash provided by operating activities                                         |  |                    | 8,047,639   |   |                    |   | 6,919,795   |  
|                                                                                  |  |                    |             |   |                    |   |             |  
|                                                                                  |  |                   
|Investing Activities:                                                             |  |                    |             |   |                    |   |             |  
|Proceeds from maturities and calls of investment securities available-for-sale    |  |                    | 11,154,693  |   |                    |   | 15,107,741  |  
|Purchase of investment securities available-for-sale                              |  |                    | (1,242,107  | ) |                    |   | (1,839,057  | )
|Proceeds from sales of Federal Home Loan Bank stock                               |  |                    | 405,000     |   |                    |   | 2,227,500   |  
|Purchase of Federal Home Loan Bank stock                                          |  |                    | (1,047,100  | ) |                    |   | (2,768,300  | )
|Proceeds from the sale of Federal Reserve Bank stock                              |  |                    | 5,150       |   |                    |   |            |  
|Purchase of Federal Reserve Bank stock                                            |  |                    | (1,100      | ) |                    |   | (722,750    | )
|Net increase in total loans                                                       |  |                    | (78,145,647 | ) |                    |   | (52,221,689 | )
|Purchase of premises and equipment                                                |  |                    | (323,289    | ) |                    |   | (744,988    | )
|                                                                                  |  |                    |             |   |                    |   |             |  
|Net cash used in investing activities                                             |  |                    | (69,194,400 | ) |                    |   | (40,961,543 | )
|                                                                                  |  |                    |             |   |                    |   |             |  
|                                                                                  |  |                   
|Financing Activities:                                                             |  |                    |             |   |                    |   |             |  
|Net increase in deposits                                                          |  |                    | 48,109,229  |   |                    |   | 19,119,904  |  
|Repayments of Federal Home Loan Bank borrowings                                   |  |                    | (8,000,000  | ) |                    |   | (2,500,000  | )
|Proceeds from Federal Home Loan Bank borrowings                                   |  |                    | 23,000,000  |   |                    |   | 10,000,000  |  
|Stock issuance costs                                                              |  |                    |            |   |                    |   | (945,211    | )
|Common stock repurchased                                                          |  |                    | (2,299,123  | ) |                    |   | (2,875,733  | )
|Issuance of shares to 401(k) plan                                                 |  |                    | 137,199     |   |                    |   | 122,395     |  
|Issuance of shares to executive savings plan                                      |  |                    | 145,491     |   |                    |   |            |  
|Issuance of shares in rights and public offering                                  |  |                    |            |   |                    |   | 19,420,530  |  
|Proceeds from exercise of stock options                                           |  |                    | 242,119     |   |                    |   | 537,864     |  
|Excess tax benefit realized from stock options exercised                          |  |                    | 21,981      |   |                    |   | 166,614     |  
|Dividends paid, net                                                               |  |                    | (1,605,945  | ) |                    |   | (1,598,262  | )
|                                                                                  |  |                    |             |   |                    |   |             |  
|Net cash provided by financing activities                                         |  |                    | 59,750,951  |   |                    |   | 41,448,101  |  
|                                                                                  |  |                    |             |   |                    |   |             |  
|Increase (decrease) in cash and cash equivalents                                  |  |                    | (1,395,810  | ) |                    |   | 7,406,353   |  
|Cash and cash equivalents at beginning of period                                  |  |                    | 26,798,551  |   |                    |   | 36,740,655  |  
|                                                                                  |  |                    |             |   |                    |   |             |  
|Cash and cash equivalents at end of period                                        |  | $                  | 25,402,741  |   |                    | $ | 44,147,008  |  
|                                                                                  |  |                    |             |   |                    |   |             |  
|                                                                                  |  |                   
|Supplemental cash flow information:                                               |  |                    |             |   |                    |   |             |  
|Cash paid during the period for interest                                          |  | $                  | 9,690,219   |   |                    | $ | 5,756,938   |  
|Cash paid during the period for income taxes                                      |  |                    | 2,935,000   |   |                    |   | 2,570,000   |  
|                                                                                  |  |                   
|Supplemental noncash information:                                                 |  |                    |             |   |                    |   |             |  
|Dividends reinvested                                                              |  | $                  | 1,679,276   |   |                    | $ | 2,109,434   |  
|Value of shares exchanged in exercise of stock options                            |  |                    | 206,455     |   |                    |   | 849,237     |  
|Accrued stock issuance costs                                                      |  |                    |            |   |                    |   | 161,834     |  
|Issuance of stock in exchange for land                                            |  |                    |            |   |                    |   | 735,750     |  
|Transfer between loans and other real estate owned                                |  |                    | 69,552      |   |                    |   |            |  
|Transfer between premises and equipment and loans                                 |  |                    | 25,000      |   |                    |   |            |  

See accompanying notes to the consolidated financial statements (unaudited).



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HAMPTON ROADS BANKSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

September 30, 2007

NOTE A  BASIS OF
PRESENTATION

Hampton Roads Bankshares, Inc., a Virginia corporation (the Company), was incorporated under the laws of the
Commonwealth of Virginia on February 28, 2001, primarily to serve as a holding company for Bank of Hampton Roads (the Bank). All significant intercompany balances and transactions have been eliminated in consolidation.

The Bank is a Virginia state-chartered commercial bank with 17 full service offices in the Hampton Roads region of southeastern Virginia, including
eight offices in the city of Chesapeake, four offices in each of the cities of Norfolk and Virginia Beach, and one office in the city of Suffolk. The Bank was organized in March 1987 and commenced operations in December 1987. The Banks
principal executive office is located at 999 Waterside Drive, Suite 200, Norfolk, VA 23510 and our telephone number is (757) 217-1000.

