This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

FNB United Corp. Announces Second Quarter Results

ASHEBORO, N.C., July 29, 2010 (GLOBE NEWSWIRE) -- FNB United Corp. (Nasdaq:FNBN), the holding company for CommunityOne Bank, N.A., and its wholly owned subsidiary, Dover Mortgage Company, today reported a net loss of $25.7 million, or $(2.25) per diluted share, for the second quarter of 2010, compared to a net loss of $1.2 million, or $(0.11) per diluted share, for the second quarter a year ago. Second quarter 2010 results include a $27.4 million provision for loan losses. For the first six months of the year, following a $36.9 million provision for loan losses, FNB United reported a net loss of $30.1 million, or $(2.64) per diluted share, compared to a net loss of $7.4 million, or $(0.65) per diluted share, in the first six months of 2009.

"Our negative operating performance is attributable mainly to increased loan loss provisions, resulting from an intensified re-evaluation process directed toward our classified collateral-dependent real estate loans. In addition, an extensive third-party loan review in the second quarter resulted in some increase in classified loans, which carry higher reserves, and thus increased provisions. Our market continues to be adversely affected by the sluggish North Carolina and national economies, making it harder for some of our current loan customers to recover," said R. Larry Campbell, Interim President and CEO. "In light of market realities, we have continued to set aside significant reserves over the past several quarters, almost doubling our allowance for loan losses since June 2009," Mr. Campbell continued. He further commented, "During the past year we have been reducing our loan portfolio and building liquidity. We are also actively engaged with financial advisors to assist us in developing a capital raising plan over the coming months to stabilize our financial position."

Consent Order

The Bank signed a Consent Order with the Office of the Comptroller of the Currency on July 22, 2010, which mandates specific actions by the Bank to address certain findings from the OCC's examination and to address the Bank's current financial condition. The Consent Order contains various requirements, including a capital directive that requires the Bank to achieve and maintain minimum regulatory capital levels in excess of the statutory minimums to be well-capitalized, more controls on future extensions of credit, and the Bank's development of various programs and procedures to improve its asset quality. In anticipation of the Consent Order, the Bank has been developing a three-year strategic plan that establishes specific objectives, as outlined in the Consent Order.

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs