-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, McwGFnHi+bmxb9/wyNz5tKN6SFvfY72XkPfLNWPkMOhfaN/g2nQH6rdT8o1tJ9+D MKXceFgZZqmyHxlX+aMgDQ== 0001157523-07-000736.txt : 20070130 0001157523-07-000736.hdr.sgml : 20070130 20070130073351 ACCESSION NUMBER: 0001157523-07-000736 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20070130 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070130 DATE AS OF CHANGE: 20070130 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FNB United Corp. CENTRAL INDEX KEY: 0000764811 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 561456589 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13823 FILM NUMBER: 07562967 BUSINESS ADDRESS: STREET 1: 150 SOUTH FAYETTEVILLE STREET STREET 2: P O BOX 1328 CITY: ASHEBORO STATE: NC ZIP: 27203 BUSINESS PHONE: 3366268300 MAIL ADDRESS: STREET 1: P.O. BOX 1328 CITY: ASHEBORO STATE: NC ZIP: 27204 FORMER COMPANY: FORMER CONFORMED NAME: FNB CORP/NC DATE OF NAME CHANGE: 19920703 8-K 1 a5321528.txt FNB UNITED CORP 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of Earliest Event Reported) January 30, 2007 ---------------- FNB United Corp. --------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) North Carolina 0-13823 56-1456589 - -------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 150 South Fayetteville Street, Asheboro, North Carolina 27203 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code (336) 626-8300 -------------- N/A - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. Results of Operations and Financial Condition On January 30, 2007, FNB United Corp. issued a news release announcing the results of operations for the quarter and year ended December 31, 2006. A copy of the FNB United news release is attached hereto as Exhibit 99.1. The information in this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing made by FNB United under the Securities Act of 1933, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing. ITEM 9.01. Financial Statements and Exhibits Exhibits: 99.1 News release dated January 30, 2007 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. FNB UNITED CORP. Date: January 30, 2007 By: /s/ Jerry A. Little ------------------------------------ Jerry A. Little Treasurer and Secretary (Principal Financial and Accounting Officer) INDEX TO EXHIBITS Exhibit No. Description - ----------- ----------- 99.1 News Release dated January 30, 2007. EX-99.1 2 a5321528ex991.txt FNB UNITED CORP EXHIBIT 99.1 Exhibit 99.1 FNB United Corp. 2006 Profits Increase 23% to $12.2 Million ASHEBORO, N.C.--(BUSINESS WIRE)--Jan. 30, 2007--FNB United Corp. (NASDAQ:FNBN), the holding company for First National Bank and Trust Company and Dover Mortgage Company, today reported that exceptional loan and deposit growth both organically and through acquisitions contributed to record profits in 2006. Net income for the year increased 23% to $12.2 million, or $1.25 per diluted share, compared to $9.9 million, or $1.69 per diluted share, in 2005. For the fourth quarter of 2006, net income increased 7% to $3.0 million or $.27 per diluted share, compared to $2.80 million, or $.39 per diluted share, in the same period a year ago. "The investments we are making in our community office network are producing solid results, as demonstrated by our fourth quarter and 2006 profits," said Michael Miller, President. "Our efforts have paid off as we have increased deposits 68% and loans 63% over the past twelve months. Much of this deposit and loan growth can be attributed to our acquisitions, which have doubled our size in the last year. Our plans for 2007 are to grow into the infrastructure that we have put in place and to continue working at producing record results." The improved net income in 2006 was attributable primarily to the impact of the acquisitions of United Financial, Inc. in November of 2005, and United Financial's banking subsidiary, Alamance Bank (including its division, Hillsborough Bank), and Integrity Financial Corporation in April 2006, and its banking subsidiary, First Gaston Bank of NC (including its divisions, Catawba