In January 2004, the Company formed Hampton Roads Investments, Inc., a wholly owned subsidiary, to provide securities, brokerage, and investment advisory services. It is a full service investment services firm handling all aspects of wealth
management including stocks, bonds, annuities, mutual funds and financial advice.

The accompanying unaudited consolidated financial
statements have been prepared in accordance with U. S. generally accepted accounting principles for interim financial reporting and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by
U. S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further
information, refer to the consolidated financial statements and footnotes thereto included in the Companys annual report on Form 10-K for the year ended December 31, 2006 (the 2006 Form 10-K). The results of operations for the
three and nine months ended September 30, 2007 are not necessarily indicative of the results to be expected for the full year.

NOTE B 
SHARE-BASED COMPENSATION

The Company adopted Statement of Financial Accounting Standards (SFAS) No. 123R, Share
Based Payment, on January 1, 2006, using the modified prospective method, which applies SFAS No. 123R to new awards and to the portion of existing awards that had not completely vested as of January 1, 2006. During 2007 and 2006,
the Company used the fair-value method to account for stock-based compensation and the fair value of stock options was estimated at the date of grant using a lattice option pricing model.

Stock-based compensation expense recognized in the consolidated statements of income for the nine months ended September 30, 2007 and
September 30, 2006 was $293,191 and $160,030, respectively, with a related tax benefit of $76,359 and $54,410, respectively. During the first nine months of 2007 and 2006, stock-based compensation expense was comprised of $127,570 and $13,373,
respectively, related to stock options which vested during the period, and $165,621 and $146,657, respectively, related to share awards.

The Company has granted stock options to its directors and employees under stock compensation plans that have been approved by the Companys shareholders. All outstanding options, other than the options granted on December 31,
2006, have 10-year terms and are fully vested and exercisable at the date of grant. The options granted on December 31, 2006 have 10-year terms and vest ratably over periods that range from 1 year to 5 years. A summary of the Companys
stock option activity and related information for the nine months ended September 30, 2007 is as follows:



|                              |  |                         |  |                               |       |                                     |      |                         |   |          
|----------------------------- |  | ----------------------- |  | ----------------------------- | ----- | ----------------------------------- | ---- | ----------------------- | - | ---------
|                              |  | StockOptionsOutstanding |  | WeightedAverageExercise Price |       | RemainingContractual Life(in years) |      | AggregateIntrinsicValue
|Balance at December 31, 2006  |  | 929,970                 |  | $                             | 9.19  |                                     |     |                         | $ |         
|Granted                       |  | 14,968                  |  |                               | 13.79 |                                     |     |                         |   |         
|Forfeited                     |  | 10,992                  |  |                               | 12.00 |                                     |     |                         |   |         
|Exercised                     |  | 47,135                  |  |                               | 9.52  |                                     |     |                         |   |         
|Expired                       |  | 699                     |  |                               | 11.18 |                                     |     |                         |   |         
|                              |  |                         |  |                               |       |                                     |      |                         |   |          
|Balance at September 30, 2007 |  | 886,112                 |  | $                             | 9.21  |                                     | 5.73 |                         | $ | 2,689,424
|                              |  |                         |  |                               |       |                                     |      |                         |   |          



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Option valuation models require the input of highly subjective assumptions. Because the Companys
employee stock options have characteristics significantly different from those of traded options, and because changes in the assumptions can materially affect the fair value estimate, in managements opinion, the existing models do not
necessarily provide a representative single measure of the fair value at which transactions may occur. The assumptions used to value stock options granted during the first nine months of 2007 were as follows: risk-free interest rate of 4.68%,
volatility of 18.40%, dividend yield of 3.33%, and weighted-average expected option term of 5.16 years. Expected volatility is based on historical volatility of the Companys traded shares. The expected term is calculated by the lattice option
pricing model using assumptions regarding the contractual term of the stock options, vesting periods, the exercise price to market stock price multiple experienced by the Company, and the historical employee exit rate. The stock options granted
during the first nine months of 2007 were the result of reload features on stock options that had a remaining weighted-average contractual life of 5.68 years.

The weighted-average grant-date fair value of stock options granted during the nine months ended September 30, 2007 and 2006 was $2.13 and $1.32, respectively. The total intrinsic value at grant date of stock
options exercised during the nine month periods ended September 30, 2007 and 2006 was $50,835 and $340,038, respectively. Cash received from stock option exercises for the nine month periods ended September 30, 2007 and 2006 was $242,119
and $537,864, respectively. The excess tax benefit realized for the tax deductions from option exercises totaled $21,981 and $166,614, respectively, for the nine month periods ended September 30, 2007 and 2006. The Company may issue new shares
to satisfy stock option grants and as of September 30, 2007 there were 2,308,984 shares available under the existing stock incentive plan that was approved by shareholders. However, shares may be repurchased in open market or privately
negotiated transactions under certain circumstances. As of September 30, 2007, there was $329,070 of unrecognized compensation cost related to non-vested stock options. That cost is expected to be recognized over a weighted-average period of
3.63 years.

