This Day On The Street
Continue to site
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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FNBN $9.14 0.88%
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs