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 Actions

CommunityONE 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.

In addition, on October 21, 2010, FNB United Corp. entered into a written agreement with the Federal Reserve Bank of Richmond. Pursuant to the agreement, FNB United's board of directors agreed to take appropriate steps to utilize fully FNB United's financial and managerial resources to serve as a source of strength to CommunityONE Bank, including causing the Bank to comply with the Consent Order issued by the OCC.

Campbell stated, "The Board of Directors and management fully agree with the Consent Order and the written agreement. We have a strategic capital plan that is designed to restore the capital levels at both the holding company and the bank. Further, FNB United is actively working with financial advisors, third party advisors and a team of management consultants to achieve this objective. We are regularly communicating with the OCC and Federal Reserve Bank on the plans and actions being taken to comply with capital ratios in the agreements."

Deposit Insurance

Neither the Consent Order nor the written agreement with the Federal Reserve Bank affects the Bank's FDIC coverage. The Bank's customer deposits remain fully insured by the FDIC to the maximum extent allowed by law. The standard deposit insurance amount is $250,000 per depositor for each account ownership category. In addition, the Bank participates in the FDIC's Transaction Account Guarantee Program, under which the FDIC will fully guarantee until December 31, 2010, all noninterest-bearing transaction accounts, NOW accounts with interest rates of 0.25% or less and IOLTAs (lawyer trust accounts), without regard to the amount in the account. For calendar years 2011 and 2012, deposits held in noninterest-bearing transaction accounts will be fully insured, regardless of the amount in the account.

Asset Quality and Provision for Loan Losses

Nonperforming loans increased during the third quarter to $291.9 million, or 20.58% of total loans at September 30, 2010 compared to $153.9 million, or 9.76% of total loans, at September 30, 2009. Construction and development loans were 50.9% of nonperforming loans for the quarter. Nonperforming loans were $230.4 million at the end of the preceding quarter.

Provisions for loan losses were $55.9 million for the quarter ended September 30, 2010, compared to $17.5 million in the same period in 2009, with total net charge-offs of $59.6 million in the third quarter of 2010 versus $12.0 million for the same period a year ago. For the nine months ended September 30, 2010, provision for loan losses totaled $92.8 million compared to $37.1 million for the prior-year period, with 2010 year-to-date net charges-offs of $76.2 million, increasing from $29.5 million in the first nine months of 2009.  FNB United's real estate owned and repossessed loan collateral was $48.9 million at September 30, 2010, compared to $42.1 million at June 30, 2010, and $24.6 million at September 30, 2009.

Nonperforming assets were $340.9 million, or 16.96% of total assets at September 30, 2010, compared to $272.5 million, or 13.47% at the end of the preceding quarter, and $178.5 million, or 8.14% a year ago. Nonperforming assets include all nonaccrual loans, all loans over 90 days delinquent and still accruing, other real estate owned, and other repossessed loan collateral. The total allowance for loan losses was $66.1 million at September 30, 2010, equal to 4.66% of loans held for investment, compared to 4.58% at June 30, 2010 and 2.69% at September 30, 2009.

Loans that were delinquent 30-89 days totaled $63.9 million, or 4.50% of total loans at September 30, 2010, compared to $19.0 million, or 1.25% of total loans at June 30, 2010, and $25.3 million, or 1.60% of total loans at September 30, 2009. The Bank had loans 90 days or more past due and still accruing, totaling $997,000 at September 30, 2010, $5.1 million at June 30, 2010 and $7.7 million at September 30, 2009.

The Bank has taken special measures to effectively manage impaired loans by adding new employees and engaging third-party contractors, all of whom are experienced in loan restorations and loan resolutions and are well equipped to resolve credit problems through forbearance, restructuring and modification agreements as well as note sales. FNB United believes adding resources in this way will help stabilize the increase in nonperforming loans and provide additional options for resolution.

Net Interest Income

Third quarter 2010 net interest income before the provision for loan losses was $11.6 million, compared to $14.0 million in the preceding quarter and $16.4 million in the third quarter a year ago. FNB United's net interest margin was 2.55% for the third quarter of 2010 compared to 3.08% in the immediate prior quarter and 3.25% in the third quarter a year ago. The reduction in the net interest margin in the third quarter 2010 of 53 basis points was primarily attributable to a reduction of 54 basis points in the average yield on commercial loans due to additional loans being put on non-accrual and the related reversal of interest income. The yield on interest earning assets declined 51 basis points compared to the previous quarter while the cost of interest-bearing liabilities increased by four basis points. For the first nine months of 2010, net interest income before the provision for loan losses was $41.3 million, compared to $45.8 million in the first nine months of 2009.

Noninterest Income

Total noninterest income was $6.5 million for the third quarter 2010, compared to $5.9 million in the previous quarter and $2.6 million in the third quarter a year ago. Mortgage loan income was $2.6 million, compared to $1.8 million for the same period in 2009. In the third quarter of 2009, the Bank incurred a $4.0 million other-than-temporary-impairment (OTTI) charge on an investment security. Noninterest income was $18.1 million for the first nine months of 2010 compared to $16.1 million in the first nine months of 2009.

Noninterest Expense

Total noninterest expense was $17.1 million in the third quarter of 2010, compared to $20.3 million in the preceding quarter and $69.1 million in the third quarter a year ago. The decrease of $3.1 million in total noninterest expense from the second to the third quarters 2010 is primarily due to a decrease in expenses related to other real estate owned of $3.3 million. The third quarter of 2009 included a final goodwill impairment charge of $52.4 million. Compensation and benefit expense for the third quarter 2010 was $1 million lower than the same period a year ago due in part to the decrease in the number of full-time equivalent employees from an average of 530 in the third quarter 2009 to 505 in the third quarter 2010.

For the first nine months of 2010, total noninterest expense decreased to $52.2 million, compared to $103.5 million in the first nine months of 2009. Net of the goodwill impairment charge in 2009 and the increase in other real estate owned expenses, expenses declined $3.3 million, or 6.7%.

Loans Held for Investment

Loans held for investment were $1.42 billion at third quarter-end 2010, compared to $1.58 billion a year earlier. Home equity loans increased $7.8 million, commercial loans decreased $190.5 million and residential loans were up $14.7 million at September 30, 2010, compared to a year ago. Assets decreased 8.4% to $2.01 billion at September 30, 2010, compared to $2.19 billion a year earlier.

Deposits

Total deposits increased 2.7% to $1.77 billion at September 30, 2010, compared to $1.72 billion twelve months earlier. Certificates of deposit increased 3.9% to $1.03 billion, from $996 million a year ago while other deposits increased 1.6% to $734 million at third quarter-end, compared to $726 million a year earlier.

Brokered certificates of deposits were $156.0 million at September 30, 2010, which was 8.8% of total deposits. As a result of the Consent Order described above, the Bank can no longer renew, roll-over or increase the amount of brokered deposits above the amount outstanding at the date of the Consent Order without obtaining a waiver from the OCC, which may or may not be granted. 

Capital Levels and Shareholders' Equity

Shareholders' equity was $18.6 million at September 30, 2010, compared to $128.6 million a year earlier. Shareholders' equity includes the receipt of $51.5 million as a participant in the U.S. Treasury Department's Capital Purchase Program. Book value per common share was $(2.98) at third quarter-end 2010 compared to $6.71 a year earlier, and tangible book value per common share was $(3.36) at quarter-end 2010, compared to $6.26 a year earlier. At September 30, 2010, the Bank is significantly undercapitalized.

About the Company

FNB United Corp. is the Asheboro, North Carolina based bank holding company for CommunityONE Bank, N.A., and the bank's subsidiary, Dover Mortgage Company. Opened in 1907, CommunityONE Bank (MyYesBank.com) operates 45 offices in 38 communities throughout central, southern and western North Carolina. Through these subsidiaries, FNB United offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and internet banking services.

This news release may contain forward-looking statements regarding future events.  Forward-looking statements often address our expected future business and financial performance, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," or "will." These statements are only predictions and are subject to risks and uncertainties that could cause the actual events or results to differ materially. These risks and uncertainties include risks of managing our growth, changes in financial markets, changes in real estate markets, regulatory changes, changes in interest rates, changes in economic conditions being less favorable than anticipated, and loss of deposits and loan demand to other financial institutions. Additional information concerning factors that could cause actual results to be materially different from those in the forward-looking statements is contained in FNB United's filings with the Securities and Exchange Commission. FNB United does not assume any obligation to update these forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.
RESULTS OF OPERATIONS (Unaudited)            
(Dollars in thousands except share and per share data) Quarter Ended Percent Change From
  September 30, 2010 June 30, 2010 December 31, 2009 September 30, 2009 June 30, 2010 September 30, 2009
Interest Income            
Interest and fees on loans  $ 16,235  $ 18,137  $ 20,157  $ 21,132 -10.5% -23.2%
Interest and dividends on investments securities:            
Taxable income  2,603  3,120  4,392  4,689 -16.6% -44.5%
Non-taxable income  385  395  500  562 -2.5% -31.5%
Other interest income  153  107  117  115 43.0% 33.0%
Total interest income  19,376  21,759  25,166  26,498 -11.0% -26.9%
             
Interest Expense            
Deposits  6,515  6,215  7,042  7,969 4.8% -18.2%
Borrowed funds  1,303  1,534  1,831  2,112 -15.1% -38.3%
Total interest expense  7,818  7,749  8,873  10,081 0.9% -22.4%
             
Net Interest Income before Provision for Loan Losses  11,558  14,010  16,293  16,417 -17.5% -29.6%
Provision for loan losses  55,892  27,429  24,682  17,525 103.8% 218.9%
Net Interest Loss After Provision for Loan Losses  (44,334)  (13,419)  (8,389)  (1,108) -230.4% NM
             
Noninterest Income            
Service charges on deposit accounts  1,771  1,981  2,316  2,333 -10.6% -24.1%
Mortgage loan income  2,590  1,207  1,185  1,766 114.6% 46.7%
Cardholder and merchant services income  767  791  660  650 -3.0% 18.0%
Trust and investment services  436  518  500  459 -15.8% -5.0%
Bank-owned life insurance  244  257  236  363 -5.1% -32.8%
Other service charges, commissions and fees  239  236  265  303 1.3% -21.1%
Security gains  331  828  372  620 -60.0% -46.6%
Fair value swap gains  68  49  66  -- 38.8% NM
Total other-than-temporary impairment loss  --  --  --  (3,985) 0.0% 100.0%
Portion of loss recognized in other comprehensive income  --  --  --  -- 0.0% 0.0%
Net impairment loss recognized in earnings  --  --  --  (3,985) 0.0% 100.0%
Other income  95  70  125  70 35.7% 35.7%
Total noninterest income  6,541  5,937  5,725  2,579 10.2% 153.6%
             
Noninterest Expense            
Personnel expense  7,389  7,691  7,783  8,398 -3.9% -12.0%
Net occupancy expense  1,257  1,238  1,349  1,365 1.5% -7.9%
Furniture, equipment and data processing expense  1,799  1,761  1,796  1,843 2.2% -2.4%
Professional fees  1,466  810  350  487 81.0% 201.0%
Stationery, printing and supplies  121  141  166  179 -14.2% -32.4%
Advertising and marketing  348  387  519  480 -10.1% -27.5%
Other real estate owned  1,345  4,615  1,440  1,786 -70.9% -24.7%
Credit/debit card expense  416  447  416  443 -6.9% -6.1%
FDIC assessment  1,396  812  730  1,577 71.9% -11.5%
Goodwill impairment  --  --  --  52,395 0.0% -100.0%
Other expense  1,590  2,369  1,819  194 -32.9% 719.6%
Total noninterest expense  17,127  20,271  16,368  69,147 -15.5% -75.2%
Loss Before Income Taxes  (54,920)  (27,753)  (19,032)  (67,676) -97.9% 18.8%
Income taxes (benefit)/expense  (74)  (2,828)  9,000  (185) 97.4% 60.0%
Net Loss  (54,846)  (24,925)  (28,032)  (67,491) -120.0% 18.7%
Preferred stock dividends  (825)  (822)  (818)  (813) -0.4% -1.5%
Net Loss to Common Shareholders'  $ (55,671)  $ (25,747)  $ (28,850)  $ (68,304) -116.2% 18.5%
             
Loss per common share:            
Basic  $ (4.87)  $ (2.25)  $ (2.53)  $ (5.98) -116.2% 18.5%
Diluted  $ (4.87)  $ (2.25)  $ (2.53)  $ (5.98) -116.2% 18.5%
             
Cash dividends declared per common share  $ --  $ --  $ --  $ 0.05 0.0% -100.0%
             
Weighted average shares outstanding:            
Basic 11,423,657 11,424,435 11,423,058 11,420,868    
Diluted 11,423,657 11,424,435 11,423,058 11,420,868    
             
NM = Not Meaningful            
             
             
RESULTS OF OPERATIONS (Unaudited)      
(Dollars in thousands except share and per share data) Year-to-Date Percent
  September 30, 2010 September 30, 2009 Change
Interest Income      
Interest and fees on loans  $ 53,777  $ 63,995 -16.0%
Interest and dividends on investments securities:      
Taxable income  9,548  11,864 -19.5%
Non-taxable income  1,215  1,756 -30.8%
Other interest income  346  282 22.7%
Total interest income  64,886  77,897 -16.7%
       
Interest Expense      
Deposits  19,133  25,448 -24.8%
Borrowed funds  4,485  6,653 -32.6%
Total interest expense  23,618  32,101 -26.4%
       
Net Interest Income Before Provision for Loan Losses  41,268  45,796 -9.9%
Provision for loan losses  92,811  37,084 150.3%
Net Interest (Loss)/Income After Provision for Loan Losses  (51,543)  8,712 -691.6%
       
Noninterest Income      
Service charges on deposit accounts  5,690  6,640 -14.3%
Mortgage loan income  4,982  8,703 -42.8%
Cardholder and merchant services income  2,237  1,854 20.7%
Trust and investment services  1,432  1,241 15.4%
Bank owned life insurance  742  833 -10.9%
Other service charges, commissions and fees  835  890 -6.2%
Security gains  1,827  617 196.1%
Fair value swap gains  162  -- NM
Total other than temporary impairment loss  --  (4,985) 100.0%
Portion of loss recognized in other comprehensive income  --  -- 0.0%
Net impairment loss recognized in earnings  --  (4,985) 100.0%
Other income  195  302 -35.4%
Total noninterest income  18,102  16,095 12.5%
       
Noninterest Expense      
Personnel expense  22,842  25,305 -9.7%
Net occupancy expense  3,795  4,173 -9.1%
Furniture, equipment and data processing expense  5,330  5,325 0.1%
Professional fees  2,861  1,720 66.3%
Stationery, printing and supplies  380  516 -26.4%
Advertising and marketing  1,218  1,536 -20.7%
Other real estate owned  6,431  2,032 216.5%
Credit/debit card expense  1,325  1,256 5.5%
FDIC assessment  2,930  3,440 -14.8%
Goodwill impairment  --  52,395 -100.0%
Other expense  5,111  5,819 -12.2%
Total noninterest expense  52,223  103,517 -49.6%
Loss Before Income Taxes  (85,664)  (78,710) -8.8%
Income taxes benefit  (2,316)  (5,050) 54.1%
Net Loss  (83,348)  (73,660) -13.2%
Preferred stock dividends  (2,466)  (2,055) -20.0%
Net Loss to Common Shareholders'  $ (85,814)  $ (75,715) -13.3%
       
Loss per common share:      
Basic  $ (7.51)  $ (6.63) -13.2%
Diluted  $ (7.51)  $ (6.63) -13.2%
       
Cash dividends declared per common share  $ --  $ 0.05 -100.0%
       
Weighted average shares outstanding:      
Basic  11,424,038  11,414,928  
Diluted  11,424,038  11,414,928  
       
NM = Not Meaningful      
       
       
FINANCIAL CONDITION (Unaudited)            
(Dollars in thousands except share and per share data) As of Percent Change From
  September 30, 2010 June 30, 2010 December 31, 2009 September 30, 2009 June 30, 2010 September 30, 2009
ASSETS            
Cash and due from banks  $ 20,876  $ 73,535  $ 27,600  $ 32,160 -71.6% -35.1%
Interest-bearing bank balances  125,378  5,024  98  376 NM NM
Federal funds sold  --  --  --  65,064 0.0% -100.0%
Securities available-for-sale  284,077  280,120  237,630  261,811 1.4% 8.5%
Securities held-to-maturity  --  --  88,559  92,777 0.0% -100.0%
Loans held for sale  41,133  31,559  58,219  52,520 30.3% -21.7%
Loans held for investment  1,418,587  1,521,965  1,563,021  1,576,530 -6.8% -10.0%
Less: Allowance for loan losses  (66,065)  (69,760)  (49,461)  (42,349) 5.3% -56.0%
 Net loans held for investment  1,352,522  1,452,205  1,513,560  1,534,181 -6.9% -11.8%
             
Premises and equipment, net  45,945  46,858  48,115  48,852 -1.9% -6.0%
Other real estate owned  48,770  42,002  35,170  24,507 16.1% 99.0%
Core deposit premiums  4,372  4,570  4,968  5,166 -4.3% -15.4%
Bank-owned life insurance  31,700  31,432  30,883  30,612 0.9% 3.6%
Other assets  55,467  55,152  56,494  45,408 0.6% 22.2%
Total Assets  $ 2,010,240  $ 2,022,457  $ 2,101,296  $ 2,193,434 -0.6% -8.4%
LIABILITIES            
Deposits:            
Noninterest-bearing demand deposits  $ 153,916  $ 158,949  $ 152,522  $ 147,751 -3.2% 4.2%
Interest-bearing deposits:            
 Demand, savings, and money market deposits  580,002  592,614  594,377  577,778 -2.1% 0.4%
 Time deposits of $100,000 or more  566,189  484,734  425,858  445,545 16.8% 27.1%
 Other time deposits  468,699  487,463  549,371  550,668 -3.8% -14.9%
 Total deposits  1,768,806  1,723,760  1,722,128  1,721,742 2.6% 2.7%
             
Retail repurchase agreements  12,441  16,424  13,592  19,467 -24.3% -36.1%
Federal Home Loan Bank advances  120,214  119,573  166,165  167,953 0.5% -28.4%
Federal funds purchased  --  --  10,000  75,000 0.0% -100.0%
Subordinated debt  15,000  15,000  15,000  15,000 0.0% 0.0%
Junior subordinated debentures  56,702  56,702  56,702  56,702 0.0% 0.0%
Other liabilities  18,512  18,464  19,350  8,967 0.3% 106.4%
Total liabilities  1,991,675  1,949,923  2,002,937  2,064,831 2.1% -3.5%
SHAREHOLDERS' EQUITY            
Series A preferred stock  48,739  48,558  48,205  48,033 0.4% 1.5%
Common stock warrants  3,891  3,891  3,891  3,891 0.0% 0.0%
Common stock  28,561  28,561  28,566  28,566 0.0% 0.0%
Surplus  115,066  115,057  115,039  114,983 0.0% 0.1%
Retained earnings/(accumulated deficit)  (180,432)  (126,376)  (96,234)  (67,385) -42.8% -167.8%
Accumulated other comprehensive income/(loss )  2,740  2,843  (1,108)  515 -3.6% 432.0%
Total shareholders' equity  18,565  72,534  98,359  128,603 -74.4% -85.6%
Total Liabilities and Shareholders' Equity  $ 2,010,240  $ 2,022,457  $ 2,101,296  $ 2,193,434 -0.6% -8.4%
             
Shares outstanding at end of period  11,424,390  11,424,390  11,426,413  11,426,413 0.0% 0.0%
             
Book value per common share (1)  $ (2.98)  $ 1.76  $ 4.05  $ 6.71 -269.6% -144.4%
Tangible book value per common share (1)(2)  $ (3.36)  $ 1.36  $ 3.61  $ 6.26 -347.7% -153.8%
             
NM = Not Meaningful            
             
(1) - Calculation is based on number of shares outstanding at the end of the period rather than weighted average shares outstanding and does not include preferred stock or stock warrants.
(2) - Calculation excludes goodwill and core deposit premiums.
 
 
ADDITIONAL FINANCIAL INFORMATION        
(Dollars in thousands)        
(Rates / Ratios Annualized)        
  For the Quarters Ended
OPERATING PERFORMANCE: September 30, 2010 June 30, 2010 December 31, 2009 September 30, 2009
Average securities  $ 282,473  $ 266,315  $ 348,158  $ 351,254
Average loans held for sale  28,291  37,873  53,308  67,984
Average loans  1,496,579  1,538,220  1,572,025  1,590,196
Average other interest-earning assets  29,377  18,620  27,180  32,799
Average noninterest-earning assets  215,783  182,099  136,870  172,256
Total average assets  $ 2,052,503  $ 2,043,127  $ 2,137,541  $ 2,214,489
         
Average interest-bearing deposits  $ 1,603,328  $ 1,534,463  $ 1,574,068  $ 1,498,662
Average noninterest bearing deposits  159,004  161,137  152,977  156,347
Average borrowings  204,899  234,865  275,625  352,366
Average noninterest-earning liabilities  16,984  16,765  7,556  13,448
Total average liabilities  1,984,215  1,947,230  2,010,226  2,020,823
Total average shareholders' equity  68,288  95,897  127,315  193,666
Total average liabilities and shareholders' equity  $ 2,052,503  $ 2,043,127  $ 2,137,541  $ 2,214,489
         
