FNB United Corp. Announces Fourth Quarter Results
ASHEBORO, N.C., March 14, 2011 (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 financial results for the fourth quarter of 2010. During the quarter, FNB United reported a net operating loss of $29.6 million, due largely to its recognition of provisions for loan losses of $22.4 million in the quarter. Adjusting for dividends payable to the U.S. Treasury on the preferred stock issued in the Capital Purchase Program, the fourth quarter 2010 loss attributable to common shareholders was $30.4 million, or $2.67 per diluted share. During the fourth quarter of 2009, FNB United recognized a provision for loan losses of $24.7 million and incurred a net loss of $28.9 million, or $2.53 per diluted share.
"We continue to expend considerable effort toward the management of non-performing assets," said R. Larry Campbell, Interim President and CEO. "Since the end of 2009 we have seen non-performing assets increase to $393.7 million at December 31, 2010. Because of these levels, we have been aggressively making provisions for loan loss reserves as well as charging off loans deemed to be uncollectible. Our allowance for loan losses as a percentage of loans held for investment is now 5.84% compared to 3.16% a year ago. We expect these levels to begin declining over the coming months as the economy improves and we aggressively work out of these credits." Mr. Campbell continued, "During this time we have also maintained high levels of liquidity. This has allowed us to manage our other borrowed money to lower levels."
During 2010, FNB United recognized provisions for loan losses totaling $115.2 million. The company also recognized net gains of $10.6 million from the sale of investment securities. As a result, FNB United reported a net operating loss of $112.9 million for the year ended December 31, 2010. Adjusting for dividends payable to the U.S. Treasury on the preferred stock issued in the Capital Purchase Program, the resulting 2010 loss attributable to common shareholders was $116.2 million, or $10.17 per diluted share.
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