For the quarterly period ended June 30, 2012 | Commission File Number 0-13823 |
North Carolina | 56-1456589 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) | |
150 South Fayetteville Street | ||
Asheboro, North Carolina | 27203 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o | Smaller reporting company x |
(Do not check if a smaller reporting company) |
PART I. FINANCIAL INFORMATION | ||
Item 1 | ||
Item 2 | ||
Item 3 | ||
Item 4 | ||
PART II. OTHER INFORMATION | ||
Item 1 | ||
Item 1A | ||
Item 2 | ||
Item 3 | ||
Item 4 | ||
Item 5 | ||
Item 6 | ||
(in thousands, except share and per share data) | June 30, 2012 | December 31, 2011 | ||||||
Assets | ||||||||
Cash and due from banks | $ | 32,733 | $ | 35,773 | ||||
Interest-bearing bank balances | 331,146 | 517,643 | ||||||
Investment securities: | ||||||||
Available-for-sale, at estimated fair value (amortized cost of $473,438 in 2012 and $430,836 in 2011) | 477,136 | 431,306 | ||||||
Loans held for sale | 1,324 | 4,529 | ||||||
Loans held for investment | 1,281,823 | 1,217,535 | ||||||
Less: Allowance for loan losses | (38,551 | ) | (39,360 | ) | ||||
Net loans held for investment | 1,243,272 | 1,178,175 | ||||||
Premises and equipment, net | 52,893 | 53,763 | ||||||
Other real estate owned | 86,183 | 110,009 | ||||||
Core deposit premiums | 7,473 | 8,177 | ||||||
Goodwill | 4,205 | 3,905 | ||||||
Bank-owned life insurance | 38,172 | 37,515 | ||||||
Other assets | 27,224 | 28,068 | ||||||
Assets from discontinued operations | — | 245 | ||||||
Total Assets | $ | 2,301,761 | $ | 2,409,108 | ||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand deposits | $ | 262,087 | $ | 234,673 | ||||
Interest-bearing deposits: | ||||||||
Demand, savings and money market deposits | 868,335 | 849,828 | ||||||
Time deposits of $100,000 or more | 343,235 | 394,431 | ||||||
Other time deposits | 568,113 | 650,179 | ||||||
Total deposits | 2,041,770 | 2,129,111 | ||||||
Retail repurchase agreements | 11,455 | 8,838 | ||||||
Federal Home Loan Bank advances | 58,350 | 58,370 | ||||||
Junior subordinated debentures | 56,702 | 56,702 | ||||||
Other liabilities | 25,482 | 25,980 | ||||||
Liabilities from discontinued operations | — | 1,092 | ||||||
Total Liabilities | 2,193,759 | 2,280,093 | ||||||
Shareholders' Equity | ||||||||
Preferred stock Series A, $10.00 par value; authorized 200,000 shares, no shares issued and outstanding in 2012 and 2011 | — | — | ||||||
Preferred stock, $1.00 par value, authorized 15,000,000 shares, no shares issued and outstanding in 2012 and 2011 | — | — | ||||||
Common stock, no par value; authorized 2,500,000,000 shares, issued 21,587,880 shares in 2012 and 21,102,668 shares in 2011 | 461,169 | 455,166 | ||||||
Accumulated deficit | (351,179 | ) | (322,182 | ) | ||||
Accumulated other comprehensive loss | (1,988 | ) | (3,969 | ) | ||||
Total Shareholders' Equity | 108,002 | 129,015 | ||||||
Total Liabilities and Shareholders' Equity | $ | 2,301,761 | $ | 2,409,108 |
(in thousands, except share and per share data) | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest Income | |||||||||||||||
Interest and fees on loans | $ | 17,235 | $ | 12,221 | $ | 34,194 | $ | 25,282 | |||||||
Interest and dividends on investment securities: | |||||||||||||||
Taxable income | 2,887 | 2,717 | 5,571 | 4,798 | |||||||||||
Non-taxable income | — | 134 | — | 297 | |||||||||||
Other interest income | 310 | 118 | 660 | 284 | |||||||||||
Total interest income | 20,432 | 15,190 | 40,425 | 30,661 | |||||||||||
Interest Expense | |||||||||||||||
Deposits | 3,701 | 4,963 | 7,924 | 10,132 | |||||||||||
Retail repurchase agreements | 9 | 14 | 17 | 31 | |||||||||||
Federal Home Loan Bank advances | 387 | 703 | 666 | 1,401 | |||||||||||
Other borrowed funds | 286 | 318 | 589 | 696 | |||||||||||
Total interest expense | 4,383 | 5,998 | 9,196 | 12,260 | |||||||||||
Net Interest Income before Provision for Loan Losses | 16,049 | 9,192 | 31,229 | 18,401 | |||||||||||
Provision for loan losses | 7,778 | 33,580 | 10,845 | 53,763 | |||||||||||
Net Interest Income/(Loss) after Provision for Loan Losses | 8,271 | (24,388 | ) | 20,384 | (35,362 | ) | |||||||||
Noninterest Income | |||||||||||||||
Service charges on deposit accounts | 1,960 | 1,485 | 3,920 | 2,929 | |||||||||||
Mortgage loan income | 287 | (14 | ) | 323 | 107 | ||||||||||
Cardholder and merchant services income | 1,046 | 841 | 2,043 | 1,607 | |||||||||||
Trust and investment services | 256 | 350 | 458 | 752 | |||||||||||
Bank owned life insurance | 314 | 266 | 620 | 666 | |||||||||||
Other service charges, commissions and fees | 271 | 216 | 525 | 356 | |||||||||||
Securities (loss)/gains, net | 2,002 | (98 | ) | 1,956 | (84 | ) | |||||||||
Gain on fair value swap | — | 77 | — | 169 | |||||||||||
Other income | 396 | 162 | 513 | 365 | |||||||||||
Total noninterest income | 6,532 | 3,285 | 10,358 | 6,867 | |||||||||||
Noninterest Expense | |||||||||||||||
Personnel expense | 10,541 | 6,231 | 20,528 | 12,725 | |||||||||||
Net occupancy expense | 1,603 | 1,117 | 3,156 | 2,303 | |||||||||||
Furniture, equipment and data processing expense | 2,020 | 1,613 | 3,996 | 3,219 | |||||||||||
Professional fees | 1,109 | 1,628 | 2,373 | 2,879 | |||||||||||
Stationery, printing and supplies | 153 | 99 | 294 | 218 | |||||||||||
Advertising and marketing | 125 | 196 | 254 | 336 | |||||||||||
Other real estate owned expense | 12,473 | 10,586 | 17,992 | 26,773 | |||||||||||
Credit/debit card expense | 437 | 427 | 847 | 818 | |||||||||||
FDIC insurance | 1,225 | 1,575 | 1,823 | 3,438 | |||||||||||
Loan collection expense | 514 | 1,651 | 1,260 | 2,651 | |||||||||||
Merger-related expense | (840 | ) | — | 1,418 | — | ||||||||||
Core deposit intangible amortization | 352 | 199 | 704 | 397 | |||||||||||
Other expense | 3,203 | 1,008 | 5,118 | 3,323 | |||||||||||
Total noninterest expense | 32,915 | 26,330 | 59,763 | 59,080 | |||||||||||
Loss from continuing operations, before income taxes | (18,112 | ) | (47,433 | ) | (29,021 | ) | (87,575 | ) | |||||||
Income tax expense (benefit) - continuing operations | 26 | (448 | ) | (51 | ) | (576 | ) | ||||||||
Loss from continuing operations, net of tax | (18,138 | ) | (46,985 | ) | (28,970 | ) | (86,999 | ) | |||||||
Loss from discontinued operations, net of tax | — | (1,989 | ) | (27 | ) | (5,682 | ) | ||||||||
Net loss | (18,138 | ) | (48,974 | ) | (28,997 | ) | (92,681 | ) | |||||||
Dividends on preferred stock | — | (1,087 | ) | — | (2,104 | ) | |||||||||
Net loss to common shareholders | (18,138 | ) | (50,061 | ) | $ | (28,997 | ) | $ | (94,785 | ) | |||||
Weighted average number of common shares outstanding - basic and diluted | 21,190,848 | 114,265 | 21,146,758 | 114,256 | |||||||||||
Net loss per common share from continuing operations - basic and diluted | $ | (0.86 | ) | $ | (420.71 | ) | $ | (1.37 | ) | $ | (779.85 | ) | |||
Net loss per common share from discontinued operations - basic and diluted | — | (17.40 | ) | — | (49.73 | ) | |||||||||
Net loss per common share - basic and diluted | (0.86 | ) | (438.11 | ) | (1.37 | ) | (829.58 | ) |
(dollars in thousands) | Three Months Ended June 30, | ||||||
2012 | 2011 | ||||||
Net loss | $ | (18,138 | ) | $ | (48,974 | ) | |
Other comprehensive income: | |||||||
Unrealized holdings gains arising during the period on available-for-sale securities | 4,026 | 4,785 | |||||
Tax effect | (1,563 | ) | (1,890 | ) | |||
Unrealized holdings gains arising during the period on available-for-sale securities, net of tax | 2,463 | 2,895 | |||||
Reclassification adjustment for (gain) loss on available-for-sale securities included in net income | (2,002 | ) | 98 | ||||
Tax effect | 790 | (39 | ) | ||||
Reclassification adjustment for (gain) loss on available-for-sale securities included in net income, net of tax | (1,212 | ) | 59 | ||||
Other comprehensive income, net of tax: | 1,251 | 2,954 | |||||
Comprehensive loss | $ | (16,887 | ) | $ | (46,020 | ) |
(dollars in thousands) | Six Months Ended June 30, | |||||||
2012 | 2011 | |||||||
Net loss | $ | (28,997 | ) | $ | (92,681 | ) | ||
Other comprehensive income: | ||||||||
Unrealized holdings gains arising during the period on available-for-sale securities | 5,184 | 4,524 | ||||||
Tax effect | (2,020 | ) | (1,787 | ) | ||||
Unrealized holdings gains arising during the period on available-for-sale securities, net of tax | 3,164 | 2,737 | ||||||
Reclassification adjustment for (gain) loss on available-for-sale securities included in net income | (1,956 | ) | 84 | |||||
Tax effect | 773 | (33 | ) | |||||
Reclassification adjustment for (gain) loss on available-for-sale securities included in net income, net of tax | (1,183 | ) | 51 | |||||
Other comprehensive income, net of tax: | 1,981 | 2,788 | ||||||
Comprehensive loss | $ | (27,016 | ) | $ | (89,893 | ) |
Retained | Accumulated | |||||||||||||||||||||||||||||
(dollars in thousands, except share and per share data) | Common | Earnings/ | Other | |||||||||||||||||||||||||||
Preferred Stock | Common Stock | Stock | (Accumulated | Comprehensive | ||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Warrant | Deficit) | Loss | Total | |||||||||||||||||||||||
Balance, December 31, 2010 | 7,551,500 | $ | 56,424 | 114,246 | $ | 143,634 | $ | 3,891 | $ | (229,095 | ) | $ | (3,691 | ) | $ | (28,837 | ) | |||||||||||||
Comprehensive loss: | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (92,681 | ) | — | (92,681 | ) | ||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | 2,788 | 2,788 | ||||||||||||||||||||||
Total comprehensive loss | (89,893 | ) | ||||||||||||||||||||||||||||
Issuance of preferred stock, series A | 5,000,000 | 5,000 | — | — | — | — | — | 5,000 | ||||||||||||||||||||||
Accretion of discount on preferred stock | — | 378 | — | — | — | (378 | ) | — | — | |||||||||||||||||||||
Stock options: | ||||||||||||||||||||||||||||||
Compensation expense recognized | — | — | — | 12 | — | — | — | 12 | ||||||||||||||||||||||
Balance, June 30, 2011 | 12,551,500 | $ | 61,802 | 114,246 | $ | 143,646 | $ | 3,891 | $ | (322,154 | ) | $ | (903 | ) | $ | (113,718 | ) | |||||||||||||
Balance, December 31, 2011 | — | $ | — | 21,102,668 | $ | 455,166 | $ | — | $ | (322,182 | ) | $ | (3,969 | ) | $ | 129,015 | ||||||||||||||
Comprehensive loss: | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (28,997 | ) | — | (28,997 | ) | ||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | 1,981 | 1,981 | ||||||||||||||||||||||
Total comprehensive loss | (27,016 | ) | ||||||||||||||||||||||||||||
Stock options: | ||||||||||||||||||||||||||||||
Compensation expense recognized | — | — | — | 1 | — | — | — | 1 | ||||||||||||||||||||||