As of September 30, 2007, the Company had granted non-vested shares of common stock to certain directors and employees as
part of incentive programs and to those directors who elected to use deferred directors fees to purchase non-vested shares of common stock. Non-vested shares of common stock awarded to employees and directors as part of incentive programs have
vesting schedules that range from four to nine years and are expensed over the same schedules. Non-vested shares of common stock issued to directors as a method of deferring their directors fees are expensed at the time the fees are earned by
the director. A summary of the Companys non-vested share activity and related information for the nine months ended September 30, 2007 is as follows:



|                              |  |                 |  |                                       |      
|----------------------------- |  | --------------- |  | ------------------------------------- | -----
|                              |  | Number ofShares |  | Weighted-AverageGrant-Date Fair Value
|Balance at December 31, 2006  |  | 47,176          |  | $                                     | 10.76
|Granted                       |  | 10,364          |  |                                       | 12.00
|Vested                        |  |                |  |                                       |     
|                              |  |                 |  |                                       |      
|Balance at September 30, 2007 |  | 57,540          |  | $                                     | 10.98
|                              |  |                 |  |                                       |      

As of September 30, 2007, there were $213,558 of total unrecognized compensation cost related
to non-vested shares of common stock. That cost is expected to be recognized over a weighted-average period of 4.39 years.



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NOTE C  INVESTMENT SECURITIES

The amortized cost and estimated fair values of investment securities available-for-sale were:



|                                    |  |                    |            |                     |   |               |  |                     |            |  |   |           
|----------------------------------- |  | ------------------ | ---------- | ------------------- | - | ------------- |  | ------------------- | ---------- |  | - | ----------
|                                    |  | September 30, 2007 |            | December 31, 2006  
|                                    |  | AmortizedCost      |            | EstimatedFair Value |   | AmortizedCost |  | EstimatedFair Value
|U.S. Agency securities              |  | $                  | 44,949,976 |                     | $ | 44,808,906    |  | $                   | 54,954,164 |  | $ | 54,309,219
|U.S. Treasury securities            |  |                    |           |                     |   |              |  |                     | 100,000    |  |   | 98,539    
|Mortgage-backed securities          |  |                    | 658,076    |                     |   | 654,318       |  |                     | 711,561    |  |   | 706,682   
|State and Municipal securities      |  |                    | 243,775    |                     |   | 242,447       |  |                     |           |  |   |          
|Equity securities                   |  |                    | 472,500    |                     |   | 374,500       |  |                     | 472,500    |  |   | 455,000   
|                                    |  |                    |            |                     |   |               |  |                     |            |  |   |           
|Total securities available-for-sale |  | $                  | 46,324,327 |                     | $ | 46,080,171    |  | $                   | 56,238,225 |  | $ | 55,569,440
|                                    |  |                    |            |                     |   |               |  |                     |            |  |   |           

NOTE D  LOANS

Major classifications of loans are summarized as follows:



|                                     |  |                   |             |   |                  |   |             |  
|------------------------------------ |  | ----------------- | ----------- | - | ---------------- | - | ----------- | -
|                                     |  | September 30,2007 |             |   | December 31,2006 |  
|Commercial                           |  | $                 | 110,040,096 |   |                  | $ | 72,132,578  |  
|Construction                         |  |                   | 148,460,250 |   |                  |   | 116,812,110 |  
|Real estate-commercial mortgage      |  |                   | 146,750,707 |   |                  |   | 140,259,912 |  
|Real estate-residential mortgage     |  |                   | 36,975,034  |   |                  |   | 25,522,729  |  
|Installment loans (to individuals)   |  |                   | 11,173,795  |   |                  |   | 20,599,390  |  
|Deferred loan fees and related costs |  |                   | (256,303    | ) |                  |   | (282,558    | )
|                                     |  |                   |             |   |                  |   |             |  
|Total loans                          |  | $                 | 453,143,579 |   |                  | $ | 375,044,161 |  
|                                     |  |                   |             |   |                  |   |             |  

Non-performing assets were as follows:



|                                                   |  |                   |           |                  |   |          
|-------------------------------------------------- |  | ----------------- | --------- | ---------------- | - | ---------
|                                                   |  | September 30,2007 |           | December 31,2006
|Loans 90 days past due and still accruing interest |  | $                 | 1,501,534 |                  | $ |         
|Nonaccrual loans                                   |  |                   | 1,524,547 |                  |   | 1,629,990
|Real estate acquired in settlement of loans        |  |                   | 69,552    |                  |   |         
|                                                   |  |                   |           |                  |   |          
|Total non-performing assets                        |  | $                 | 3,095,633 |                  | $ | 1,629,990
|                                                   |  |                   |           |                  |   |          

Information on impaired loans was as follows:



|                                                                                 |  |                   |           |                  |   |          
|-------------------------------------------------------------------------------- |  | ----------------- | --------- | ---------------- | - | ---------
|                                                                                 |  | September 30,2007 |           | December 31,2006
|Impaired loans for which an allowance has been provided                          |  | $                 | 2,149,831 |                  | $ | 1,854,990
|Impaired loans for which no allowance has been provided                          |  |                   |          |                  |   |         
|                                                                                 |  |                   |           |                  |   |          
|Total impaired loans                                                             |  | $                 | 2,149,831 |                  | $ | 1,854,990
|                                                                                 |  |                   |           |                  |   |          
|Allowance provided for impaired loans, included in the allowance for loan losses |  | $                 | 489,909   |                  | $ | 438,998  
|                                                                                 |  |                   |           |                  |   |          
|Average balance in impaired loans                                                |  | $                 | 2,190,491 |                  | $ | 1,936,082
|                                                                                 |  |                   |           |                  |   |          
|Interest income recognized from impaired loans                                   |  | $                 | 44,972    |                  | $ | 1,026    
|                                                                                 |  |                   |           |                  |   |          



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NOTE E  ALLOWANCE FOR LOAN LOSSES

