Discontinued Operations

3 Months Ended

Mar. 31, 2012

Discontinued Operation, Additional Disclosures [Abstract]

Discontinued Operations

Discontinued Operations

All operations of Dover, a subsidiary of CommunityOne, were discontinued as of March 17, 2011. Dover, acquired by FNB in 2003, originated, underwrote and closed mortgage loans for sale into the secondary market. It maintained a retail origination network based in Charlotte, North Carolina, which originated loans for properties located in North Carolina. Dover also engaged in the wholesale mortgage origination business and conducted retail mortgage origination business outside of North Carolina. Operations outside of the State of North Carolina and the wholesale mortgage origination business were discontinued in February 2011, and all remaining operations were discontinued on March 17, 2011. Dover filed for Chapter 11 bankruptcy on February 15, 2012 in the United States Bankruptcy Court for the Western District of North Carolina. All of the assets and liabilities of Dover were written off at that time.

Through Granite Corp., we also own Granite Mortgage, Inc., which ceased mortgage operations in 2009 and filed for Chapter 11 bankruptcy on February 15, 2012 in the United States Bankruptcy Court for the Western District of North Carolina. All of the assets and liabilities of Granite Mortgage, Inc. were written off at that time.

The results of operations of a component of an entity that has been disposed of shall be reported in discontinued operations if both the operations and cash flows of the component have been, or will be, eliminated from ongoing operations of the entity as a result of the disposal transaction and the entity will not have any significant continuing involvement in the operations of the component after the disposal transaction. As a result, the Consolidated Balance Sheets, Statements of Operations and Statement of Cash Flows for all periods reflect retrospective application of both Dover and Granite Mortgage's classification as a discontinued operation.

Assets and liabilities of discontinued operations at the dates indicated were as follows:

(dollars in thousands)	March 31, 2012		December 31, 2011
Assets
Loans held for sale	$	—	$	233
Premises and equipment, net	—		5
Other real estate owned	—		—
Other assets	—		7
Assets of discontinued operations	$	—	$	245
Liabilities
Other liabilities	$	—	$	1,092
Liabilities of discontinued operations	$	—	$	1,092

Net loss from discontinued operations, net of tax, at the dates indicated were as follows:

(dollars in thousands)	Three Months Ended March 31,
	2012			2011
Interest Income
Interest and fees on loans	$	—		$	43
Total interest income	—			43
Interest Expense
Other borrowed funds	—			—
Total interest expense	—			—
Net Interest Income before Provision for Loan Losses	—			43
Provision for loan losses	—			—
Net Interest Income after Provision for Loan Losses	—			43
Noninterest Income
Mortgage loan loss	—			(52		)
Other service charges, commissions and fees, net	—			(122		)
Other income	—			10
Total noninterest loss	—			(164		)
Noninterest Expense
Personnel expense	1			953
Net occupancy expense	1			69
Furniture, equipment and data processing expense	—			77
Professional fees	25			98
Stationery, printing and supplies	—			4
Advertising and marketing	—			34
Other real estate owned expense	—			122
Provision for recourse loans	—			2,178
Other expense	—			37
Total noninterest expense	27			3,572
Loss before income taxes	(27		)	(3,693		)
Income tax (benefit)/expense	—			—
Net loss from discontinued operations, net of tax	$	(27	)	$	(3,693	)

All financial information in the consolidated financial statements and notes to the consolidated financial statements reflects continuing operations, unless otherwise noted.