Expense related to 2011 issuance of common stock | — | — | — | (913 | ) | — | — | — | (913 | ) | ||||||||||||||||||||
Return of common stock not received for fractional shares rounding purposes in the 1:100 reverse stock split | — | — | (586 | ) | — | — | — | — | — | |||||||||||||||||||||
Exercise of warrants related to stock offering | — | — | 10 | — | — | — | — | — | ||||||||||||||||||||||
Stock offering, net of issuance costs of $158 | — | — | 485,788 | 6,915 | — | — | — | 6,915 | ||||||||||||||||||||||
Balance, June 30, 2012 | — | $ | — | 21,587,880 | $ | 461,169 | $ | — | $ | (351,179 | ) | $ | (1,988 | ) | $ | 108,002 |
(dollars in thousands) | Six Months Ended June 30, | |||||||
2012 | 2011 | |||||||
Operating Activities | ||||||||
Net loss | $ | (28,997 | ) | $ | (92,681 | ) | ||
Net loss from discontinued operations | (27 | ) | (5,682 | ) | ||||
Net loss from continuing operations | (28,970 | ) | (86,999 | ) | ||||
Adjustments to reconcile net loss to cash provided by operating activities: | ||||||||
Depreciation and amortization of premises and equipment | 1,957 | 1,602 | ||||||
Provision for loan losses | 10,845 | 53,763 | ||||||
Deferred income taxes | (51 | ) | (1,228 | ) | ||||
Deferred loan fees and costs, net | (3,648 | ) | (237 | ) | ||||
Premium amortization and discount accretion of investment securities, net | 4,700 | 1,815 | ||||||
Net loss/(gain) on sale of investment securities | (1,956 | ) | 84 | |||||
Amortization of core deposit premiums | 704 | 397 | ||||||
Net accretion of purchase accounting adjustments | (14,397 | ) | — | |||||
Adjustment to goodwill | (300 | ) | — | |||||
Stock compensation expense | 1 | 12 | ||||||
Increase in cash surrender value of bank-owned life insurance, net | (657 | ) | (543 | ) | ||||
Loans held for sale: | ||||||||
Origination of loans held for sale | (3,039 | ) | — | |||||
Net proceeds from sale of loans held for sale | 1,749 | 107 | ||||||
Net loss/(gain) on sale of loans held for sale | (34 | ) | (107 | ) | ||||
Mortgage servicing rights capitalized | — | 145 | ||||||
Net loss on sales and write-downs of other real estate owned | 14,470 | 24,242 | ||||||
Changes in assets and liabilities: | ||||||||
(Increase)/decrease in accrued interest receivable and other assets | (605 | ) | 15,046 | |||||
Decrease in accrued interest payable and other liabilities | (498 | ) | (2,126 | ) | ||||
Net cash (used in)/provided by operating activities of continuing operations | (19,729 | ) | 5,973 | |||||
Net effect of discontinued operations | (874 | ) | 33,103 | |||||
Net cash (used in)/provided by operating activities | (20,603 | ) | 39,076 | |||||
Investing Activities | ||||||||
Available-for-sale securities: | ||||||||
Proceeds from sales | 118,049 | 30,117 | ||||||
Proceeds from maturities, calls and principal repayments | 83,454 | 23,687 | ||||||
Purchases | (245,492 | ) | (126,446 | ) | ||||
Net (increase)/decrease in loans held for investment | (69,984 | ) | 114,460 | |||||
Proceeds from sales of other real estate owned | 23,878 | 10,399 | ||||||
Purchases of premises and equipment | (1,163 | ) | (139 | ) | ||||
Proceeds from sales of premises and equipment | 34 | — | ||||||
Expenses paid in 2012 related to 2011 capital raise | (913 | ) | — | |||||
Net cash (used in) provided by investing activities of continuing operations | (92,137 | ) | 52,078 | |||||
Net effect of discontinued operations | — | 70 | ||||||
Net cash (used in) provided by investing activities | (92,137 | ) | 52,148 | |||||
Financing Activities | ||||||||
Net decrease in deposits | (86,309 | ) | (91,436 | ) | ||||
Increase in retail repurchase agreements | 2,617 | 428 | ||||||
Decrease in Federal Home Loan Bank advances | (20 | ) | (19 | ) | ||||
Issuance of common stock, net of expense | 6,915 | — | ||||||
Net cash used in financing activities of continuing operations | (76,797 | ) | (91,027 | ) | ||||
Net effect of discontinued operations | — | — | ||||||
Net cash used in financing activities | (76,797 | ) | (91,027 | ) | ||||
Net (Decrease) Increase in Cash and Cash Equivalents | (189,537 | ) | 197 | |||||
Cash and Cash Equivalents at Beginning of Period | 553,416 | 160,594 | ||||||
Cash and Cash Equivalents at End of Period | $ | 363,879 | $ | 160,791 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 9,657 | $ | 11,832 | ||||
Noncash transactions: | ||||||||
Foreclosed loans transferred to other real estate owned | 15,020 | 73,967 | ||||||
Loans to facilitate the sale of other real estate owned | 778 | — | ||||||
Transfer of loans from held for investment to held for sale | 600 | — | ||||||
Transfer of loans from held for sale to held for investment | (3,885 | ) | — | |||||
Unrealized securities gains/(losses), net of income taxes | 1,981 | 2,788 | ||||||
Conversion of subordinated debt to preferred stock | — | (5,000 | ) | |||||
Issuance of preferred stock in subordinated debt conversion | — | 5,000 |
(dollars in thousands) | June 30, 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 |
(dollars in thousands) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Interest Income | ||||||||||||||||
Interest and fees on loans | $ | — | $ | 13 | $ | — | $ | 56 | ||||||||
Total interest income | — | 13 | — | 56 | ||||||||||||
Interest Expense | ||||||||||||||||
Other borrowed funds | — | — | — | — | ||||||||||||
Total interest expense | — | — | — | — | ||||||||||||
Net Interest Income before Provision for Loan Losses | — | 13 | — | 56 | ||||||||||||
Provision for loan losses | — | — | — | — | ||||||||||||
Net Interest Income after Provision for Loan Losses | — | 13 | — | 56 | ||||||||||||
Noninterest Income | ||||||||||||||||
Mortgage loan loss | — | (113 | ) | — | (165 | ) | ||||||||||
Other service charges, commissions and fees, net | — | (2 | ) | — | (11 | ) | ||||||||||
Other income | — | — | — | 10 | ||||||||||||
Total noninterest loss | — | (115 | ) | — | (166 | ) | ||||||||||
Noninterest Expense | ||||||||||||||||
Personnel expense | — | 490 | 1 | 1,443 | ||||||||||||
Net occupancy expense | — | 142 | 1 | 211 | ||||||||||||
Furniture, equipment and data processing expense | — | 94 | — | 171 | ||||||||||||
Professional fees | — | 80 | 25 | 177 | ||||||||||||
Stationery, printing and supplies | — | 3 | — | 8 | ||||||||||||
Advertising and marketing | — | (6 | ) | — | 28 | |||||||||||
Other real estate owned expense | — | 45 | — | 166 | ||||||||||||
Provision for recourse loans | — | 1,146 | — | 3,324 | ||||||||||||
Other expense | — | 106 | — | 257 | ||||||||||||
Total noninterest expense | — | 2,100 | 27 | 5,785 | ||||||||||||
Loss before income taxes | — | (2,202 | ) | (27 | ) | (5,895 | ) | |||||||||
Income tax (benefit)/expense | — | (213 | ) | — | (213 | ) | ||||||||||
Net loss from discontinued operations, net of tax | $ | — | $ | (1,989 | ) | $ | (27 | ) | $ | (5,682 | ) |
June 30, 2012 | ||||||||||||||||
(dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Obligations of: | ||||||||||||||||
U.S. Treasury and government agencies | $ | 6,864 | $ | 232 | $ | — | $ | 7,096 | ||||||||
U.S. government sponsored enterprises | 3,586 | 30 | — | 3,616 | ||||||||||||
States and political subdivisions | 5,988 | 78 | — | 6,066 | ||||||||||||
Residential mortgage-backed securities-GSE | 381,857 | 3,904 | 259 | 385,502 | ||||||||||||
Residential mortgage-backed securities-Private | 32,797 | 652 | 769 | 32,680 | ||||||||||||
Commercial mortgage-backed securities-Private | 5,354 | — | 15 | 5,339 | ||||||||||||
Corporate notes | 36,992 | — | 155 | 36,837 | ||||||||||||
Total | $ | 473,438 | $ | 4,896 | $ | 1,198 | $ | 477,136 | ||||||||
December 31, 2011 | ||||||||||||||||
(dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Obligations of: | ||||||||||||||||
U.S. Treasury and government agencies | $ | 7,081 | $ | 107 | $ | — | $ | 7,188 | ||||||||
U.S. government sponsored enterprises | 32,479 | 36 | 151 | 32,364 | ||||||||||||
States and political subdivisions | 6,075 | 16 | 1 | 6,090 | ||||||||||||
Residential mortgage-backed securities-GSE | 348,884 | 2,611 | 1,222 | 350,273 | ||||||||||||
Residential mortgage-backed securities-Private | 33,111 | 73 | 967 | 32,217 | ||||||||||||
Corporate notes | 3,206 | — | 32 | 3,174 | ||||||||||||
Total | $ | 430,836 | $ | 2,843 | $ | 2,373 | $ | 431,306 |
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||
(dollars in thousands) | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||
June 30, 2012 | ||||||||||||||||||||
Residential mortgage-backed securities-GSE | $ | 43,983 | $ | 167 | $ | 12,594 | $ | 92 | $ | 56,577 | $ | 259 | ||||||||
Residential mortgage-backed securities-Private | 13,061 | 769 | — | — | 13,061 | 769 | ||||||||||||||
Commercial mortgage-backed securities-Private | 5,339 | 15 | — | — | 5,339 | 15 | ||||||||||||||
Corporate notes | 36,837 | 155 | — | — | 36,837 | 155 | ||||||||||||||
Total | $ | 99,220 | $ | 1,106 | $ | 12,594 | $ | 92 | $ | 111,814 | $ | 1,198 | ||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||
(dollars in thousands) | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | Estimated Fair Value | Gross Unrealized Losses | ||||||||||||||
December 31, 2011 | ||||||||||||||||||||
Obligations of: | ||||||||||||||||||||
U.S. government sponsored enterprises | $ | 21,248 | $ | 151 | $ | — | $ | — | $ | 21,248 | $ | 151 | ||||||||
States and political subdivisions | 1,907 | 1 | — | — | 1,907 | 1 | ||||||||||||||
Residential mortgage-backed securities-GSE | 89,730 | 1,042 | 16,552 | 180 | 106,282 | 1,222 | ||||||||||||||
Residential mortgage-backed securities-Private | 21,519 | 967 | — | — | 21,519 | 967 | ||||||||||||||
Corporate notes | 3,173 | 32 | — | — | 3,173 | 32 | ||||||||||||||
Total | $ | 137,577 | $ | 2,193 | $ | 16,552 | $ | 180 | $ | 154,129 | $ | 2,373 |
Available-for-Sale | ||||||||
(dollars in thousands) | Amortized Cost | Estimated Fair Value | ||||||
Due in one year or less | $ | 8,436 | $ | 8,407 | ||||
Due after one one year through five years | 33,381 | 33,459 | ||||||
Due after five years through 10 years | 4,749 | 4,653 | ||||||
Due after 10 years | 6,864 | 7,096 | ||||||
Total | 53,430 | 53,615 | ||||||
Mortgage-backed securities | 420,008 | 423,521 | ||||||
Total | $ | 473,438 | $ | 477,136 |
(dollars in thousands) | June 30, 2012 | December 31, 2011 | |||||||||||||||||
Granite Purchased Loans | Total Loans | Granite Purchased Loans | Total Loans | ||||||||||||||||
Loans held for sale | $ | — | $ | 1,324 | $ | — | $ | — | $ | 4,529 | |||||||||
Loans held for investment: | |||||||||||||||||||
Commercial and agricultural | $ | 26,560 | $ | 78,367 | $ | 36,933 | $ | 95,089 | |||||||||||
Real estate - construction | 5,671 | 75,576 | 7,641 | 92,806 | |||||||||||||||
Real estate - mortgage: | |||||||||||||||||||
1-4 family residential | 76,523 | 589,972 | 87,484 | 453,725 | |||||||||||||||
Commercial | 213,750 | 493,721 | 239,621 | 531,383 | |||||||||||||||
Consumer | 1,244 | 44,187 | 1,809 | 44,532 | |||||||||||||||
Gross loans held for investment | 323,748 | 1,281,823 | 373,488 | 1,217,535 | |||||||||||||||
Less: Allowance for loan losses | (3,336 | ) | (38,551 | ) | — | (39,360 | ) | ||||||||||||
Loans held for investment, net of allowance | $ | 320,412 | $ | 1,243,272 | $ | 373,488 | $ | 1,178,175 |
(dollars in thousands) | June 30, 2012 | December 31, 2011 | ||||||
Loans on nonaccrual status: | ||||||||
Held for sale | $ | — | $ | 4,529 | ||||
Held for investment | 95,110 | 98,444 | ||||||
Loans more than 90 days delinquent, still on accrual | 427 | 3,000 | ||||||
Real estate owned/repossessed assets | 86,400 | 110,386 | ||||||
Total nonperforming assets | $ | 181,937 | $ | 216,359 |
June 30, 2012 | December 31, 2011 | |||||||||||||
(dollars in thousands) | Balance | Associated Reserves | Balance | Associated Reserves | ||||||||||
Impaired loans, held for sale | $ | — | $ | — | $ | 4,529 | $ | — | ||||||
Impaired loans, not individually reviewed for impairment | 6,750 | — | 5,127 | — | ||||||||||
Impaired loans, individually reviewed, with no impairment | 55,160 | — | 53,884 | — | ||||||||||
Impaired loans, individually reviewed, with impairment | 40,778 | 8,724 | 42,357 | 11,090 | ||||||||||
Total impaired loans, excluding purchased impaired * | $ | 102,688 | $ | 8,724 | $ | 105,897 | $ | 11,090 | ||||||
Purchased impaired loans with subsequent deterioration | $ | 36,659 | 3,336 | $ | — | — | ||||||||
Purchased impaired loans with no subsequent deterioration | $ | 250,433 | — | $ | 330,836 | — | ||||||||
Total Reserves | $ | 12,060 | $ | 11,090 | ||||||||||
Average impaired loans calculated using a simple average | $ | 107,263 | $ | 112,600 |
• | If unsecured, the loan must be charged off in full. |
• | If secured, the outstanding principal balance of the loan should be charged down to the net liquidation value of the collateral. |
• | No regularly scheduled payment has been made within four months and the determination is made that any further payment is unlikely, or |
• | The loan is unsecured, the borrower files for bankruptcy protection and there is no other (guarantor, etc.) support from an entity outside of the bankruptcy proceedings. |
For Three Months Ended June 30, 2012 | For Three Months Ended June 30, 2011 | ||||||||||||||||||||
(dollars in thousands) | Number | Recorded | Contract | Number | Recorded | Contract | |||||||||||||||
of Loans | Investment | Pricing | of Loans | Investment | Pricing | ||||||||||||||||
Commercial and agricultural | — | $ | — | $ | — | — | $ | — | $ | — | |||||||||||
Real estate - construction | — | — | — | — | — | — | |||||||||||||||
Real estate - mortgage: | |||||||||||||||||||||
1-4 family residential | 6 | 1,715 | 1,746 | — | — | — | |||||||||||||||
Commercial | — | — | — | — | — | — | |||||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||||
Total | 6 | $ | 1,715 | $ | 1,746 | — | $ | — | $ | — |
For Six Months Ended June 30, 2012 | For Six Months Ended June 30, 2011 | ||||||||||||||||||||||
(dollars in thousands) | Number | Recorded | Contract | Number | Recorded | Contract | |||||||||||||||||
of Loans | Investment | Pricing | of Loans | Investment | Pricing | ||||||||||||||||||
Commercial and agricultural | — | $ | — | $ | — | — | $ | — | $ | — | |||||||||||||
Real estate - construction | — | — | — | 4 | 13,342 | 5,813 | |||||||||||||||||
Real estate - mortgage: | |||||||||||||||||||||||
1-4 family residential | 7 | 1,865 | 1,896 | — | — | — | — | ||||||||||||||||
Commercial | 1 | 3,800 | 4,050 | 1 | — | 321 | — | 350 | |||||||||||||||
Consumer | — | — | — | — | — | — | — | — | |||||||||||||||
Total | 8 | $ | 5,665 | $ | 5,946 | 5 | $ | 13,663 | $ | 6,163 |
At June 30, 2012 | ||||||||||||||||
(dollars in thousands) | Purchased Impaired | Purchased Contractual | Total Purchased Loans | Unpaid Principal Balance | ||||||||||||
Commercial and agricultural | $ | 20,277 | $ | 6,283 | $ | 26,560 | $ | 26,793 | ||||||||
Real estate - construction | 5,671 | — | 5,671 | 6,101 | ||||||||||||
Real estate - mortgage: | ||||||||||||||||
1-4 family residential | 46,150 | 30,373 | 76,523 | 79,980 | ||||||||||||
Commercial | 213,750 | — | 213,750 | 224,208 | ||||||||||||
Consumer | 1,244 | — | 1,244 | 1,434 | ||||||||||||
Total | $ | 287,092 | $ | 36,656 | $ | 323,748 | $ | 338,516 |
At December 31, 2011 | ||||||||||||||||
(dollars in thousands) | Purchased Impaired | Purchased Contractual | Total Purchased Loans | Unpaid Principal Balance | ||||||||||||
Commercial and agricultural | $ | 28,872 | $ | 8,061 | $ | 36,933 | $ | 39,531 | ||||||||
Real estate - construction | 7,641 | — | 7,641 | 8,413 | ||||||||||||
Real estate - mortgage: | ||||||||||||||||
1-4 family residential | 52,894 | 34,590 | 87,484 | 93,310 | ||||||||||||
Commercial | 239,621 | — | 239,621 | 261,076 | ||||||||||||
Consumer | 1,808 | 1 | 1,809 | 1,800 | ||||||||||||
Total | $ | 330,836 | $ | 42,652 | $ | 373,488 | $ | 404,130 |
For Six Months Ended June 30, 2012 | For Six Months Ended December 31, 2011 | |||||||||||||||
Purchased Impaired | Purchased Impaired | |||||||||||||||
(dollars in thousands) | Carrying Amount | Future Accretion | Carrying Amount | Future Accretion | ||||||||||||
Balance, beginning of period | $ | 330,836 | $ | 47,804 | $ | — | $ | — | ||||||||
Addition from Bank of Granite Corp acquisition | — | — | 351,121 | 52,581 | ||||||||||||
Accretion | 11,263 | (11,263 | ) | 4,777 | (4,777 | ) | ||||||||||
Reclass from non-accretable | — | 4,592 | — | — | ||||||||||||
Payments received | (50,901 | ) | — | (24,467 | ) | — | ||||||||||
Foreclosed and transferred to OREO | (4,106 | ) | — | (595 | ) | — | ||||||||||
Subtotal before provision | 287,092 | 41,133 | 330,836 | 47,804 | ||||||||||||
Provision for credit losses | (3,336 | ) | — | — | — | |||||||||||
Balance, end of period | $ | 283,756 | $ | 41,133 | $ | 330,836 | $ | 47,804 |
For Three Months Ended | For Six Months Ended | |||||||||||||||
(dollars in thousands) | June 30, | June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Balance, beginning of period | $ | 39,795 | $ | 68,729 | $ | 39,360 | $ | 93,687 | ||||||||
Provision for losses charged to continuing operations | 7,778 | 33,580 | 10,845 | 53,763 | ||||||||||||
Net charge-offs: | ||||||||||||||||
Charge-offs | (10,285 | ) | (45,662 | ) | (14,300 | ) | (91,571 | ) | ||||||||
Recoveries | 1,263 | 2,719 | 2,646 | 3,487 | ||||||||||||
Net charge-offs | (9,022 | ) | (42,943 | ) | (11,654 | ) | (88,084 | ) | ||||||||
Provision for losses charged to discontinued operations | — | — | — | — | ||||||||||||
Balance, end of period | $ | 38,551 | $ | 59,366 | $ | 38,551 | $ | 59,366 | ||||||||
Annualized net charge-offs during the period to average loans | 2.83 | % | 15.06 | % | 1.87 | % | 14.76 | % | ||||||||
Annualized net charge-offs during the period to ALL | 94.13 | % | 290.14 | % | 60.79 | % | 299.21 | % | ||||||||
Allowance for loan losses to loans held for investment (1) | 3.01 | % | 5.83 | % | 3.01 | % | 5.83 | % |
(dollars in thousands) | Pass | Special Mention | Substandard* | Doubtful* | ||||||||||||||||
(Ratings 1-5) | (Rating 6) | (Rating 7) | (Rating 8) | Total | ||||||||||||||||
Commercial and agricultural | $ | 64,091 | $ | 4,591 | $ | 9,685 | $ | — | $ | 78,367 | ||||||||||
Real estate - construction | 44,799 | 3,266 | 27,511 | — | 75,576 | |||||||||||||||
Real estate - mortgage: | ||||||||||||||||||||
1-4 family residential | 533,265 | 19,412 | 37,070 | 225 | 589,972 | |||||||||||||||
Commercial | 312,648 | 64,189 | 116,757 | 127 | 493,721 | |||||||||||||||
Consumer | 43,222 | 197 | 681 | 87 | 44,187 | |||||||||||||||
Total | $ | 998,025 | $ | 91,655 | $ | 191,704 | $ | 439 | $ | 1,281,823 |
(dollars in thousands) | Pass | Special Mention | Substandard* | Doubtful* | ||||||||||||||||
(Ratings 1-5) | (Rating 6) | (Rating 7) | (Rating 8) | Total | ||||||||||||||||
Commercial and agricultural | $ | 77,305 | $ | 7,373 | $ | 9,921 | $ | 490 | $ | 95,089 | ||||||||||
Real estate - construction | 53,105 | 5,797 | 33,886 | 18 | 92,806 | |||||||||||||||
Real estate - mortgage: | ||||||||||||||||||||
1-4 family residential | 385,022 | 25,864 | 42,630 | 209 | 453,725 | |||||||||||||||
Commercial | 351,731 | 91,364 | 87,971 | 317 | 531,383 | |||||||||||||||
Consumer | 43,487 | 279 | 387 | 379 | 44,532 | |||||||||||||||
Total | $ | 910,650 | $ | 130,677 | $ | 174,795 | $ | 1,413 | $ | 1,217,535 |
Real Estate - Mortgage | ||||||||||||||||||||||||
(dollars in thousands) | Commercial and Agricultural | Real Estate - Construction | 1-4 Family Residential | Commercial | Consumer | Total | ||||||||||||||||||
ALL: | ||||||||||||||||||||||||
Beginning balance at April 1, 2012 | $ | 6,005 | $ | 10,912 | $ | 12,103 | $ | 8,799 | $ | 1,976 | $ | 39,795 | ||||||||||||
Charge-offs | (937 | ) | (4,521 | ) | (2,454 | ) | (954 | ) | (1,419 | ) | (10,285 | ) | ||||||||||||
Recoveries | 235 | 244 | 244 | 262 | 278 | 1,263 | ||||||||||||||||||
Provision | 1,848 | 4,685 | (1,109 | ) | 1,111 | 1,243 | 7,778 | |||||||||||||||||
Ending balance at June 30, 2012 | $ | 7,151 | $ | 11,320 | $ | 8,784 | $ | 9,218 | $ | 2,078 | $ | 38,551 |
Real Estate - Mortgage | ||||||||||||||||||||||||
(dollars in thousands) | Commercial and Agricultural | Real Estate - Construction | 1-4 Family Residential | Commercial | Consumer | Total | ||||||||||||||||||
ALL: | ||||||||||||||||||||||||
Beginning balance at April 1, 2011 | $ | 8,719 | $ | 32,947 | $ | 9,751 | $ | 15,668 | $ | 1,644 | $ | 68,729 | ||||||||||||
Charge-offs | (4,192 | ) | (21,510 | ) | (4,585 | ) | (14,002 | ) | (1,373 | ) | (45,662 | ) | ||||||||||||
Recoveries | 467 | 714 | 469 | 693 | 376 | 2,719 | ||||||||||||||||||
Provision | 1,533 | 16,268 | 3,395 | 11,260 | 1,124 | 33,580 | ||||||||||||||||||
Ending balance at June 30, 2011 | $ | 6,527 | $ | 28,419 | $ | 9,030 | $ | 13,619 | $ | 1,771 | $ | 59,366 |
Real Estate - Mortgage | ||||||||||||||||||||||||
(dollars in thousands) | Commercial and Agricultural | Real Estate - Construction | 1-4 Family Residential | Commercial | Consumer | Total | ||||||||||||||||||
ALL: | ||||||||||||||||||||||||
Beginning balance at January 1, 2012 | $ | 5,776 | $ | 11,995 | $ | 8,885 | $ | 11,063 | $ | 1,641 | $ | 39,360 | ||||||||||||
Charge-offs | (1,631 | ) | (6,296 | ) | (3,159 | ) | (992 | ) | (2,222 | ) | (14,300 | ) | ||||||||||||
Recoveries | 489 | 845 | 377 | 336 | 599 | 2,646 | ||||||||||||||||||
Provision | 2,517 | 4,776 | 2,681 | (1,189 | ) | 2,060 | 10,845 | |||||||||||||||||