Valley Bank and Northwestern Bank). The results of operations for the three months ended December 31, 2006 include both United Financial, Inc. (Alamance Bank) and Integrity Financial Corporation (First Gaston Bank); while the results of operations for the year ended December 31, 2006 include twelve months of operations for United Financial, Inc. and eight months of operations for Integrity Financial Corporation. Fourth quarter and year-to-date earnings were also affected by certain impairment charges. The Company recorded a goodwill impairment charge of $1.6 million for the Company's mortgage subsidiary, Dover Mortgage Company. The Company also established a valuation reserve and recorded an impairment charge of $250,000 on capitalized mortgage loan servicing rights held by First National Bank. A portion of these charges were partially offset by a $336,000 death benefit from a bank-owned life insurance policy insuring a former employee. Earnings for the year were also affected by significant merger and conversion expenses, which totaled $1.4 million, an investment portfolio restructuring charge, as well as the recognition of charges to earnings for stock option compensation. Previously, the dilutive effect of stock options was reflected only in the financial statement footnotes. Balance sheet Total assets increased 65% to $1.82 billion at December 31, 2006, from $1.10 billion a year ago. Loans increased 63% to $1.31 billion compared to $802.72 million at December 31, 2005. Deposits increased 69% to $1.42 billion, compared to $841.61 million at December 31, 2005. Loan Sale During the fourth quarter, First National Bank sold approximately $10.4 million in nonaccruing and accruing higher risk loans acquired primarily in the merger with Integrity. The rationale for the sale was to improve the quality of the loan portfolio and to contain the financial risk of the aforementioned loans. Because the loans had previously been deemed impaired and in certain cases charged down or charged-off, the Company recognized a gain of $123,000 on the sale. Investment portfolio restructuring On October 5, 2006, FNB United announced it sold approximately $123 million of available for sale securities, or approximately 53% of the total carrying value of the investment portfolio. This sale was part of its investment portfolio restructuring designed to eliminate certain under-performing investments and to improve the net interest margin in future periods. Portions of the liquidated investments were obtained in the United Financial and Integrity acquisitions. The $559,000 pre-tax loss on this transaction was recognized in the third quarter. Net interest income For the 2006 fourth quarter, net interest income increased $6.1 million or 63.0% from the fourth quarter of 2005, driven by a 63.3% increase in average earning assets. The net interest margin experienced a slight decline to 4.18% for the 2006 quarter from 4.20% for the 2005 fourth quarter and increased from 4.14% in the third quarter of 2006. Net interest income increased $21.8 million or 63.6% for the year ended December 31, 2006 compared to 2005, reflecting the effect of a 61.1% increase in the earning assets, a rising interest rate environment and the previously discussed investment portfolio restructuring, which improved the net interest margin on a taxable equivalent basis, from 4.16% in 2005 to 4.20% in 2006. Provision for loan losses In the 2006 fourth quarter, FNB United added $220,000 to its provision for loan losses compared to $1.2 million in the same period of 2005, while the comparable year-to-date provisions were $2.5 million and $2.84 million, respectively. The allowance for loan losses was $15.9 million or 1.22% of loans held for investment at December 31, 2006 compared to $9.7 million or 1.22% at December 31, 2005. Net charge-offs to average loans improved from 0.22% in 2005 to 0.14% in 2006. As of December 31, 2006, nonperforming loans, consisting of nonaccrual loans and accruing loans past due 90 days or more, improved to $11.1 million, or 0.85% of loans held for