Transactions affecting the allowance for loan losses during the nine months ended September 30, 2007 and 2006 were as follows:



|                               |  |      |           |   |      |   |           |  
|------------------------------ |  | ---- | --------- | - | ---- | - | --------- | -
|                               |  | 2007 |           |   | 2006 |  
|Balance at beginning of period |  | $    | 3,910,943 |   |      | $ | 3,597,497 |  
|Provision for loan losses      |  |      | 738,000   |   |      |   | 90,000    |  
|Loans charged off              |  |      | (10,775   | ) |      |   | (54,736   | )
|Recoveries                     |  |      | 9,098     |   |      |   | 188,703   |  
|                               |  |      |           |   |      |   |           |  
|Balance at end of period       |  | $    | 4,647,266 |   |      | $ | 3,821,464 |  
|                               |  |      |           |   |      |   |           |  

NOTE F  PREMISES AND EQUIPMENT

Premises and equipment consisted of the following:



|                                               |  |                    |            |   |                   |   |            |  
|---------------------------------------------- |  | ------------------ | ---------- | - | ----------------- | - | ---------- | -
|                                               |  | September 30, 2007 |            |   | December 31, 2006 |  
|Land                                           |  | $                  | 4,321,466  |   |                   | $ | 4,321,467  |  
|Buildings and improvements                     |  |                    | 6,053,343  |   |                   |   | 6,008,298  |  
|Leasehold improvements                         |  |                    | 833,203    |   |                   |   | 820,694    |  
|Equipment, furniture and fixtures              |  |                    | 5,406,490  |   |                   |   | 5,178,374  |  
|                                               |  |                    |            |   |                   |   |            |  
|                                               |  |                    | 16,614,502 |   |                   |   | 16,328,833 |  
|Less accumulated depreciation and amortization |  |                    | (4,796,225 | ) |                   |   | (4,144,949 | )
|                                               |  |                    |            |   |                   |   |            |  
|Premises and equipment, net                    |  | $                  | 11,818,277 |   |                   | $ | 12,183,884 |  
|                                               |  |                    |            |   |                   |   |            |  

NOTE G  SUPPLEMENTAL RETIREMENT AGREEMENTS

The Company has entered into supplemental retirement agreements with several key officers and recognizes expense each year related to these agreements
based on the present value of the benefits expected to be provided to the employees and any beneficiaries. The expense recognized during the first nine months of 2007 and 2006 was $377,540 and $367,872, respectively.

ITEM 2  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion provides information about the important factors affecting the consolidated results of operations, financial condition, capital resources and liquidity of the Company. This report identifies trends and material
changes that occurred during the reporting periods and should be read in conjunction with the 2006 Form 10-K.

The Companys primary
source of revenue is from net interest income earned by the Bank. Net interest income represents interest and fees earned from lending and investment activities less the interest paid to fund these activities. Variations in the volume and mix of
interest earning assets and interest bearing liabilities, changes in the yields earned and the rates paid, and the level of noninterest bearing liabilities available to support earning assets, all impact net interest income. In addition to net
interest income, noninterest income is another important source of revenue for the Company. Noninterest income is derived primarily from service charges on deposits and fees earned from bank services. Other factors that impact net income are the
provision for loan losses and noninterest expense.

Financial Condition

Total average assets, a benchmark used by banks when comparing size, are the strongest indicator of our continuous growth. Average assets increased $88.9
million, or 21.1%, to a new high of $509.6 million for the nine months ended September 30, 2007 compared to the nine months ended September 30, 2006. Total assets at September 30, 2007 were $544.2 million, an increase of $67.9
million, or 14.3%, over December 31, 2006 total assets of $476.3 million.



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As a community bank, the Company has a primary objective of meeting the business and consumer credit
needs within its market where standards of profitability, client relationships and credit quality can be met. The loan portfolio grew $78.1 million, or 20.8%, to $453.1 million as of September 30, 2007 compared to December 31, 2006.
Commercial loans increased 52.6% to $110.0 million in the first nine months of 2007 compared with $72.1 million at year end 2006. Real estate residential mortgages increased 44.9% to $37.0 million at September 30, 2007 compared with $25.5
million at December 31, 2006. Construction loans, which include land development and other land loans, increased 27.1% to $148.5 million compared with $116.8 million at December 31, 2006. On a relative basis, construction loans decreased
from 22.4% of the loan portfolio one year ago to 16.6% at September 30, 2007.

The Company continuously reviews its loan portfolio and
maintains an allowance for loan losses sufficient to absorb losses inherent in the portfolio. In addition to the review of credit quality through ongoing credit review processes, the Company conducts an independent and comprehensive allowance
analysis of its loan portfolio at least quarterly. The allowance for loan losses was $4.6 million, or 1.03% of outstanding loans, as of September 30, 2007 compared with $3.9 million, or 1.04% of outstanding loans, as of December 31, 2006.
Management considers the allowance for loan losses to be adequate. Management classifies as non-performing those loans in nonaccrual status, those loans on which payment has been delinquent for 90 days or more, and real estate acquired in the
settlement of loans. Total non-performing assets were $3.1 million or 0.57% of total assets at September 30, 2007 compared with $1.6 million or 0.34% of total assets at December 31, 2006. Non accrual loans at September 30, 2007 were
$1.5 million and consisted of one commercial loan. Loans past due 90 days or more at September 30, 2007 were $1.5 million and consisted of three real estate loans, one commercial loan and one installment loan. Real estate acquired in the
settlement of loans was $70 thousand and consisted of one piece of residential property.

The Companys investment portfolio consists
primarily of available-for-sale U.S. Agency, U.S. Treasury and mortgage-backed securities. At September 30, 2007, the estimated market value of investment securities held by the Company was $46.1 million, down $9.5 million, or 17.1%, from $55.6
million at December 31, 2006. The decrease was the result of maturities of investment securities with a par value of $11.0 million netted against the purchase of investment securities with a par value of $1.2 million along with the change in
unrealized gains or losses on available-for-sale investment securities and amortization/accretion of premiums/discounts on the remaining investment securities.

Deposits are the primary source of the Companys funds for use in lending and general business purposes. The Companys balance sheet growth is largely determined by the availability of deposits in its
market, the cost of attracting the deposits, and the prospects of profitably utilizing the available deposits by increasing the loan or investment portfolios. Total deposits at September 30, 2007 increased $48.1 million, or 13.2%, to $411.4
million compared to $363.3 million at December 31, 2006. Changes in the deposit categories include an increase of $2.0 million or 2.1% in noninterest bearing demand deposits, a decrease of $1.6 million or 3.9% in interest bearing demand
deposits and an increase of $15.4 million or 20.9% in savings accounts from December 31, 2006 to September 30, 2007. Total time deposits increased $32.3 million, or 21.6%, from December 31, 2006 to September 30, 2007. The
increase in time deposits was a result of efforts by the Company to remain competitive in its market by increasing rates offered on time deposits.

Federal Home Loan Bank borrowings increased $15.0 million or 39.5% to $53.0 million at September 30, 2007 compared to $38.0 million at December 31, 2006. The additional borrowings were used to fund loan growth during the first
nine months of 2007.

Results of Operations

During the first nine months of 2007, the Company had net income of $5.1 million, an increase of 15.5% over net income of $4.4 million in the first nine months of 2006. The increase in net income in the first nine months of 2007 was driven
largely by strong loan growth resulting in increased interest income. Diluted earnings per share remained unchanged at $0.49 per share for each of the first nine months of 2007 and 2006. Return on average total assets for the first nine months of
2007 decreased to 1.34% from 1.40% for the first nine months of 2006. Return on average shareholders equity decreased in the first nine months of 2007 to 9.58% from 11.02% for the first nine months of 2006 due to an increase in average
shareholders equity of $17.6 million over the comparable period in 2006. The Company raised new capital through a rights offering and public offering resulting in the issuance of 1,849,200 new shares of common stock in the third quarter of
2006. Net income for the three months ended September 30, 2007 was $1.8 million compared with $1.5 million for the three months ended September 30, 2006. Diluted earnings per share increased 12.5% to $0.18 per share in the three months
ended September 30, 2007 compared to $0.16 per share in the three months ended September 30, 2006. The increases in income and diluted earnings per share in the third quarter of 2007 were driven largely by strong loan growth.



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Net interest income for the first nine months of 2007 was $18.1 million, a $2.7 million or 17.8% increase
over the first nine months of 2006. Net interest income for the third quarter of 2007 was $6.3 million, a $960 thousand or 18.0% increase over the third quarter of 2006.

The net interest margin, which is calculated by expressing net interest income as a percentage of average interest earning assets, is an indicator of effectiveness in generating income from earning assets. The
Companys net interest margin decreased from 5.26% during the first nine months of 2006 to 5.05% for the same period in 2007 due to the higher cost of funding loan growth. The Companys net interest margin for the three months ended
September 30, 2007 was 5.02% compared with 5.15% in the three months ended September 30, 2006. On September 18, 2007, the Federal Open Market Committee reduced the target federal funds rate by 50 basis points. This reduction in rates
is expected to have an adverse effect on the net interest margin in the fourth quarter of 2007.

The Companys interest earning assets
consist primarily of loans, investment securities, interest-bearing deposits in other banks, and overnight funds sold. Interest income on loans, including fees, increased $6.9 million to $26.2 million for the nine months ended September 30,
2007 compared to the same time period during 2006. This increase resulted from the 21 basis point increase experienced in the average interest yield along with the $102.3 million increase in the average loan balance. Interest income on loans,
including fees, increased 30.7% to $9.3 million for the three months ended September 30, 2007 compared to $7.1 million for the three months ended September 30, 2006. Interest income on investment securities decreased $306 thousand to $1.8
million for the nine months ended September 30, 2007 compared to the same time period during 2006. The $13.7 million decrease in the average investment securities balance netted against a 25 basis point increase in the average interest yield
produced this decrease. Interest income on investment securities decreased 11.6% to $571 thousand for the three months ended September 30, 2007 compared to $645 thousand for the three months ended September 30, 2006. Interest income on
interest-bearing deposits in other banks increased $128 thousand for the nine months ended September 30, 2007 compared to the same time period during 2006. This increase was the result of the 25 basis point increase in the average interest
yield along with a $3.2 million increase in average interest-bearing deposits in other banks. Interest income on interest-bearing deposits in other banks increased $5 thousand to $86 thousand for the three months ended September 30, 2007
compared to the three months ended September 30, 2006. Interest income on overnight funds sold decreased $108 thousand to $34 thousand for the nine months ended September 30, 2007 compared to the same time period during 2006. This decrease
was due to the $3.0 million decrease in average overnight funds sold partially offset by the 22 basis point increase experienced in the average interest yield. Interest income on overnight funds sold decreased $76 thousand to $5 thousand for the
three months ended September 30, 2007 compared to the three months ended September 30, 2006.

The Companys interest bearing
liabilities consist of deposit accounts and other borrowings. Interest expense from deposits increased $3.3 million to $8.5 million for the nine months ended September 30, 2007 compared to the same time period during 2006. This increase
resulted from the 94 basis point increase experienced in the average interest rate on interest bearing deposits, as well as the $58.1 million increase in average interest bearing deposits. Interest expense on deposits increased 40.9% to $3.0 million
for the three months ended September 30, 2007 compared to $2.1 million for the three months ended September 30, 2006. Interest expense from other borrowings, which consists of FHLB borrowings and overnight funds purchased, increased $573
thousand to $1.7 million for the nine months ended September 30, 2007 compared to the same time period during 2006. The $12.3 million increase in average other borrowings and the 58 basis point increase in the average interest rate on other
borrowings produced this result. Interest expense on other borrowings increased 47.6% to $617 thousand for the three months ended September 30, 2007 compared to $418 thousand for the three months ended September 30, 2006.

