Two Virginia banks approved for federal help

NORFOLK, Va. - A pair of Virginia banks say they've received preliminary approval for an injection of more than $80 million in capital from the federal government's bank investment program.

Norfolk-based Hampton Roads Bankshares announced Friday it's received preliminary approval to sell $22.3 million worth of preferred stock and warrants for common stock to the U.S. Treasury.

The agency administers the program, which is designed to make credit more available to help support the U.S. economy.

Virginia Beach-based Gateway Financial Holdings, meanwhile, says it has preliminary approval to sell $58 million worth of preferred stock and warrants to the Treasury.

The companies are in the midst of a merger. Combined, they operate branches in Virginia and North Carolina.

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