investment, compared to $14.6 million, or 1.15% of loans held for investment at September 30, 2006. At December 31, 2005, nonperforming loans were $6.0 million, or 0.76% of loans held for investment. Noninterest income Noninterest income increased $1.7 million or 45.1% for the 2006 fourth quarter compared to the same period in 2005 and $4.2 million or 28.0% when comparing year-to-date results. These increases were due primarily to the additional fee income earned by the banks that FNB United acquired in 2006 and the recognition of $0.8 million of income in connection with certain SBIC investments. Fourth quarter and year-to-date noninterest income was also impacted by the previously discussed mortgage servicing rights impairment charge, the bank-owned life insurance death benefit and an increase in income from mortgage loan sales. Noninterest expense Because of its increased size following the United Financial and Integrity acquisitions, the goodwill impairment of Dover Mortgage and the restructuring/conversion expenses described below, noninterest expense increased $7.9 million or 96.5% in the fourth quarter and was $21.7 million or 68.3% higher for the year. The mergers of Alamance Bank and First Gaston Bank into First National Bank have resulted in restructuring and system conversion expenses, which are estimated to be approximately $1.4 million for the year ended December 31, 2006. The merged bank will continue to operate under the existing four trade names (First National Bank and Trust Company, First Gaston Bank, Catawba Valley Bank, and Northwestern Bank) over the near-term. The Company is in the process of conducting a branding study to determine the advisability of adopting a new bank name in 2007. The YES YOU CAN(R) and YES WE CAN(R) trademarks owned by First National will continue to be utilized. Accordingly, the Company anticipates additional merger-related expenditures during the next two quarters including replacement of signage, office supplies and some remaining systems conversions. Effective January 1, 2006, stock option compensation was required to be recognized as a charge to earnings. As a result, personnel expense increased $133,000 in the 2006 fourth quarter and $510,000 for the year ended December 31, 2006. During 2006, the Company implemented a modified freeze on the Company's pension plan and other post-retirement benefits. The net effect was a charge to earnings of $55,000. Performance Ratios Return on average assets and return on average equity were 0.67% and 5.70%, respectively, for the fourth quarter of 2006 compared to 1.07 % and 11.45 % for the fourth quarter of 2005. Return on tangible assets and equity (calculated by deducting average goodwill and core deposit premiums from average equity and from average assets) were 0.71 % and 13.07%, respectively, for the fourth quarter of 2006. For 2006, return on average assets and return on average equity were 0.77% and 7.01%, respectively, compared to 1.06% and 11.25 % for 2005. For 2006, returns on tangible assets and equity were 0.82% and 14.73%, respectively. FASB 158 In December 2006, the company adopted Statement of Financial Accounting Standards No. 158 (SFAS 158), new accounting guidance related to pension and other postretirement plans released by the Financial Accounting Standards Board in September 2006. This accounting standard requires companies to recognize the funded status of their postretirement plans in the statement of financial position (or balance sheet). The funded status is measured as the difference between the value of pension plan assets and the company's benefit obligations to its current and retired employees. The adoption of SFAS 158 at December 31, 2006 reduced shareholders' equity by $1.8 million. FNB United Corp. is the central North Carolina-based bank holding company for First National Bank and Trust Company (including its divisions, First Gaston Bank, Catawba Valley Bank and Northwestern Bank) and Dover Mortgage Company. Opened in 1907, First National (MyYesBank.com) operates 26 community YES! Banks in Archdale, Asheboro, Biscoe, Burlington, China Grove, Ellerbe, Graham, Greensboro, Hillsborough, Kannapolis, Laurinburg, Pinehurst, Ramseur, Randleman, Rockingham, Salisbury, Seagrove, Siler City, Southern Pines and Trinity. It also operates five community offices as First Gaston Bank (firstgaston.com) in Belmont, Dallas, Gastonia, Mt. Holly and Stanley, six community offices as Catawba Valley Bank (catawbavalleybank.com) in Hickory, Mooresville, Newton and Statesville and six community offices as Northwestern Bank of Wilkesboro (nwesternbank.com) in Boone, Millers Creek, Taylorsville, Wilkesboro and West Jefferson. Dover Mortgage Company (dovermortgage.com) operates 10 mortgage production offices in Carolina Beach, Charlotte, Goldsboro, Greensboro, Greenville, Lake Norman, Leland, Raleigh, Waxhaw and Wilmington. Through its subsidiaries, FNB United Corp. offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and internet banking services. The Federal Deposit Insurance Corporation insures deposits up to applicable limits. This news release contains forward-looking statements, including estimates of future operating results and other forward-looking financial information for FNB United. These estimates constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and involve various risks and uncertainties. Actual results may differ materially due to such factors as: (1) expected cost savings from the mergers not materializing within the expected time frame; (2) revenues following the mergers not meeting expectations; (3) competitive pressures among financial institutions increasing significantly; (4) costs or difficulties related to the integration of the businesses of FNB United, United Financial and Integrity being greater than anticipated; (5) general economic conditions being less favorable than anticipated; and (6) changes in accounting principles, policies or guidelines; (7) changes in the securities markets; (8) legislation or regulatory changes adversely affecting the business in which the Company will be engaged; and (9) other economic, competitive, governmental, regulatory and technological factors affecting FNB United specifically or the banking industry or economy generally. 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. FNB United Corp. and Subsidiaries Quarterly Earnings Release (dollars in thousands except per share data) Years Ended December 31, INCREASE % ----------------------- 2006 2005 (DECREASE) CHANGE ----------- ----------- ----------- ------ EARNINGS PER SHARE DATA: Net income: Basic $ 1.27 $ 1.73 $ (0.46) (26.6)% Diluted 1.25 1.69 (0.44) (26.0) Cash dividends paid .62 .62 0.00 - Weighted average number of shares outstanding: Basic 9,619,870 5,731,966 3,887,904 67.8 Diluted 9,715,585 5,869,023 3,846,562 65.5 PERFORMANCE RATIOS Return on assets 0.77% 1.06% Return on equity 7.01% 11.25% Return on assets - tangible 0.82% 1.09% Return on equity - tangible 14.73% 14.30% Income tax rates 37.38% 32.73% Three Months Ended December 31, INCREASE % ------------------------ 2006 2005 (DECREASE) CHANGE ------------ ----------- ----------- ------ EARNINGS PER SHARE DATA: Net income: Basic $ 0.27 $ 0.40 $ (0.13) (32.5)% Diluted .27 .39 (0.12) (30.8) Cash dividends paid .17 .17 0.00 - Weighted average number of shares outstanding: Basic 11,196,885 6,088,506 5,108,379 83.9 Diluted 11,287,954 6,199,583 5,088,371 82.1 PERFORMANCE RATIOS Return on assets 0.67% 1.07% Return on equity 5.70% 11.45% Return on assets - tangible 0.71% 1.10% Return on equity - tangible 13.07% 15.67% Income tax rates 41.37% 35.96% Three Months Ended December 31, INCREASE % ------------------ INCOME STATEMENT 2006 2005 (DECREASE) CHANGE --------- -------- ---------- ------- INTEREST INCOME: Interest and fees on loans $27,634 $14,353 $13,281 92.5 % Interest and dividends on investment securities: Taxable income 1,269 1,150 119 10.3 Non-taxable income 536 434 102 23.5 Interest on federal funds sold 1,051 269 782 290.7 --------- -------- ---------- ------ Total interest income 30,490 16,206 14,284 88.1 --------- -------- ---------- ------ INTEREST EXPENSE: Interest on deposits 12,267 5,007 7,260 145.0 Interest on borrowings 2,347 1,458 889 61.0 --------- -------- ---------- ------ Total interest expense 14,614 6,465 8,149 126.0 --------- -------- ---------- ------ NET INTEREST INCOME 15,876 9,741 6,135 63.0 Provision for loan losses 220 1,162 (942) (81.1) --------- -------- ---------- ------ NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 15,656 8,579 7,077 82.5 --------- -------- ---------- ------ NONINTEREST INCOME: Service charges on deposit accounts 2,386 1,628 758 46.6 Mortgage loan sales 1,343 971 372 38.3 Cardholder and merchant services income 512 371 141 38.0 Gain (loss) on sale of securities - - - - Trust and investment services 481 325 156 48.0 Other service charges, commissions and fees 244 219 25 11.4 Bank owned life insurance 597 159 438 275.5 Factoring operations 117 - 117 - Other income (charge) 2 165 (163) 98.8 --------- -------- ---------- ------ Total noninterest income 5,682 3,838 1,844 48.0 --------- -------- ---------- ------ NONINTEREST EXPENSE: Salaries and employee benefits 7,741 4,589 3,152 68.7 Net occupancy expense 1,238 547 691 126.3 Furniture and equipment expense 1,051 622 429 69.0 Data processing services 436 416 20 4.8 Goodwill impairment 1,625 - 1,625 0.0 Other expense 4,134 2,026 2,108 104.0 --------- -------- ---------- ------ Total noninterest expense 16,112 8,200 8,025 97.9 --------- -------- ---------- ------ INCOME BEFORE INCOME TAXES 5,113 4,217 896 63.2 Income taxes 2,115 1,417 698 49.3 --------- -------- ---------- ------ NET INCOME $ 2,998 $ 2,800 $ 198 7.1 % ========= ======== ========== ====== For the Three Months Ended SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS December 31, 2006 -------------------------- Noninterest Income Bond restructuring $ - Other Income - SBIC investment gains 83 BOLI Death Benefit 336 Mortgage Servicing Impairment (250) Gain on Loan Sale 123 Noninterest Expense Merger related expense: Personnel - Data processing - Other 62 Stock option expense 133 Goodwill impairment 1,600 Years Ended December 31, INCREASE % ----------------- 2006 2005 (DECREASE) CHANGE -------- -------- ---------- -------- INCOME STATEMENT INTEREST INCOME: Interest and fees on loans $92,565 $48,604 $43,961 90 % Interest and dividends on investment securities: Taxable income 6,791 3,689 3,102 84.1 Non-taxable income 2,081 1,677 404 24.1 Other interest income 1,932 445 1,487 334.2 -------- -------- ---------- ------- Total interest income 103,369 54,415 48,954 90.0 -------- -------- ---------- ------- INTEREST EXPENSE: Interest on deposits 38,565 15,319 23,246 151.7 Interest on borrowings 8,590 4,731 3,859 81.6 -------- -------- ---------- ------- Total interest expense 47,155 20,050 27,105 135.2 -------- -------- ---------- ------- NET INTEREST INCOME 56,214 34,365 21,849 63.6 Provision for loan losses 2,526 2,842 (316) (11.1) -------- -------- ---------- ------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 53,688 31,523 22,165 70.3 -------- -------- ---------- ------- NONINTEREST INCOME: Service charges on deposit accounts 8,214 6,057 2,157 35.6 Mortgage loan sales 4,841 4,642 199 4.3 Cardholder and merchant services income 1,908 1,347 561 41.6 Gain (loss) on sale of securities (559) - (559) - Trust and investment services 1,529 1,293 236 18.3 Other service charges, commissions and fees 987 882 105 11.9 Bank owned life insurance 1,226 597 629 105.4 Factoring operations 334 - 334 - Other income (charge) 735 108 627 (580.6) -------- -------- ---------- ------- Total noninterest income 19,215 14,926 4,289 28.7 -------- -------- ---------- ------- NONINTEREST EXPENSE: Salaries and employee benefits 28,078 18,934 9,144 48.3 Net occupancy expense 3,774 1,888 1,886 99.9 Furniture and equipment expense 3,832 2,241 1,591 71.0 Data processing services 2,432 1,473 959 65.1 Goodwill impairment 1,625 - 1,625 - Other expense 13,700 7,142 6,558 91.8 -------- -------- ---------- ------- Total noninterest expense 53,441 31,678 21,763 68.7 -------- -------- ---------- ------- INCOME BEFORE INCOME TAXES 19,462 14,771 4,691 