FNB United Corp. Announces Third Quarter Results
ASHEBORO, N.C., Nov. 10, 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 $55.7 million, or $(4.87) per diluted share, for the third quarter of 2010, compared to a net loss of $68.3 million, or $(5.98) per diluted share, for the third quarter a year ago. Third quarter 2010 results include a $55.9 million provision for loan losses. For the first nine months of the year, following a $92.8 million provision for loan losses, FNB United reported a net loss of $85.8 million, or $(7.51) per diluted share, compared to a net loss of $75.7 million, or $(6.63) per diluted share, in the first nine months of 2009.
"During the third quarter, nonperforming loans increased over $61 million. The increase in the provision was attributable primarily to a broad reduction of real estate values securing our collateral-dependent impaired loans, as well as increased historical loss rates. As a result of intensive loan review, management believes the allowance for loan losses is adequate to cover probable losses inherent in the loan portfolio," said R. Larry Campbell, Interim President and CEO.
Regulatory ActionsCommunityONE Bank consented to the issuance of a Consent Order by 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 the Bank's current financial condition. The Consent Order contains various requirements, including a capital directive, more controls on future extensions of credit, and the Bank's development of various programs and procedures to improve its asset quality. The capital directive requires the Bank to achieve and maintain minimum regulatory capital levels in excess of the statutory minimums to be well-capitalized. In connection with the Consent Order, the Bank has developed a three-year strategic plan that establishes specific objectives, as outlined in the Consent Order, and is awaiting OCC approval of the plan.
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