Interest rate yield on loans 4.24% 4.63% 4.93% 5.06%
Interest rate yield on securities 4.49% 5.61% 5.88% 6.27%
Interest rate yield on interest-earning assets 4.24% 4.75% 5.05% 5.21%
         
Interest rate expense on deposits 1.61% 1.62% 1.77% 2.11%
Interest rate expense on borrowings 2.52% 2.62% 2.64% 2.38%
Interest rate expense on interest-bearing liabilities 1.72% 1.76% 1.90% 2.16%
         
Interest rate spread 2.52% 2.99% 3.15% 3.05%
         
Net interest margin 2.55% 3.08% 3.29% 3.25%
         
Other operating income / Average assets 1.26% 1.17% 1.06% 0.46%
Other operating expense / Average assets 3.31% 3.98% 3.04% 12.39%
Efficiency ratio (other operating expense / revenue before provision) 94.63% 101.62% 74.34% 364.01%
Return on average assets (10.60%) (4.89%) (5.20%) (12.09%)
Return on average equity (318.64%) (104.25%) (87.35%) (138.26%)
Average equity / Average assets 3.33% 4.69% 5.96% 8.75%
         
Tier 1 leverage 0.55% 4.06% 5.68% 7.20%
Tier 1 risk-based capital 0.73% 4.99% 6.86% 8.68%
Total risk-based capital 1.46% 9.17% 10.29% 11.52%
         
         
(Dollars in thousands)            
ADDITIONAL FINANCIAL INFORMATION            
  As of / For the Quarters Ended As of / For the Nine Months Ended
NONPERFORMING ASSETS September 30, 2010 June 30, 2010 December 31, 2009 September 30, 2009 September 30, 2010 September 30, 2009
Loans on nonaccrual status  $ 290,937  $ 225,279  $ 167,506  $ 146,227  $ 290,937  $ 146,227
Loans more than 90 days delinquent, still on accrual  997  5,140  6,908  7,670  997  7,670
Total nonperforming loans  291,934  230,419  174,414  153,897  291,934  153,897
Real estate owned (OREO)/Repossessed assets  48,924  42,103  35,238  24,634  48,924  24,634
Total nonperforming assets  $ 340,858  $ 272,522  $ 209,652  $ 178,531  $ 340,858  $ 178,531
             
Total nonperforming assets/Total assets 16.96% 13.47% 9.98% 8.14% 16.96% 8.14%
             
             
CHANGE IN THE ALLOWANCE FOR LOAN LOSSES September 30, 2010 June 30, 2010 December 31, 2009 September 30, 2009 September 30, 2010 September 30, 2009
Balance, beginning of period   $ 69,760  $ 55,895  $ 42,349  $ 36,844  $ 49,461  $ 34,720
Provision  55,892  27,429  24,657  17,500  92,811  37,084
Recoveries of loans previously charged off  909  503  414  993  1,863  1,971
Loans charged-off  (60,496)  (14,067)  (17,959)  (12,988)  (78,070)  (31,426)
Net (charge-offs)/recoveries  (59,587)  (13,564)  (17,545)  (11,995)  (76,207)  (29,455)
Balance, end of period   $ 66,065  $ 69,760  $ 49,461  $ 42,349  $ 66,065  $ 42,349
             
Net chargeoffs/Average loans outstanding (annualized) 15.80% 3.54% 2.97% 2.99% 6.66% 2.48%
Allowance for loan losses/Loans held for investment 4.66% 4.58% 3.16% 2.69% 4.66% 2.69%
             
             
DEPOSITS September 30, 2010 June 30, 2010 December 31, 2009 September 30, 2009 September 30, 2010 September 30, 2009
Noninterest-bearing  $ 153,916  $ 158,949  $ 152,522  $ 147,751  $ 153,916  $ 147,751
Interest-bearing transaction deposits:            
Checking  226,305  229,067  226,696  208,723  226,305  208,723
Money Market  310,633  319,777  326,958  327,761  310,633  327,761
Savings  43,064  43,770  40,723  41,294  43,064  41,294
Total interest-bearing transaction deposits  580,002  592,614  594,377  577,778  580,002  577,778
Interest-bearing time deposits  1,034,888  972,197  975,229  996,213  1,034,888  996,213
Total deposits  $ 1,768,806  $ 1,723,760  $ 1,722,128  $ 1,721,742  $ 1,768,806  $ 1,721,742
CONTACT:  FNB United Corp.          Mark Severson, CFO          336.626.8351