31.8 Income taxes 7,275 4,834 2,441 50.5 -------- -------- ---------- ------- NET INCOME $12,187 $9,937 $2,250 22.6 % ======== ======== ========== ======= For the Year Ended SCHEDULE OF SELECTED ITEMS INCLUDED IN EARNINGS December 31, 2006 ---------------------- Noninterest Income Bond restructuring $(559) Other Income - SBIC investment gains 826 BOLI Death Benefit 336 Mortgage Servicing Impairment (250) Gain on Loan Sale 123 Noninterest Expense Merger related expense: Personnel 218 Data processing 492 Other 732 Stock option expense 510 Goodwill impairment 1,600 As of / For the Quarter Ended December 31, 2006 September 30, 2006 June 30, 2006 ----------------- ------------------ ------------- BALANCE SHEET ASSETS Cash and due from banks $35,225 $41,112 $27,544 Interest-bearing bank balances 42,929 5,870 30,873 Federal funds sold 30,186 17,500 18,643 Investment Securities: Available for sale 128,945 89,239 193,681 Held to maturity 42,870 42,928 42,480 Loans: Loans held for sale 20,862 20,054 21,879 Loans held for investment 1,301,840 1,276,636 1,267,323 Less allowance for loan losses (15,906) (15,813) (15,603) ----------------- ------------------ ------------- Loans, net 1,306,796 1,280,877 1,273,599 ================= ================== ============= Premises and equipment, net 45,691 45,113 43,502 Goodwill 110,956 112,926 112,926 Core deposit premium 7,378 7,583 7,788 Other assets 66,618 158,403 65,668 ----------------- ------------------ ------------- Total Assets $1,817,594 $1,801,551 $1,816,704 ================= ================== ============= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest- bearing demand deposits $158,856 $155,526 $155,071 Interest checking and savings 228,015 233,513 242,539 Money market deposits 235,340 230,655 225,415 Time deposits of $100,000 or more 365,770 344,489 352,890 Other time deposits 432,950 418,425 428,083 ----------------- ------------------ ------------- Total deposits 1,420,931 1,382,608 1,403,998 ================= ================== ============= Borrowings 167,018 191,935 187,808 Other liabilities 21,977 19,546 20,424 ----------------- ------------------ ------------- Total liabilities 1,609,926 1,594,089 1,612,230 ================= ================== ============= Total shareholders' equity 207,668 207,462 204,474 ----------------- ------------------ ------------- Total Liabilities and Shareholders' Equity $1,817,594 $1,801,551 $1,816,704 ================= ================== ============= March 31, 2006 December 31, 2005 -------------- ----------------- BALANCE SHEET ASSETS Cash and due from banks $20,751 $22,389 Interest-bearing bank balances 1,207 2,310 Federal funds sold 17,829 20,180 Investment Securities: Available for sale 114,689 110,918 Held to maturity 43,593 48,888 Loans: Loans held for sale 20,822 17,615 Loans held for investment 799,888 795,051 Less allowance for loan losses (9,713) (9,736) -------------- ----------------- Loans, net 810,997 802,930 ============== ================= Premises and equipment, net 25,422 24,670 Goodwill 31,389 31,381 Core deposit premium 1,285 1,326 Other assets 39,353 37,302 -------------- ----------------- Total Assets $1,106,515 $1,102,294 ============== ================= LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing demand deposits $105,824 $100,465 Interest checking and savings 158,439 167,322 Money market deposits 81,209 85,533 Time deposits of $100,000 or more 234,194 229,910 Other time deposits 270,895 258,379 -------------- ----------------- Total deposits 850,561 841,609 ============== ================= Borrowings 139,877 146,567 Other liabilities 12,141 11,803 -------------- ----------------- Total liabilities 1,002,579 999,979 ============== ================= Total shareholders' equity 103,936 102,315 -------------- ----------------- Total Liabilities and Shareholders' Equity $1,106,515 $1,102,294 ============== ================= FNB United Corp. stock is traded on the Nasdaq Stock Market under the symbol FNBN. CONTACT: FNB United Corp. Robert O. Bratton, 336-318-7883 -----END PRIVACY-ENHANCED MESSAGE-----