Ending balance at June 30, 2012 | $ | 7,151 | $ | 11,320 | $ | 8,784 | $ | 9,218 | $ | 2,078 | $ | 38,551 |
Real Estate - Mortgage | ||||||||||||||||||||||||
(dollars in thousands) | Commercial and Agricultural | Real Estate - Construction | 1-4 Family Residential | Commercial | Consumer | Total | ||||||||||||||||||
ALL: | ||||||||||||||||||||||||
Beginning balance at January 1, 2011 | $ | 11,144 | $ | 46,792 | $ | 7,742 | $ | 26,851 | $ | 1,158 | $ | 93,687 | ||||||||||||
Charge-offs | (8,467 | ) | (44,172 | ) | (6,621 | ) | (30,180 | ) | (2,131 | ) | (91,571 | ) | ||||||||||||
Recoveries | 533 | 904 | 562 | 742 | 746 | 3,487 | ||||||||||||||||||
Provision | 3,317 | 24,895 | 7,347 | 16,206 | 1,998 | 53,763 | ||||||||||||||||||
Ending balance at June 30, 2011 | $ | 6,527 | $ | 28,419 | $ | 9,030 | $ | 13,619 | $ | 1,771 | $ | 59,366 |
Real Estate - Mortgage | ||||||||||||||||||||||||
(dollars in thousands) | Commercial and Agricultural | Real Estate - Construction | 1-4 Family Residential | Commercial | Consumer | Total | ||||||||||||||||||
ALL: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,208 | $ | 2,247 | $ | 2,056 | $ | 3,012 | $ | 201 | $ | 8,724 | ||||||||||||
Collectively evaluated for impairment | 4,105 | 9,002 | 6,093 | 5,488 | 1,803 | 26,491 | ||||||||||||||||||
PI loans evaluated for credit impairment | 1,838 | 71 | 635 | 718 | 74 | 3,336 | ||||||||||||||||||
PI loans with no credit deterioration | — | — | — | — | — | — | ||||||||||||||||||
Total ALL evaluated for impairment | $ | 7,151 | $ | 11,320 | $ | 8,784 | $ | 9,218 | $ | 2,078 | $ | 38,551 | ||||||||||||
Loans held for investment | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,028 | $ | 24,187 | $ | 20,778 | $ | 47,744 | $ | 201 | $ | 95,938 | ||||||||||||
Collectively evaluated for impairment | 55,062 | 45,716 | 523,044 | 232,229 | 42,742 | 898,793 | ||||||||||||||||||
PI loans with subsequent credit deterioration | 18,911 | 2,188 | 3,179 | 12,307 | 74 | 36,659 | ||||||||||||||||||
PI loans with no credit deterioration | 1,366 | 3,485 | 42,971 | 201,441 | 1,170 | 250,433 | ||||||||||||||||||
Total loans evaluated for impairment | $ | 78,367 | $ | 75,576 | $ | 589,972 | $ | 493,721 | $ | 44,187 | $ | 1,281,823 |
Real Estate - Mortgage | ||||||||||||||||||||||||
(dollars in thousands) | Commercial and Agricultural | Real Estate - Construction | 1-4 Family Residential | Commercial | Consumer | Total | ||||||||||||||||||
ALL: | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 1,506 | $ | 4,899 | $ | 2,140 | $ | 2,415 | $ | 130 | $ | 11,090 | ||||||||||||
Collectively evaluated for impairment | 4,270 | 7,096 | 6,745 | 8,648 | 1,511 | 28,270 | ||||||||||||||||||
PI loans evaluated for credit impairment | — | — | — | — | — | — | ||||||||||||||||||
PI loans with no credit deterioration | — | — | — | — | — | — | ||||||||||||||||||
Total ALL evaluated for impairment | $ | 5,776 | $ | 11,995 | $ | 8,885 | $ | 11,063 | $ | 1,641 | $ | 39,360 | ||||||||||||
Loans held for investment | ||||||||||||||||||||||||
Individually evaluated for impairment | $ | 3,890 | $ | 30,460 | $ | 24,886 | $ | 36,835 | $ | 170 | $ | 96,241 | ||||||||||||
Collectively evaluated for impairment | 62,327 | 54,705 | 375,945 | 254,927 | 42,554 | 790,458 | ||||||||||||||||||
PI loans with subsequent credit deterioration | — | — | — | — | — | — | ||||||||||||||||||
PI loans with no credit deterioration | 28,872 | 7,641 | 52,894 | 239,621 | 1,808 | 330,836 | ||||||||||||||||||
Total loans evaluated for impairment | $ | 95,089 | $ | 92,806 | $ | 453,725 | $ | 531,383 | $ | 44,532 | $ | 1,217,535 |
(dollars in thousands) | June 30, | December 31, | ||||||
2012 | 2011 | |||||||
Loans held for investment: | ||||||||
Commercial and agricultural | $ | 2,855 | $ | 4,636 | ||||
Real estate - construction | 24,853 | 30,844 | ||||||
Real estate - mortgage: | ||||||||
1-4 family residential | 22,300 | 26,048 | ||||||
Commercial | 44,469 | 36,666 | ||||||
Consumer | 633 | 250 | ||||||
Total | $ | 95,110 | $ | 98,444 |
(dollars in thousands) | June 30, | December 31, | ||||||
2012 | 2011 | |||||||
Loans held for sale: | ||||||||
Real estate - construction | $ | — | $ | 1,807 | ||||
Real estate - mortgage: | ||||||||
1-4 family residential | — | 517 | ||||||
Commercial | — | 2,205 | ||||||
Consumer | — | — | ||||||
Total | $ | — | $ | 4,529 |
Past Due | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | PI Loans | 90 or more | ||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 or More Days | Total | Current | No credit deterior- ation | Credit deterior-ation | Total Loans | days past due and Accruing | ||||||||||||||||||||||||||||
Commercial and agricultural | $ | 893 | $ | 437 | $ | 2,681 | $ | 4,011 | $ | 54,079 | $ | 1,366 | $ | 18,911 | $ | 78,367 | $ | 79 | ||||||||||||||||||
Real estate - construction | 1,353 | 4,813 | 12,844 | 19,010 | 50,893 | 3,485 | 2,188 | 75,576 | — | |||||||||||||||||||||||||||
Real estate - mortgage: | ||||||||||||||||||||||||||||||||||||
1-4 family residential | 5,037 | 823 | 13,009 | 18,869 | 524,953 | 42,971 | 3,179 | 589,972 | — | |||||||||||||||||||||||||||
Commercial | 4,727 | 1,332 | 29,674 | 35,733 | 244,240 | 201,441 | 12,307 | 493,721 | 348 | |||||||||||||||||||||||||||
Consumer | 464 | 17 | 1 | 482 | 42,461 | 1,170 | 74 | 44,187 | ||||||||||||||||||||||||||||
Total | $ | 12,474 | $ | 7,422 | $ | 58,209 | $ | 78,105 | $ | 916,626 | $ | 250,433 | $ | 36,659 | $ | 1,281,823 | $ | 427 |
Past Due | ||||||||||||||||||||||||||||||||||||
(dollars in thousands) | PI Loans | 90 or more | ||||||||||||||||||||||||||||||||||
30-59 Days | 60-89 Days | 90 or More Days | Total | Current | No credit deterior- ation | Credit deterior-ation | Total Loans | days past due and Accruing | ||||||||||||||||||||||||||||
Commercial and agricultural | $ | 335 | $ | 425 | $ | 2,755 | $ | 3,515 | $ | 62,702 | $ | 28,872 | $ | — | $ | 95,089 | $ | 305 | ||||||||||||||||||
Real estate - construction | 1,850 | 2,206 | 21,438 | 25,494 | 59,671 | 7,641 | — | 92,806 | 1,400 | |||||||||||||||||||||||||||
Real estate - mortgage: | ||||||||||||||||||||||||||||||||||||
1-4 family residential | 4,544 | 2,253 | 14,125 | 20,922 | 379,909 | 52,894 | — | 453,725 | 292 | |||||||||||||||||||||||||||
Commercial | 2,926 | 6,645 | 16,330 | 25,901 | 265,861 | 239,621 | — | 531,383 | 1,003 | |||||||||||||||||||||||||||
Consumer | 740 | 278 | 63 | 1,081 | 41,643 | 1,808 | — | 44,532 | — | |||||||||||||||||||||||||||
Total | $ | 10,395 | $ | 11,807 | $ | 54,711 | $ | 76,913 | $ | 809,786 | $ | 330,836 | $ | — | $ | 1,217,535 | $ | 3,000 |
Unpaid | ||||||||||||
(dollars in thousands) | Recorded | Principal | Related | |||||||||
Investment | Balance | Allowance | ||||||||||
With no related allowance recorded: | ||||||||||||
Commercial and agricultural | $ | 1,254 | $ | 1,320 | $ | — | ||||||
Real estate - construction | 9,496 | 14,027 | — | |||||||||
Real estate - mortgage: | ||||||||||||
1-4 family residential | 12,197 | 14,119 | — | |||||||||
Commercial | 32,213 | 39,590 | — | |||||||||
Consumer | — | — | — | |||||||||
Total | $ | 55,160 | $ | 69,056 | $ | — | ||||||
With an allowance recorded: | ||||||||||||
Commercial and agricultural | $ | 1,774 | $ | 2,096 | $ | 1,208 | ||||||
Real estate - construction | 14,691 | 18,669 | 2,247 | |||||||||
Real estate - mortgage: | ||||||||||||
1-4 family residential | 8,581 | 9,810 | 2,056 | |||||||||
Commercial | 15,531 | 16,200 | 3,012 | |||||||||
Consumer | 201 | 201 | 201 | |||||||||
Total | $ | 40,778 | $ | 46,976 | $ | 8,724 | ||||||
Total impaired loans | ||||||||||||
Commercial and agricultural | $ | 3,028 | $ | 3,416 | $ | 1,208 | ||||||
Real estate - construction | 24,187 | 32,696 | 2,247 | |||||||||
Real estate - mortgage: | ||||||||||||
1-4 family residential | 20,778 | 23,929 | 2,056 | |||||||||
Commercial | 47,744 | 55,790 | 3,012 | |||||||||
Consumer | 201 | 201 | 201 | |||||||||
Total | $ | 95,938 | $ | 116,032 | $ | 8,724 | ||||||
PI loans with subsequent credit deterioration: | ||||||||||||
Commercial and agricultural | $ | 18,911 | $ | 18,859 | $ | 1,838 | ||||||
Real estate - construction | 2,188 | 2,244 | 71 | |||||||||
Real estate - mortgage: | ||||||||||||
1-4 family residential | 3,179 | 3,729 | 635 | |||||||||
Commercial | 12,307 | 12,661 | 718 | |||||||||
Consumer | 74 | 62 | 74 | |||||||||
Total | $ | 36,659 | $ | 37,555 | $ | 3,336 |
Unpaid | ||||||||||||
(dollars in thousands) | Recorded | Principal | Related | |||||||||
Investment | Balance | Allowance | ||||||||||
With no related allowance recorded: | ||||||||||||
Commercial and agricultural | $ | 2,354 | $ | 4,346 | $ | — | ||||||
Real estate - construction | 16,351 | 25,714 | — | |||||||||
Real estate - mortgage: | ||||||||||||
1-4 family residential | 13,003 | 19,657 | — | |||||||||
Commercial | 22,176 | 26,964 | — | |||||||||
Consumer | — | 102 | — | |||||||||
Total | $ | 53,884 | $ | 76,783 | $ | — | ||||||
With an allowance recorded: | ||||||||||||
Commercial and agricultural | $ | 1,536 | $ | 2,047 | $ | 1,506 | ||||||
Real estate - construction | 14,109 | 14,718 | 4,899 | |||||||||
Real estate - mortgage: | ||||||||||||
1-4 family residential | 11,883 | 12,328 | 2,140 | |||||||||
Commercial | 14,659 | 14,943 | 2,415 | |||||||||
Consumer | 170 | 172 | 130 | |||||||||
Total | $ | 42,357 | $ | 44,208 | $ | 11,090 | ||||||
Total impaired loans | ||||||||||||
Commercial and agricultural | $ | 3,890 | $ | 6,393 | $ | 1,506 | ||||||
Real estate - construction | 30,460 | 40,432 | 4,899 | |||||||||
Real estate - mortgage: | ||||||||||||
1-4 family residential | 24,886 | 31,985 | 2,140 | |||||||||
Commercial | 36,835 | 41,907 | 2,415 | |||||||||
Consumer | 170 | 274 | 130 | |||||||||
Total | $ | 96,241 | $ | 120,991 | $ | 11,090 |
For Three Months Ended | For Three Months Ended | |||||||||||||||
June 30, 2012 | June 30, 2011 | |||||||||||||||
Average | Interest | Average | Interest | |||||||||||||
(dollars in thousands) | Recorded | Income | Recorded | Income | ||||||||||||
Investment | Recognized | Investment | Recognized | |||||||||||||
With no related allowance recorded: | ||||||||||||||||
Commercial and agricultural | $ | 2,170 | $ | 3 | $ | 3,086 | $ | — | ||||||||
Real estate - construction | 10,918 | 30 | 61,867 | — | ||||||||||||
Real estate - mortgage: | ||||||||||||||||
1-4 family residential | 15,944 | 60 | 19,685 | 1 | ||||||||||||
Commercial | 33,630 | 76 | 58,170 | 1 | ||||||||||||
Consumer | 1,000 | 15 | 161 | — | ||||||||||||
Total | $ | 63,662 | $ | 184 | $ | 142,969 | $ | 2 | ||||||||
With an allowance recorded: | ||||||||||||||||
Commercial and agricultural | $ | 1,790 | $ | — | $ | 5,879 | $ | — | ||||||||
Real estate - construction | 16,567 | 7 | 60,059 | — | ||||||||||||