During the first nine months of 2007, the Company recorded net loan charge-offs of $2 thousand and a provision for loan losses in the amount of $738
thousand. The provision for loan losses increased due to the strong loan growth, as well as an increase in non performing loans of $1.5 million during that time period. During the first nine months of 2006, the Company recorded loan recoveries to
the allowance for loan losses in the amount of $189 thousand and loan charge-offs in the amount of $55 thousand and a provision for loan losses of $90 thousand.

The Company reported an increase in total noninterest income of $10 thousand, or 0.4%, for the first nine months of 2007 compared to the same period in 2006. Service charges on deposit accounts, the Companys
primary source of noninterest income, increased $107 thousand or 7.7% to $1.5 million for the first nine months of 2007 compared to the same period in 2006. Other service charges and fees decreased $97 thousand, or 8.2%, for the first nine months of
2007 compared to the first nine months of 2006. Noninterest income comprised 8.4% of total revenue in the first nine months of 2007 compared to 10.6% in the first nine months of 2006. Noninterest income decreased 3.5% to $824 thousand for the three
months ended September 30, 2007 compared to $854 thousand for the three months ended September 30, 2006.



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Noninterest expense represents the overhead expenses of the Company. Total noninterest expense increased
$1.1 million, or 9.5%, for the first nine months of 2007 compared to the first nine months of 2006. This increase was primarily attributable to a 13.5% increase in salaries and employee benefits resulting from normal annual salary adjustments, the
addition of several key positions, and increases in certain employee benefit costs, including stock-based compensation. Occupancy expense decreased to $1.2 million for the nine months ended September 30, 2007 compared to $1.3 million for the
same time period in 2006. Data processing expense, another category of noninterest expense, posted an increase of 1.2% for the first nine months of 2007 compared to the first nine months of 2006, which reflected increases in the cost of data
processing supplies and software maintenance. Other noninterest expenses posted an increase of 5.8% to $2.8 million for the first nine months of 2007 compared to the same time period during 2006. The ratio of annualized noninterest expense to
average total assets was 3.19% for the first nine months of 2007 compared to 3.53% for the first nine months of 2006. Noninterest expense increased 6.7% to $4.1 million for the three months ended September 30, 2007 compared to $3.8 million for
the three months ended September 30, 2006.

Income tax expense for the first nine months of 2007 and 2006 was $2.7 million and $2.3
million, respectively. The Companys effective tax rate was 34.2% in 2007 and 2006, and differed from the statutory rate of 34.0% due primarily to nondeductible expenses. Income tax expense for the three months ended September 30, 2007 and
2006 was $970 thousand and $790 thousand, respectively. The Companys effective tax rate for each of the three month periods ended September 30, 2007 and September 30, 2006 was 34.6% and 34.2%, respectively.

Capital Resources and Liquidity

Total
shareholders equity increased $2.3 million, or 3.3%, to $72.5 million at September 30, 2007 compared to $70.2 million at December 31, 2006. As of September 30, 2007, the Company and the Bank were considered
well-capitalized, the highest category of capitalization defined by the Federal Reserve Bank (the FRB). The Company continually monitors current and projected capital adequacy positions of both the Company and the Bank.
Maintaining adequate capital levels is integral to providing stability to the Company, resources to achieve the Companys growth objectives, and returns to the shareholders in the form of dividends.

A key goal of asset/liability management is to maintain an adequate degree of liquidity without impairing long-term earnings. Liquidity represents the
Companys ability to meet present and future financial obligations through either the sale or maturity of existing assets or the acquisition of additional funds through liability management. Short-term liquidity is provided primarily by access
to the federal funds market through established correspondent banking relationships. Funds also can be obtained through the Companys borrowing privileges at the FRB and the Federal Home Loan Bank (the FHLB). Additional liquidity is
available through loan repayments and maturities of the Companys investment portfolio. The Company maintains a very liquid portfolio of both assets and liabilities and attempts to mitigate the risk inherent in changing rates in this manner.
Management believes that the Company maintains overall liquidity sufficient to satisfy its depositors requirements and to meet its customers credit needs.

Off-Balance Sheet Arrangements

The Company is a party to financial instruments with off-balance
sheet risk in the normal course of business to meet the financing needs of its customers. For more information on the Companys off-balance sheet arrangements, see Note 8 of the Notes to Consolidated Financial Statements contained in the 2006
Form 10-K.

Contractual Obligations

The Companys contractual obligations consist of FHLB borrowings, time deposits, and operating lease obligations. There have been no material changes to the contractual obligations disclosed in the 2006 Form 10-K.

Critical Accounting Policies

U.S. generally accepted
accounting principles are complex and require management to apply significant judgment to various accounting, reporting, and disclosure matters. Management must use assumptions, judgments, and estimates when applying these principles where precise
measurements are not possible or practical. These policies are critical because they are highly dependent upon subjective or complex judgments, assumptions and estimates. Changes in such judgments, assumptions and estimates may have a significant
impact on the consolidated financial statements. Actual results, in fact, could differ from those estimates.

Our only critical accounting
policy relates to our allowance for loan losses, which reflects the estimated losses resulting from the inability of our borrowers to make required loan payments. The allowance for loan losses is established through a provision for loan losses
charged to expense. Loans are charged against the allowance for loan losses when management believes that collectibility of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance.



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The allowance is an amount that management believes will be adequate to absorb estimated losses relating
to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio, based on an evaluation of the collectibility of existing loans and prior loss experience. This evaluation also takes into
consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, credit concentrations, trends in historical loss experience, review of specific problem loans, and current economic conditions.