Real estate - mortgage: | ||||||||||||||||
1-4 family residential | 8,760 | 76 | 17,589 | — | ||||||||||||
Commercial | 15,832 | 151 | 32,829 | 1 | ||||||||||||
Consumer | 652 | 13 | 282 | — | ||||||||||||
Total | $ | 43,601 | $ | 247 | $ | 116,638 | $ | 1 | ||||||||
Total: | ||||||||||||||||
Commercial and agricultural | $ | 3,960 | $ | 3 | $ | 8,965 | $ | — | ||||||||
Real estate - construction | 27,485 | 37 | 121,926 | — | ||||||||||||
Real estate - mortgage: | ||||||||||||||||
1-4 family residential | 24,704 | 136 | 37,274 | 1 | ||||||||||||
Commercial | 49,462 | 227 | 90,999 | 2 | ||||||||||||
Consumer | 1,652 | 28 | 443 | — | ||||||||||||
Total | $ | 107,263 | $ | 431 | $ | 259,607 | $ | 3 |
For Six Months Ended | For Six Months Ended | |||||||||||||||
June 30, 2012 | June 30, 2011 | |||||||||||||||
Average | Interest | Average | Interest | |||||||||||||
(dollars in thousands) | Recorded | Income | Recorded | Income | ||||||||||||
Investment | Recognized | Investment | Recognized | |||||||||||||
With no related allowance recorded: | ||||||||||||||||
Commercial and agricultural | $ | 2,651 | $ | 10 | $ | 3,756 | $ | — | ||||||||
Real estate - construction | 12,166 | 34 | 60,795 | — | ||||||||||||
Real estate - mortgage: | ||||||||||||||||
1-4 family residential | 17,071 | 66 | 20,692 | 1 | ||||||||||||
Commercial | 31,720 | 106 | 52,421 | 1 | ||||||||||||
Consumer | 699 | 15 | 249 | — | ||||||||||||
Total | $ | 64,307 | $ | 231 | $ | 137,913 | $ | 2 | ||||||||
With an allowance recorded: | ||||||||||||||||
Commercial and agricultural | $ | 1,729 | $ | — | $ | 6,738 | $ | — | ||||||||
Real estate - construction | 14,308 | 9 | 65,267 | — | ||||||||||||
Real estate - mortgage: | ||||||||||||||||
1-4 family residential | 10,862 | 94 | 17,242 | — | ||||||||||||
Commercial | 15,177 | 159 | 64,386 | 1 | ||||||||||||
Consumer | 432 | 13 | 195 | — | ||||||||||||
Total | $ | 42,508 | $ | 275 | $ | 153,828 | $ | 1 | ||||||||
Total: | ||||||||||||||||
Commercial and agricultural | $ | 4,380 | $ | 10 | $ | 10,494 | $ | — | ||||||||
Real estate - construction | 26,474 | 43 | 126,062 | — | ||||||||||||
Real estate - mortgage: | ||||||||||||||||
1-4 family residential | 27,933 | 160 | 37,934 | 1 | ||||||||||||
Commercial | 46,897 | 265 | 116,807 | 2 | ||||||||||||
Consumer | 1,131 | 28 | 444 | — | ||||||||||||
Total | $ | 106,815 | $ | 506 | $ | 291,741 | $ | 3 |
For Three Months Ended June 30, 2012 | |||||||||||
Pre-Modification | Post-Modification | ||||||||||
Outstanding | Outstanding | ||||||||||
(dollars in thousands) | Number | Recorded | Recorded | ||||||||
of Loans | Investment | Investment | |||||||||
Commercial and agricultural | — | $ | — | $ | — | ||||||
Real estate - construction | 4 | 369 | 329 | ||||||||
Real estate - mortgage: | |||||||||||
1-4 family residential | — | — | — | ||||||||
Commercial | 3 | 617 | 614 | ||||||||
Consumer | — | — | — | ||||||||
Total | 7 | $ | 986 | $ | 943 |
For Six Months Ended June 30, 2012 | |||||||||||
Pre-Modification | Post-Modification | ||||||||||
Outstanding | Outstanding | ||||||||||
(dollars in thousands) | Number | Recorded | Recorded | ||||||||
of Loans | Investment | Investment | |||||||||
Commercial and agricultural | — | $ | — | $ | — | ||||||
Real estate - construction | 9 | 2,526 | 1,603 | ||||||||
Real estate - mortgage: | |||||||||||
1-4 family residential | 2 | 58 | 58 | ||||||||
Commercial | 8 | 1,356 | 1,353 | ||||||||
Consumer | — | — | — | ||||||||
Total | 19 | $ | 3,940 | $ | 3,014 |
• | Construction draws - 100% |
• | Equity lines of credit - 50% |
• | Letters of Credit - 10% |
(dollars in thousands) | June 30, 2012 | December 31, 2011 | ||||||
Real estate acquired in settlement of loans | $ | 86,183 | $ | 110,009 | ||||
Personal property acquired in settlement of loans | 217 | 377 | ||||||
Total property acquired in settlement of loans | $ | 86,400 | $ | 110,386 |
For Three Months Ended | ||||||||
(dollars in thousands) | June 30, 2012 | June 30, 2011 | ||||||
Real estate acquired in settlement of loans, beginning of period | $ | 104,193 | $ | 67,331 | ||||
Plus: New real estate acquired in settlement of loans | 6,085 | 52,680 | ||||||
Plus: Real estate acquired in BOGC acquisition | — | — | ||||||
Less: Sales of real estate acquired in settlement of loans | (13,502 | ) | (8,681 | ) | ||||
Less: Write-downs and net loss on sales charged to expense | (10,593 | ) | (9,946 | ) | ||||
Real estate acquired in settlement of loans, end of period | $ | 86,183 | $ | 101,384 |
For Six Months Ended | ||||||||
(dollars in thousands) | June 30, 2012 | June 30, 2011 | ||||||
Real estate acquired in settlement of loans, beginning of period | $ | 110,009 | $ | 62,058 | ||||
Plus: New real estate acquired in settlement of loans | 15,020 | 73,967 | ||||||
Plus: Real estate acquired in BOGC acquisition | — | — | ||||||
Less: Sales of real estate acquired in settlement of loans | (24,376 | ) | (10,399 | ) | ||||
Less: Write-downs and net loss on sales charged to expense | (14,470 | ) | (24,242 | ) | ||||
Real estate acquired in settlement of loans, end of period | $ | 86,183 | $ | 101,384 |
(dollars in thousands, except per share data) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Net loss from continuing operations before cumulative dividends on preferred stock | $ | (18,138 | ) | $ | (46,985 | ) | $ | (28,970 | ) | $ | (86,999 | ) | ||||
Dividends on preferred stock | — | (1,087 | ) | — | (2,104 | ) | ||||||||||
Loss from continuing operations, net of tax | (18,138 | ) | (48,072 | ) | (28,970 | ) | (89,103 | ) | ||||||||
Loss from discontinued operations, net of tax | — | (1,989 | ) | (27 | ) | (5,682 | ) | |||||||||
Net loss to common shareholders | $ | (18,138 | ) | $ | (50,061 | ) | $ | (28,997 | ) | $ | (94,785 | ) | ||||
Weighted average number of common shares outstanding - basic and diluted | 21,190,848 | 114,265 | 21,146,758 | 114,256 | ||||||||||||
Net loss per common share from continuing operations - basic and diluted | $ | (0.86 | ) | $ | (420.71 | ) | $ | (1.37 | ) | $ | (779.85 | ) | ||||
Net loss per common share from discontinued operations - basic and diluted | — | (17.40 | ) | — | (49.73 | ) | ||||||||||
Net loss per common share - basic and diluted | (0.86 | ) | (438.11 | ) | (1.37 | ) | (829.58 | ) |
Gain, Net of Tax | ||||||||||||||||
Recognized in Income | ||||||||||||||||
(dollars in thousands) | For the three months ended | For the six months ended | ||||||||||||||
June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Interest rate swap contracts - FHLB advances | $ | — | $ | 46 | $ | — | $ | 102 |
Gain (Loss) recognized | ||||||||||||||||
(dollars in thousands) | For the three months ended | For the six months ended | ||||||||||||||
June 30, 2012 | June 30, 2011 | June 30, 2012 | June 30, 2011 | |||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Mortgage loan rate lock commitments (1) | $ | 177 | $ | — | $ | 177 | $ | 55 | ||||||||
Mortgage loan forward sales and MBS (1) | — | — | — | (44 | ) | |||||||||||
Total | $ | 177 | $ | — | $ | 177 | $ | 11 | ||||||||
(dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Loans held for sale | $ | 1,324 | $ | — | $ | 1,324 | $ | — | ||||||||
Available-for-sale debt securities: | ||||||||||||||||
U.S. Treasury and government agencies | 7,096 | — | 7,096 | — | ||||||||||||
U.S. government sponsored agencies | 3,616 | — | 3,616 | — | ||||||||||||
States and political subdivisions | 6,066 | — | 6,066 | — | ||||||||||||
Residential mortgage-backed securities-GSE | 385,502 | — | 385,502 | — | ||||||||||||
Residential mortgage-backed securities-Private | 32,680 | — | 32,680 | — | ||||||||||||
Commercial mortgage-backed securities-Private | 5,339 | — | 5,339 | — | ||||||||||||
Corporate notes | 36,837 | — | 36,837 | — | ||||||||||||
Total available-for-sale debt securities | 477,136 | — | 477,136 | — | ||||||||||||
Mortgage servicing rights | 25 | — | — | 25 | ||||||||||||
Total assets at fair value from continuing operations | $ | 477,161 | $ | — | $ | 477,136 | $ | 25 |
(dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | ||||||||||||||||
Available-for-sale debt securities: | ||||||||||||||||
U.S. Treasury and government agencies | $ | 7,188 | $ | — | $ | 7,188 | $ | — | ||||||||
U.S. government sponsored agencies | 32,364 | — | 32,364 | — | ||||||||||||
States and political subdivisions | 6,090 | — | 6,090 | — | ||||||||||||
Residential mortgage-backed securities-GSE | 350,273 | — | 350,273 | — | ||||||||||||
Residential mortgage-backed securities-Private | 32,217 | — | 32,217 | — | ||||||||||||
Corporate notes | 3,174 | — | 3,174 | — | ||||||||||||
Total available-for-sale debt securities | 431,306 | — | 431,306 | — | ||||||||||||
Total assets at fair value from continuing operations | $ | 431,306 | $ | — | $ | 431,306 | $ | — |
Fair Value Measurements Using Significant | ||||||||
Unobservable Inputs (Level 3) | ||||||||
Mortgage Servicing Rights | ||||||||
(dollars in thousands) | Three Months Ended June 30, | |||||||
2012 | 2011 | |||||||
Beginning balance at April 1, | $ | — | $ | — | ||||
Total gains or losses (realized/unrealized): | ||||||||
Included in earnings | 25 | — | ||||||
Purchases, issuances and settlements | — | — | ||||||
Servicing rights sold | — | — | ||||||
Ending balance at June 30, | $ | 25 | $ | — |
Fair Value Measurements Using Significant | ||||||||
Unobservable Inputs (Level 3) | ||||||||
Mortgage Servicing Rights | ||||||||
(dollars in thousands) | Six Months Ended June 30, | |||||||
2012 | 2011 | |||||||
Beginning balance at January 1, | $ | — | $ | 2,359 | ||||
Total gains or losses (realized/unrealized): | ||||||||
Included in earnings | 25 | (117 | ) | |||||
Purchases, issuances and settlements | — | — | ||||||
Servicing rights sold | — | (2,242 | ) | |||||
Ending balance at June 30, | $ | 25 | $ | — |
(dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Impaired loans, net | $ | 32,054 | — | — | $ | 32,054 | ||||||||||
Other real estate owned | 50,126 | — | — | 50,126 | ||||||||||||
Total assets at fair value from continuing operations | $ | 82,180 | $ | — | $ | — | $ | 82,180 |
(dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Loans held for sale | $ | 4,529 | $ | — | $ | 4,529 | $ | — | ||||||||
Impaired loans, net | 31,266 | — | — | 31,266 | ||||||||||||
Purchased impaired loans | 308,594 | — | — | 308,594 | ||||||||||||
Purchased contractual loans | 65,283 | — | — | 65,283 | ||||||||||||
Other real estate owned | 84,794 | — | — | 84,794 | ||||||||||||
Total assets at fair value from continuing operations | $ | 494,466 | $ | — | $ | 4,529 | $ | 489,937 |
(dollars in thousands) | Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Loans held for sale | $ | 233 | $ | — | $ | 233 | $ | — | ||||||||
Total assets at fair value from discontinued operations | $ | 233 | $ | — | $ | 233 | $ | — |
(dollars in thousands) | Fair Value at June 30, 2012 | Valuation Techniques | Unobservable Input | Range | ||||||
Nonrecurring measurements: | ||||||||||
Impaired loans, net | $ | 32,054 | Discounted appraisals | Collateral discounts | 6.00%-40.00% | |||||
Other real estate owned | 50,126 | Discounted appraisals | Collateral discounts | 6.00%-40.00% | ||||||
Mortgage servicing rights | 25 | Discounted cash flows | Prepayment rate | 10.00% - 30.00% | ||||||
Mortgage servicing rights | Discount rate | 4.00% - 12.00% |
At June 30, 2012 | |||||||||||||||||||
(dollars in thousands) | Carrying Value | Estimated Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||
Financial Assets of Continuing Operations: | |||||||||||||||||||
Cash and cash equivalents | $ | 363,879 | $ | 363,879 | $ | 363,879 | $ | — | — | ||||||||||
Investment securities: Available-for-sale | 477,136 | 477,136 | — | 477,136 | — | ||||||||||||||
Loans held for sale | 1,324 | 1,324 | — | 1,324 | — | ||||||||||||||
Loans, net | 1,243,272 | 1,235,426 | — | — | 1,235,426 | ||||||||||||||
Accrued interest receivable | 6,143 | 6,143 | — | 6,143 | — | ||||||||||||||
Financial Liabilities of Continuing Operations: | |||||||||||||||||||
Deposits | 2,041,770 | 2,047,053 | — | 2,047,053 | — | ||||||||||||||
Retail repurchase agreements | 11,455 | 11,455 | — | 11,455 | — | ||||||||||||||
Federal Home Loan Bank advances | 58,350 | 63,157 | — | 63,157 | — | ||||||||||||||
Junior subordinated debentures | 56,702 | 36,728 | — | — | 36,728 | ||||||||||||||
Accrued interest payable | 1,782 | 1,782 | — | 1,782 | — |
At December 31, 2011 | ||||||||||||||||||||
(dollars in thousands) | Carrying Value | Estimated Fair Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
Financial Assets of Continuing Operations: | ||||||||||||||||||||
Cash and cash equivalents | $ | 553,416 | $ | 553,416 | $ | 553,416 | $ | — | $ | — | ||||||||||
Investment securities: Available-for-sale | 431,306 | 431,306 | — | 431,306 | — | |||||||||||||||
Loans held for sale | 4,529 | 4,529 | — | 4,529 | — | |||||||||||||||
Loans, net | 1,178,175 | 1,176,795 | — | — | 1,176,795 | |||||||||||||||
Accrued interest receivable | 5,919 | 5,919 | — | 5,919 | — | |||||||||||||||
Financial Liabilities of Continuing Operations: | ||||||||||||||||||||
Deposits | 2,129,111 | 2,139,093 | — | 2,139,093 | — | |||||||||||||||
Retail repurchase agreements | 8,838 | 8,838 | — | 8,838 | — | |||||||||||||||
Federal Home Loan Bank advances | 58,370 | 62,555 | — | 62,555 | — | |||||||||||||||
Junior subordinated debentures | 56,702 | 36,218 | — | — | 36,218 | |||||||||||||||
Accrued interest payable | 1,654 | 1,654 | — | 1,654 | — |
As of June 30, 2012 | As of December 31, 2011 | |||||||||||||||
(dollars in thousands) | Carrying Value | Estimated Fair Value | Carrying Value | Estimated Fair Value | ||||||||||||
Financial Assets of Discontinued Operations | $ | — | $ | — | $ | 233 | $ | 233 | ||||||||
Financial Liabilities of Discontinued Operations | — | — | — | — |
• | changes in interest rates, spreads on earning assets and interest-bearing liabilities, the shape of the yield curve and interest rate sensitivity |
• | changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; |
• | continued and increased credit losses and material changes in the quality of our loan portfolio; |
• | decline in the value of our OREO; |
• | financial resources in the amount, at the times and on the terms required to support our future business; |
• | increased competitive pressures in the banking industry or in FNB's markets; |
• | less favorable general economic conditions, either nationally or regionally, resulting in, among other things, a reduced demand for credit or other services; |
• | deterioration in the housing markets and reduced demand for mortgages; |
• | the outcome of legislation and regulation affecting the financial services industry, including FNB, including the effects underway through the continuing implementation of the Dodd-Frank Act, including proposed revisions to the regulatory capital requirements; |
• | changes in accounting principles and standards; |
• | adverse changes in financial performance or condition of FNB's borrowers, which could affect repayment of such borrowers' outstanding loans; |
• | increases in operating costs and expenses; |
• | changes in pricing and product/service offerings by competitors; |
• | rapid technological development and changes; |
• | the effect of any mergers, acquisitions or other transactions to which we or our subsidiaries may from time to time be a party; |
• | failure of assumptions underlying the establishment of our ALL; and |
• | success at managing the risks involved in the foregoing, |
(dollars in thousands, except per share data) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Income Statement Data | ||||||||||||||||
Net interest income | $ | 16,049 | $ | 9,192 | $ | 31,229 | $ | 18,401 | ||||||||
Provision for loan losses | 7,778 | 33,580 | 10,845 | 53,763 | ||||||||||||
Noninterest income | 6,532 | 3,285 | 10,358 | 6,867 | ||||||||||||
Noninterest expense | 32,915 | 26,330 | 59,763 | 59,080 | ||||||||||||
Loss from continuing operations, before income taxes | (18,112 | ) | (47,433 | ) | (29,021 | ) | (87,575 | ) | ||||||||
Loss from continuing operations, net of tax | (18,138 | ) | (46,985 | ) | (28,970 | ) | (86,999 | ) | ||||||||
Loss from discontinued operations, net of tax | — | (1,989 | ) | (27 | ) | (5,682 | ) | |||||||||
Net loss | (18,138 | ) | (48,974 | ) | (28,997 | ) | (92,681 | ) | ||||||||
Dividends on preferred stock | — | (1,087 | ) | — | (2,104 | ) | ||||||||||
Net loss to common shareholders | (18,138 | ) | (50,061 | ) | (28,997 | ) | (94,785 | ) | ||||||||
Period End Balances | ||||||||||||||||
Assets | $ | 2,301,761 | $ | 1,722,238 | $ | 2,301,761 | $ | 1,722,238 | ||||||||
Loans held for sale (1) | 1,324 | 9,450 | 1,324 | 9,450 | ||||||||||||
Loans held for investment (2) | 1,281,823 | 1,018,274 | 1,281,823 | 1,018,274 | ||||||||||||
Allowance for loan losses (1) | 38,551 | 59,366 | 38,551 | 59,366 | ||||||||||||
Goodwill | 4,205 | — | 4,205 | — | ||||||||||||
Deposits | 2,041,770 | 1,604,954 | 2,041,770 | 1,604,954 | ||||||||||||
Borrowings | 126,507 | 213,714 | 126,507 | 213,714 | ||||||||||||
Shareholders' equity/(deficit) | 108,002 | (113,718 | ) | 108,002 | (113,718 | ) | ||||||||||
Average Balances | ||||||||||||||||
Assets | $ | 2,328,045 | $ | 1,788,465 | $ | 2,359,605 | $ | 1,839,995 | ||||||||
Loans held for sale (1) | 3,349 | 172 | 4,562 | 87 | ||||||||||||
Loans held for investment (2) | 1,283,673 | 1,143,641 | 1,251,181 | 1,203,475 | ||||||||||||
Allowance for loan losses (1) | 38,729 | 70,477 | 39,262 | 79,439 | ||||||||||||
Goodwill | 4,205 | — | 4,055 | — | ||||||||||||
Deposits | 2,058,844 | 1,635,848 | 2,087,464 | 1,662,566 | ||||||||||||
Borrowings | 123,605 | 212,206 | 123,513 | 214,453 | ||||||||||||
Shareholders' equity/(deficit) | 119,619 | (77,015 | ) | 123,173 | (53,981 | ) | ||||||||||
Per Common Share Data | ||||||||||||||||
Net loss per common share from continuing operations - basic and diluted | $ | — | $ | (0.42 | ) | $ | — | $ | (0.78 | ) | ||||||
Net loss per common share from discontinued operations - basic and diluted | — | (0.02 | ) | — | (0.05 | ) | ||||||||||
Net loss per common share - basic and diluted | — | (0.44 | ) | — | (0.83 | ) | ||||||||||
Book value (3) | 5.00 | (1,570.13 | ) | 5.00 | (1,570.26 | ) | ||||||||||
Tangible book value (3) | 4.46 | (1,603.18 | ) | 4.46 | (1,603.31 | ) | ||||||||||
Performance Ratios | ||||||||||||||||
Return on average assets | (3.13 | )% | (10.98 | )% | (2.47 | )% | (10.16 | )% | ||||||||
Return on average tangible assets (3) | (3.15 | ) | (10.96 | ) | (2.48 | ) | (10.14 | ) | ||||||||
Return on average equity (4) | (60.99 | ) | NM | (47.34 | ) | NM |
Return on average tangible equity (3) | (70.11 | ) | NM | (53.00 | ) | NM | ||||||||||
Net interest margin (tax equivalent) | 3.06 | 2.26 | 2.97 | 2.20 | ||||||||||||
Asset Quality Ratios | ||||||||||||||||
Allowance for loan losses to period end loans held for investment (1) | 3.01 | % | 5.83 | % | 3.01 | % | 5.83 | % | ||||||||
Nonperforming loans to period end allowance for loan losses (1) | 247.82 | 350.18 | 247.82 | 350.18 | ||||||||||||
Net charge-offs (annualized) to average loans held for investment | 2.83 | 15.06 | 1.87 | 14.76 | ||||||||||||
Nonperforming assets to period end loans held for investment and foreclosed property (5) | 13.30 | 27.63 | 13.30 | 27.63 | ||||||||||||
Capital and Liquidity Ratios | ||||||||||||||||
Average equity to average assets | 5.14 | % | (4.31 | )% | 5.22 | % | (2.93 | )% | ||||||||
Leverage capital | 5.83 | (7.23 | ) | 5.83 | (7.23 | ) | ||||||||||
Tier 1 risk-based capital | 9.62 | (10.73 | ) | 9.62 | (10.73 | ) | ||||||||||
Total risk-based capital | 12.19 | (10.73 | ) | 12.19 | (10.73 | ) | ||||||||||
Average loans to average deposits | 62.51 | 69.91 | 60.13 | 72.39 | ||||||||||||
Average loans to average deposits and borrowings | 58.97 | 61.88 | 56.77 | 64.12 |
Three Months Ended June 30, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
(dollars in thousands) | Average | Income / | Yield / | Average | Income / | Yield / | |||||||||||||||
Balance (3) | Expense | Rate | Balance (3) | Expense | Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans (1)(2) | $ | 1,287,022 | $ | 17,283 | 5.40 | % | $ | 1,143,813 | $ | 12,279 | 4.31 | % | |||||||||
Taxable investment securities | 457,414 | 2,887 | 2.54 | 363,950 | 2,717 | 2.99 | |||||||||||||||
Tax-exempt investment securities (1) | — | — | — | 7,741 | 206 | 10.68 | |||||||||||||||
Other earning assets | 370,593 | 310 | 0.34 | 137,409 | 118 | 0.34 | |||||||||||||||
Assets of discontinued operations | — | — | — | 7,372 | 13 | 0.71 | |||||||||||||||
Total earning assets | 2,115,029 | 20,480 | 3.89 | 1,660,285 | 15,333 | 3.70 | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Cash and due from banks | 20,395 | 22,627 | |||||||||||||||||||
Goodwill and core deposit premium | 11,907 | 3,905 | |||||||||||||||||||
Other assets, net | 180,714 | 102,667 | |||||||||||||||||||
Assets of discontinued operations | — | (1,019 | ) | ||||||||||||||||||
Total assets | $ | 2,328,045 | $ | 1,788,465 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing demand deposits | $ | 350,235 | $ | 379 | 0.44 | % | $ | 226,627 | $ | 435 | 0.77 | % | |||||||||
Savings deposits | 72,480 | 27 | 0.15 | 45,647 | 29 | 0.25 | |||||||||||||||
Money market deposits | 439,132 | 486 | 0.45 | 283,168 | 562 | 0.80 | |||||||||||||||