The allowance consists of specific, general, and unallocated components. The specific component relates to loans that are classified as
impaired, doubtful, substandard or special mention. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that
could affect managements estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in
the portfolio.

A loan is impaired when it is probable the creditor will be unable to collect all contractual principal and interest
payments due in accordance with the terms of the loan agreement. Impaired loans are measured based on the present value of payments expected to be received, using the historical effective loan rate as the discount rate. Alternatively, measurement
also may be based on observable market prices or, for loans that are solely dependent on the collateral for repayment, measurement may be based on the fair value of the collateral. The Company does not aggregate loans for risk classification. Loans
that are to be foreclosed are measured based on the fair value of the collateral. If the recorded investment in the impaired loan exceeds the measure of fair value, a valuation allowance is established as a component of the allowance for loan
losses. Changes in the allowance for loan losses relating to impaired loans are charged or credited to the provision for loan losses.

Accounting
Pronouncements

In September 2006, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting
Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value
measurements. SFAS 157 does not require any new fair value measurements, but may change current practice for some entities. This Statement is effective for financial statements issued for fiscal years beginning after November 15, 2007 and
interim periods within those years. The Company does not expect the implementation of SFAS 157 to have a material impact on its consolidated financial statements.

In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (SFAS 159). This statement permits
entities to choose to measure many financial instruments and certain other items at fair value. The objective of this Statement is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings
caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. The fair value option established by this Statement permits all entities to choose to measure eligible items at fair value at
specified election dates. A business entity shall report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. The fair value option may be applied instrument by
instrument and is irrevocable. SFAS 159 is effective as of the beginning of an entitys first fiscal year that begins after November 15, 2007. The Company does not expect the implementation of SFAS 159 to have a material impact on its
consolidated financial statements.

Forward-Looking Statements

Where appropriate, statements in this report may contain the insights of management into known events and trends that have or may be expected to have a material effect on our operations and financial condition. The
information presented may also contain certain forward-looking statements regarding future financial performance, which are not historical facts and which involve various risks and uncertainties.

When or if used in this quarterly report or any Securities and Exchange Commission filings, or other public or shareholder communications, or in oral
statements made with the approval of an authorized executive officer, the words or phrases anticipate, would be, will allow, intends to, will likely result, are expected to,
will continue, is anticipated, is estimated, is projected, or similar expressions are intended to identify forward-looking statements.



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For a discussion of the risks, uncertainties and assumptions that could affect these statements and our
future events, developments or results, you should carefully review the risk factors summarized below and the more detailed discussions in the Risk Factors and Business sections in the 2006 Form 10-K. Our risks include,
without limitation, the following:



| |  |  | Our dependence on key personnel;
| | - |  | --------------------------------



| |  |  | The high level of competition within the banking industry;
| | - |  | ----------------------------------------------------------



| |  |  | Our dependence on construction and land development loans that could be negatively affected by a downturn in the real estate market;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The adequacy of our estimate for known and inherent losses in our loan portfolio;
| | - |  | ---------------------------------------------------------------------------------



| |  |  | Changes in interest rate;
| | - |  | -------------------------



| |  |  | Our ability to manage our growth;
| | - |  | ---------------------------------



| |  |  | Governmental and regulatory changes that may adversely affect our expenses and cost structure;
| | - |  | ----------------------------------------------------------------------------------------------



| |  |  | The threat from technology based frauds and scams; and
| | - |  | ------------------------------------------------------



| |  |  | Our ability to use the proceeds from our recent offerings profitably.
| | - |  | ---------------------------------------------------------------------

Our forward-looking statements could be wrong in light of these and other risks, uncertainties and assumptions. The future events, developments or
results described in this report could turn out to be materially different. We have no obligation to publicly update or revise our forward-looking statements after the date of this quarterly report and you should not expect us to do so.

ITEM 3  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Companys primary market
risk is exposure to interest rate volatility. Fluctuations in interest rates will impact both the level of interest income and interest expense and the market value of the Companys interest earning assets and interest bearing liabilities.

The primary goal of the Companys asset/liability management strategy is to optimize net interest income while limiting exposure to
fluctuations caused by changes in the interest rate environment. The Companys ability to manage its interest rate risk depends generally on the Companys ability to match the maturities and re-pricing characteristics of its assets and
liabilities while taking into account the separate goals of maintaining asset quality and liquidity and achieving the desired level of net interest income.

The Companys management, guided by the Asset/Liability Committee, determines the overall magnitude of interest sensitivity risk and then formulates policies governing asset generation and pricing, funding
sources and pricing, and off-balance sheet commitments. These decisions are based on managements expectations regarding future interest rate movements, the state of the national and regional economy, and other financial and business risk
factors.

The primary method that the Company uses to quantify and manage interest rate risk is simulation analysis, which is used to model
net interest income from assets and liabilities over a specified time period under various interest rate scenarios and balance sheet structures. This analysis measures the sensitivity of net interest income over a relatively short time horizon. Key
assumptions in the simulation analysis relate to the behavior of interest rates and spreads, the changes in product balances and the behavior of loan and deposit customers in different rate environments.

The expected effect on net interest income for the twelve months following September 30, 2007 and December 31, 2006 due to a shock in interest
rates is shown below. These estimates are dependent on material assumptions, such as those previously discussed.



|                          |  |                                                 |        |   |                                                |        |   |        |   |        |   |  |        |  
|------------------------- |  | ----------------------------------------------- | ------ | - | ---------------------------------------------- | ------ | - | ------ | - | ------ | - |  | ------ | -
|                          |  | September 30, 2007Change in Net Interest Income |        |   | December 31, 2006Change in Net Interest Income |       
|(in thousands)            |  | Amount                                          |        |   | %                                              |        |   | Amount |   |        | % | 
|Change in Interest Rates: |  |                                                 |        |   |                                                |        |   |        |   |        |   |  |        |  
|+200 basis points         |  | $                                               | 3,922  |   |                                                | 16.00  | % |        | $ | 3,130  |   |  | 14.12  | %
|+ 100 basis points        |  |                                                 | 1,950  |   |                                                | 7.96   | % |        |   | 1,561  |   |  | 7.04   | %
|- 100 basis points        |  |                                                 | (1,957 | ) |                                                | -7.99  | % |        |   | (1,567 | ) |  | -7.06  | %
|- 200 basis points        |  |                                                 | (3,860 | ) |                                                | -15.75 | % |        |   | (3,141 | ) |  | -14.17 | %

A decrease in interest rates would reduce the Companys net interest income, while an
increase would tend to increase the Companys net interest income. Thus, the Companys interest rate sensitivity position is asset-sensitive. It should be noted, however,



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that the simulation analysis is based upon equivalent changes in interest rates for all categories of assets and liabilities. In normal operating conditions
interest rate changes rarely occur in such a uniform manner. Many factors affect the timing and magnitude of interest rate changes on financial instruments. Consequently, variations should be expected from the projections resulting from the
controlled conditions of the simulation analysis.

The Company had no derivative financial instruments, foreign currency exposure, or
trading portfolio as of September 30, 2007.

ITEM 4  CONTROLS AND PROCEDURES

As of September 30, 2007, the Company carried out an
evaluation, under the supervision and with the participation of the Companys management, including the Companys Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Companys
disclosure controls and procedures pursuant to Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the Exchange Act). Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the
Companys disclosure controls and procedures are effective in timely alerting them to material information relating to the Company (including its consolidated subsidiaries) required to be included in the Companys Exchange Act filings. In
addition, no change in its internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) occurred during the quarter ended September 30, 2007 that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting.

PART II  OTHER INFORMATION

ITEM 1  LEGAL PROCEEDINGS

In the ordinary course of operations, the Company may become a party to
legal proceedings. Currently, the Company is not party to any material legal proceedings.

ITEM 1A  RISK FACTORS

There have been no material changes from the risk factors as previously
disclosed in the 2006 Form 10-K.

ITEM 2  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The Company announced an open
ended program on August 13, 2003 by which management was authorized to repurchase an unlimited number of shares of the Companys common stock in open market and privately negotiated transactions. During the first nine months of 2007, the
Company repurchased 183,968 shares of its common stock in open market and privately negotiated transactions. Detail for the share repurchase transactions conducted during the third quarter of 2007 appears below.



|                                               |  |                                |  |                              |       |                                                                                  |        |                                                                               |  
|---------------------------------------------- |  | ------------------------------ |  | ---------------------------- | ----- | -------------------------------------------------------------------------------- | ------ | ----------------------------------------------------------------------------- | -
|Period                                         |  | Total Numberof SharesPurchased |  | Average Price Paid Per Share |       | Total Number of Shares Purchased as Part of
Publicly Announced Plans or Programs |        | Maximum Number of Shares that MayYet be Purchased Under the Plans or Programs
|Month #1 July 1, 2007- July 31, 2007           |  |                               |  |                              |      |                                                                                  |       |                                                                               | 
|Month #2 August 1, 2007- August 31, 2007       |  | 25,600                         |  | $                            | 12.52 |                                                                                  | 25,600 |                                                                               | 
|Month #3 September 1, 2007- September 30, 2007 |  | 39,636                         |  | $                            | 14.42 |                                                                                  | 39,636 |                                                                               | 
|Total                                          |  | 65,236                         |  | $                            | 13.67 |                                                                                  | 65,236 |                                                                               | 



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ITEM 3  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5  OTHER INFORMATION

None.

ITEM 6  EXHIBITS



|     |  |                                                                                                                                                                                          
|---- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1  |  | Articles of Incorporation of Hampton Roads Bankshares, Inc., attached as Exhibit 3.1 to the Registrants Current Report on Form 8-K dated July 2, 2001, incorporated herein by reference.
|     | 
|3.2  |  | Bylaws of Hampton Roads Bankshares, Inc., as amended, are filed herewith.                                                                                                                
|     | 
|4.1  |  | Specimen of Common Stock Certificate, attached as Exhibit 4.1 to the Registrants Annual Report on Form 10-K for the year ended December 31, 2005, incorporated herein by
reference.     
|     | 
|31.1 |  | The Rule 13a-14(a)/15d-14(a) certification of Jack W. Gibson is filed herewith.                                                                                                          
|     | 
|31.2 |  | The Rule 13a-14(a)/15d-14(a) certification of Donald W. Fulton, Jr. is filed herewith.                                                                                                   
|     | 
|32.1 |  | The Section 1350 certifications of Jack W. Gibson and Donald W. Fulton, Jr. are filed herewith.                                                                                          

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly authorized.



|                       |  |  |  |                                                                 
|---------------------- |  |  |  | ----------------------------------------------------------------
|                       |  |  |  | HAMPTON ROADS BANKSHARES, INC.                                  
|                       |  |  |  | (Registrant)                                                    
|                       |  | 
|DATE: November 7, 2007 |  |  |  | /s/ Donald W. Fulton, Jr.                                       
|                       |  |  |  | Donald W. Fulton, Jr.                                           
|                       |  |  |  | Senior Vice President and Chief Financial Officer               
|                       |  |  |  | (On behalf of the Registrant and as principal
financial officer)



17