Time deposits | 941,206 | 2,809 | 1.20 | 922,947 | 3,937 | 1.71 | |||||||||||||||
Total interest-bearing deposits | 1,803,053 | 3,701 | 0.83 | 1,478,389 | 4,963 | 1.35 | |||||||||||||||
Retail repurchase agreements | 8,547 | 9 | 0.42 | 8,892 | 14 | 0.63 | |||||||||||||||
Federal Home Loan Bank advances | 58,356 | 387 | 2.67 | 144,112 | 703 | 1.96 | |||||||||||||||
Other borrowed funds | 56,702 | 286 | 2.03 | 59,202 | 318 | 2.15 | |||||||||||||||
Total interest-bearing liabilities | 1,926,658 | 4,383 | 0.91 | 1,690,595 | 5,998 | 1.42 | |||||||||||||||
Noninterest-bearing liabilities and shareholders' equity: | |||||||||||||||||||||
Noninterest-bearing demand deposits | 255,791 | 157,459 | |||||||||||||||||||
Other liabilities | 25,977 | 16,610 | |||||||||||||||||||
Shareholders' equity/(deficit) | 119,619 | (77,015 | ) | ||||||||||||||||||
Liabilities of discontinued operations | — | 816 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,328,045 | $ | 1,788,465 | |||||||||||||||||
Net interest income and net yield on earning assets (4) | $ | 16,097 | 3.06 | % | $ | 9,335 | 2.26 | % | |||||||||||||
Interest rate spread (5) | 2.98 | % | 2.28 | % |
Six Months Ended June 30, | |||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||
Average | Average | ||||||||||||||||||||
(dollars in thousands) | Average | Income / | Yield / | Average | Income / | Yield / | |||||||||||||||
Balance (3) | Expense | Rate | Balance (3) | Expense | Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Loans (1)(2) | $ | 1,255,743 | $ | 34,289 | 5.49 | % | $ | 1,203,562 | $ | 25,445 | 4.26 | % | |||||||||
Taxable investment securities | 447,637 | 5,571 | 2.50 | 345,416 | 4,798 | 2.80 | |||||||||||||||
Tax-exempt investment securities (1) | — | — | — | 9,066 | 457 | 10.16 | |||||||||||||||
Other earning assets | 439,172 | 660 | 0.30 | 147,153 | 284 | 0.39 | |||||||||||||||
Assets of discontinued operations | — | — | — | 14,166 | 56 | 0.80 | |||||||||||||||
Total earning assets | 2,142,552 | 40,520 | 3.83 | 1,719,363 | 31,040 | 3.64 | |||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||
Cash and due from banks | 20,180 | 24,413 | |||||||||||||||||||
Goodwill and core deposit premium | 11,934 | 4,005 | |||||||||||||||||||
Other assets, net | 184,772 | 92,080 | |||||||||||||||||||
Assets of discontinued operations | 167 | 134 | |||||||||||||||||||
Total assets | $ | 2,359,605 | $ | 1,839,995 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing demand deposits | $ | 349,083 | $ | 764 | 0.44 | % | $ | 227,718 | $ | 917 | 0.81 | % | |||||||||
Savings deposits | 71,239 | 53 | 0.15 | 45,252 | 57 | 0.25 | |||||||||||||||
Money market deposits | 436,315 | 982 | 0.45 | 293,555 | 1,146 | 0.79 | |||||||||||||||
Time deposits | 982,680 | 6,125 | 1.25 | 939,824 | 8,012 | 1.72 | |||||||||||||||
Total interest-bearing deposits | 1,839,317 | 7,924 | 0.87 | 1,506,349 | 10,132 | 1.36 | |||||||||||||||
Retail repurchase agreements | 8,450 | 17 | 0.40 | 9,355 | 31 | 0.67 | |||||||||||||||
Federal Home Loan Bank advances | 58,361 | 666 | 2.29 | 144,294 | 1,401 | 1.96 | |||||||||||||||
Other borrowed funds | 56,702 | 589 | 2.09 | 60,804 | 696 | 2.31 | |||||||||||||||
Total interest-bearing liabilities | 1,962,830 | 9,196 | 0.94 | 1,720,802 | 12,260 | 1.44 | |||||||||||||||
Noninterest-bearing liabilities and shareholders' equity: | |||||||||||||||||||||
Noninterest-bearing demand deposits | 248,147 | 156,217 | |||||||||||||||||||
Other liabilities | 24,286 | 15,671 | |||||||||||||||||||
Shareholders' equity/(deficit) | 123,173 | (53,981 | ) | ||||||||||||||||||
Liabilities of discontinued operations | 1,169 | 1,286 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 2,359,605 | $ | 1,839,995 | |||||||||||||||||
Net interest income and net yield on earning assets (4) | $ | 31,324 | 2.97 | % | $ | 18,780 | 2.20 | % | |||||||||||||
Interest rate spread (5) | 2.89 | % | 2.20 | % |
June 30, 2012 | December 31, 2011 | |||||||||||||
(dollars in thousands) | Balance | Associated Reserves | Balance | Associated Reserves | ||||||||||
Impaired loans, held for sale | $ | — | $ | — | $ | 4,529 | $ | — | ||||||
Impaired loans, not individually reviewed for impairment | 6,750 | — | 5,127 | — | ||||||||||
Impaired loans, individually reviewed, with no impairment | 55,160 | — | 53,884 | — | ||||||||||
Impaired loans, individually reviewed, with impairment | 40,778 | 8,724 | 42,357 | 11,090 | ||||||||||
Total impaired loans * | $ | 102,688 | $ | 8,724 | $ | 105,897 | $ | 11,090 | ||||||
Purchased impaired loans with subsequent deterioration | 36,659 | 3,336 | — | — | ||||||||||
Purchased impaired loans with no subsequent deterioration | 250,433 | — | 330,836 | — | ||||||||||
Total Reserves | 12,060 | 11,090 | ||||||||||||
Average impaired loans calculated using a simple average | $ | 107,263 | $ | 112,600 | ||||||||||
* Included at June 30, 2012 and December 31, 2011 were $3.9 million and $2.9 million, respectively, in restructured and performing loans. |
Minimum Regulatory Requirement | ||||||
Pursuant to Order | ||||||
CommunityOne Bank | Bank of Granite | Adequately Capitalized | Well- Capitalized | CommunityOne Bank | Bank of Granite | |
Leverage capital ratio | 6.35% | 7.61% | 4.00% | 5.00% | 9.00% | 8.00% |
Tier 1 risk-based capital ratio | 10.45% | 13.37% | 4.00% | 6.00% | — | — |
Total risk-based capital ratio | 11.73% | 13.53% | 8.00% | 10.00% | 12.00% | 12.00% |
• | “Common shareholders' equity” is shareholders' equity reduced by preferred stock and the common stock warrant. |
• | “Tangible common shareholders' equity” is shareholders' equity reduced by preferred stock, the common stock warrant, goodwill and other intangible assets. |
• | “Tangible shareholders' equity” is shareholders' equity reduced by recorded goodwill, other intangible assets and preferred stock. |
• | “Tangible assets” are total assets reduced by recorded goodwill and other intangible assets. |
• | “Tangible book value” is defined as total equity reduced by recorded goodwill, other intangible assets and preferred stock divided by total common shares outstanding. This measure discloses changes from period-to-period in book value per share exclusive of changes in intangible assets and preferred stock. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing total book value while not increasing the tangible assets of a company. Companies utilizing purchase accounting in a business combination, as required by GAAP, must record goodwill related to such transactions. |
(dollars in thousands, except per share data) | June 30, 2012 | December 31, 2011 | June 30, 2011 | |||||||||
Total shareholders' equity/(deficit) | $ | 108,002 | $ | 129,015 | $ | (113,718 | ) | |||||
Less: | ||||||||||||
Preferred stock | — | — | 61,802 | |||||||||
Common stock warrant | — | — | 3,891 | |||||||||
Common shareholders' equity/(deficit) | $ | 108,002 | $ | 129,015 | $ | (179,411 | ) | |||||
Total shareholders' equity/(deficit) | $ | 108,002 | $ | 129,015 | $ | (113,718 | ) | |||||
Less: | ||||||||||||
Goodwill | 4,205 | 3,905 | — | |||||||||
Core deposit intangible | 7,473 | 8,177 | 3,776 | |||||||||
Preferred stock | — | — | 61,802 | |||||||||
Common stock warrant | — | — | 3,891 | |||||||||
Tangible common shareholders' equity/(deficit) | $ | 96,324 | $ | 116,933 | $ | (183,187 | ) | |||||
Total shareholders' equity/(deficit) | $ | 108,002 | $ | 129,015 | $ | (113,718 | ) | |||||
Less: | ||||||||||||
Goodwill | 4,205 | 3,905 | — | |||||||||
Core deposit intangible | 7,473 | 8,177 | 3,776 | |||||||||
Tangible shareholders' equity/(deficit) | $ | 96,324 | $ | 116,933 | $ | (117,494 | ) | |||||
Total assets | $ | 2,301,761 | $ | 2,409,108 | $ | 1,722,238 | ||||||
Less: | ||||||||||||
Goodwill | 4,205 | 3,905 | — | |||||||||
Core deposit intangible | 7,473 | 8,177 | 3,776 | |||||||||
Tangible assets | $ | 2,290,083 | $ | 2,397,026 | $ | 1,718,462 | ||||||
Book value per common share | $ | 5.00 | $ | 6.11 | $ | (1,570.26 | ) | |||||
Effect of intangible assets | (0.54 | ) | (0.57 | ) | (33.05 | ) | ||||||
Tangible book value per common share | 4.46 | 5.54 | (1,603.31 | ) |
31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32 | Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
1. | I have reviewed this quarterly report on Form 10-Q of FNB United Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of FNB United Corp.; |
1. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
2. | Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
3. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
4. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Loans (Nonperforming Assets) (Details) (USD $)
|
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Dec. 31, 2011
|
|
Financing Receivable [Line Items] | |||||
Interest lost on nonaccrual loans | $ 1,500,000 | $ 3,500,000 | $ 2,900,000 | $ 7,600,000 | |
Loans on nonaccrual status | 95,100,000 | 95,100,000 | 103,000,000 | ||
Loans held for sale on nonaccrual status | 0 | 0 | 4,529,000 | ||
Loans more than 90 days delinquent, still on accrual | 427,000 | 427,000 | 3,000,000 | ||
Real estate owned/repossessed assets | 86,400,000 | 86,400,000 | 110,386,000 | ||
Total Assets | 2,301,761,000 | 2,301,761,000 | 2,409,108,000 | ||
Nonperforming [Member]
|
|||||
Financing Receivable [Line Items] | |||||
Loans held for sale on nonaccrual status | 0 | 0 | 4,529,000 | ||
Loans held for investment , nonaccrual status | 95,110,000 | 95,110,000 | 98,444,000 | ||
Loans more than 90 days delinquent, still on accrual | 427,000 | 427,000 | 3,000,000 | ||
Real estate owned/repossessed assets | 86,400,000 | 86,400,000 | 110,386,000 | ||
Total Assets | $ 181,937,000 | $ 181,937,000 | $ 216,359,000 |
Other Real Estate Owned and Property Acquired in Settlement of Loans (Details) (USD $)
|
6 Months Ended | |||||
---|---|---|---|---|---|---|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
|
Repossessed Assets [Abstract] | ||||||
Decrease in total OREO and foreclosed assets | $ 24,000,000 | |||||
Total OREO and foreclosed assets as a percentage of total nonperforming assets | 47.00% | 51.00% | ||||
Real estate acquired in settlement of loans | 86,183,000 | 104,193,000 | 110,009,000 | 101,384,000 | 67,331,000 | 62,058,000 |
Personal property acquired in settlement of loans | 217,000 | 377,000 | ||||
Total property acquired in settlement of loans | $ 86,400,000 | $ 110,386,000 |
Other Real Estate Owned and Property Acquired in Settlement of Loans (Real Estate Owned) (Details) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
assets
|
Jun. 30, 2011
|
Jun. 30, 2012
assets
|
Jun. 30, 2011
|
|
Real Estate Acquired Through Foreclosure [Roll Forward] | ||||
Real estate acquired in settlement of loans, beginning of period | $ 104,193,000 | $ 67,331,000 | $ 110,009,000 | $ 62,058,000 |
Plus: New real estate acquired in settlement of loans | 6,085,000 | 52,680,000 | 15,020,000 | 73,967,000 |
Less: Sales of real estate acquired in settlement of loans | (13,502,000) | (8,681,000) | (24,376,000) | (10,399,000) |
Less: Write-downs and net loss on sales charged to expense | (10,593,000) | (9,946,000) | (14,470,000) | (24,242,000) |
Real estate acquired in settlement of loans, end of period | 86,183,000 | 101,384,000 | 86,183,000 | 101,384,000 |
Number of assets under contract for sale | 41 | 41 | ||
Net carrying value of assets under contract for sale | $ 12,900,000 | $ 12,900,000 |
Allowance For Loan Losses (Allowance for Loan Losses, by Portfolio Segment) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | $ 39,795 | $ 68,729 | $ 39,360 | $ 93,687 |
Charge-offs | (10,285) | (45,662) | (14,300) | (91,571) |
Recoveries | 1,263 | 2,719 | 2,646 | 3,487 |
Provision for losses charged to continuing operations | 7,778 | 33,580 | 10,845 | 53,763 |
Balance, end of period | 38,551 | 59,366 | 38,551 | 59,366 |
Commercial and agricultural [Member]
|
||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 6,005 | 8,719 | 5,776 | 11,144 |
Charge-offs | (937) | (4,192) | (1,631) | (8,467) |
Recoveries | 235 | 467 | 489 | 533 |
Provision for losses charged to continuing operations | 1,848 | 1,533 | 2,517 | 3,317 |
Balance, end of period | 7,151 | 6,527 | 7,151 | 6,527 |
Real estate - construction [Member]
|
||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 10,912 | 32,947 | 11,995 | 46,792 |
Charge-offs | (4,521) | (21,510) | (6,296) | (44,172) |
Recoveries | 244 | 714 | 845 | 904 |
Provision for losses charged to continuing operations | 4,685 | 16,268 | 4,776 | 24,895 |
Balance, end of period | 11,320 | 28,419 | 11,320 | 28,419 |
Real estate - mortgage, 1-4 family residential [Member]
|
||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 12,103 | 9,751 | 8,885 | 7,742 |
Charge-offs | (2,454) | (4,585) | (3,159) | (6,621) |
Recoveries | 244 | 469 | 377 | 562 |
Provision for losses charged to continuing operations | (1,109) | 3,395 | 2,681 | 7,347 |
Balance, end of period | 8,784 | 9,030 | 8,784 | 9,030 |
Real estate - mortgage, commercial [Member]
|
||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 8,799 | 15,668 | 11,063 | 26,851 |
Charge-offs | (954) | (14,002) | (992) | (30,180) |
Recoveries | 262 | 693 | 336 | 742 |
Provision for losses charged to continuing operations | 1,111 | 11,260 | (1,189) | 16,206 |
Balance, end of period | 9,218 | 13,619 | 9,218 | 13,619 |
Consumer [Member]
|
||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Balance, beginning of period | 1,976 | 1,644 | 1,641 | 1,158 |
Charge-offs | (1,419) | (1,373) | (2,222) | (2,131) |
Recoveries | 278 | 376 | 599 | 746 |
Provision for losses charged to continuing operations | 1,243 | 1,124 | 2,060 | 1,998 |
Balance, end of period | $ 2,078 | $ 1,771 | $ 2,078 | $ 1,771 |
Earnings Per Share (EPS Calculation) (Details) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Earnings Per Share [Abstract] | ||||
Net loss from continuing operations before cumulative dividends on preferred stock | $ (18,138) | $ (46,985) | $ (28,970) | $ (86,999) |
Dividends on preferred stock | 0 | (1,087) | 0 | (2,104) |
Loss from continuting operations, net of tax | (18,138) | (48,072) | (28,970) | (89,103) |
Loss from discontinued operations, net of tax | 0 | (1,989) | (27) | (5,682) |
Net loss to common shareholders | $ (18,138) | $ (50,061) | $ (28,997) | $ (94,785) |
Weighted average number of common shares outstanding - basic and diluted | 21,190,848 | 114,265 | 21,146,758 | 114,256 |
Net loss per common share from continuing operations - basic and diluted | $ (0.86) | $ (420.71) | $ (1.37) | $ (779.85) |
Net loss per common share from discontinued operations - basic and diluted | $ 0.00 | $ (17.40) | $ 0.00 | $ (49.73) |
Net loss per common share - basic and diluted | $ (0.86) | $ (438.11) | $ (1.37) | $ (829.58) |
Other Real Estate Owned and Property Acquired in Settlement of Loans (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repossessed Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Repossessed Assets | The following table summarizes properties acquired in settlement of loans and personal property acquired in settlement of loans, the latter of which is included within the other assets financial statement line item on the Consolidated Balance Sheet at the periods indicated.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activities of Real Estate Acquired through Foreclosure | The following tables summarize the changes in real estate acquired in settlement of loans at the periods indicated.
|
Loans (Granite Purchased Loans) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
---|---|---|---|---|---|---|
Financing Receivable [Line Items] | ||||||
Allowance of loan losses | $ 38,551 | $ 39,795 | $ 39,360 | $ 59,366 | $ 68,729 | $ 93,687 |
Loans held for investment | 1,281,823 | 1,217,535 | ||||
Commercial and agricultural [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Loans held for investment | 78,367 | 95,089 | ||||
Real estate - construction [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Loans held for investment | 75,576 | 92,806 | ||||
Real estate - mortgage, 1-4 family residential [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Loans held for investment | 589,972 | 453,725 | ||||
Real estate - mortgage, commercial [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Loans held for investment | 493,721 | 531,383 | ||||
Consumer [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Loans held for investment | 44,187 | 44,532 | ||||
Granite Corp [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Allowance of loan losses | 3,336 | 0 | ||||
Purchased impaired | 287,092 | 330,836 | 330,836 | |||
Purchased contractual | 36,656 | 42,652 | ||||
Loans held for investment | 323,748 | 373,488 | ||||
Unpaid principal balance | 338,516 | 404,130 | ||||
Granite Corp [Member] | Commercial and agricultural [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Purchased impaired | 20,277 | 28,872 | ||||
Purchased contractual | 6,283 | 8,061 | ||||
Loans held for investment | 26,560 | 36,933 | ||||
Unpaid principal balance | 26,793 | 39,531 | ||||
Granite Corp [Member] | Real estate - construction [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Purchased impaired | 5,671 | 7,641 | ||||
Purchased contractual | 0 | 0 | ||||
Loans held for investment | 5,671 | 7,641 | ||||
Unpaid principal balance | 6,101 | 8,413 | ||||
Granite Corp [Member] | Real estate - mortgage, 1-4 family residential [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Purchased impaired | 46,150 | 52,894 | ||||
Purchased contractual | 30,373 | 34,590 | ||||
Loans held for investment | 76,523 | 87,484 | ||||
Unpaid principal balance | 79,980 | 93,310 | ||||
Granite Corp [Member] | Real estate - mortgage, commercial [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Purchased impaired | 213,750 | 239,621 | ||||
Purchased contractual | 0 | 0 | ||||
Loans held for investment | 213,750 | 239,621 | ||||
Unpaid principal balance | 224,208 | 261,076 | ||||
Granite Corp [Member] | Consumer [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Purchased impaired | 1,244 | 1,808 | ||||
Purchased contractual | 0 | 1 | ||||
Loans held for investment | 1,244 | 1,809 | ||||
Unpaid principal balance | 1,434 | 1,800 | ||||
Granite Corp [Member] | PI [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Allowance of loan losses | 3,300 | |||||
Granite Corp [Member] | PC [Member]
|
||||||
Financing Receivable [Line Items] | ||||||
Allowance of loan losses | $ 400 |
Loans (Details) (USD $)
|
1 Months Ended | |||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
Jun. 30, 2012
Commercial and agricultural [Member]
|
Dec. 31, 2011
Commercial and agricultural [Member]
|
Jun. 30, 2012
Real estate - construction [Member]
|
Dec. 31, 2011
Real estate - construction [Member]
|
Apr. 30, 2012
Real estate - mortgage, 1-4 family residential [Member]
|
Feb. 29, 2012
Real estate - mortgage, 1-4 family residential [Member]
|
Jun. 30, 2012
Real estate - mortgage, 1-4 family residential [Member]
|
Dec. 31, 2011
Real estate - mortgage, 1-4 family residential [Member]
|
Jun. 30, 2012
Real estate - mortgage, commercial [Member]
|
Dec. 31, 2011
Real estate - mortgage, commercial [Member]
|
Jun. 30, 2012
Consumer [Member]
|
Dec. 31, 2011
Consumer [Member]
|
Jun. 30, 2012
Granite Corp [Member]
|
Dec. 31, 2011
Granite Corp [Member]
|
Jun. 30, 2012
Granite Corp [Member]
Commercial and agricultural [Member]
|
Dec. 31, 2011
Granite Corp [Member]
Commercial and agricultural [Member]
|
Jun. 30, 2012
Granite Corp [Member]
Real estate - construction [Member]
|
Dec. 31, 2011
Granite Corp [Member]
Real estate - construction [Member]
|
Jun. 30, 2012
Granite Corp [Member]
Real estate - mortgage, 1-4 family residential [Member]
|
Dec. 31, 2011
Granite Corp [Member]
Real estate - mortgage, 1-4 family residential [Member]
|
Jun. 30, 2012
Granite Corp [Member]
Real estate - mortgage, commercial [Member]
|
Dec. 31, 2011
Granite Corp [Member]
Real estate - mortgage, commercial [Member]
|
Jun. 30, 2012
Granite Corp [Member]
Consumer [Member]
|
Dec. 31, 2011
Granite Corp [Member]
Consumer [Member]
|
|
Financing Receivable [Line Items] | ||||||||||||||||||||||||||||||
Loans held for sale | $ 1,324,000 | $ 4,529,000 | $ 0 | $ 0 | ||||||||||||||||||||||||||
Loans held for investment | 1,281,823,000 | 1,217,535,000 | 78,367,000 | 95,089,000 | 75,576,000 | 92,806,000 | 589,972,000 | 453,725,000 | 493,721,000 | 531,383,000 | 44,187,000 | 44,532,000 | 323,748,000 | 373,488,000 | 26,560,000 | 36,933,000 | 5,671,000 | 7,641,000 | 76,523,000 | 87,484,000 | 213,750,000 | 239,621,000 | 1,244,000 | 1,809,000 | ||||||
Less: Allowance for loan losses | (38,551,000) | (39,795,000) | (39,360,000) | (59,366,000) | (68,729,000) | (93,687,000) | (3,336,000) | 0 | ||||||||||||||||||||||
Net loans held for investment | 1,243,272,000 | 1,178,175,000 | 320,412,000 | 373,488,000 | ||||||||||||||||||||||||||
Loans purchases | 75,500,000 | 61,900,000 | ||||||||||||||||||||||||||||
Loans purchases premium | 1,400,000 | 2,300,000 | ||||||||||||||||||||||||||||
Net deferred loan premiums (discounts) | (2,600,000) | 1,800,000 | ||||||||||||||||||||||||||||
Unpaid principal balance for loans serviced for others | $ 2,500,000 | $ 700,000 |
Allowance For Loan Losses (Trouble Debt Restructuring) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2012
loans
|
Jun. 30, 2012
loans
|
|
Financing Receivable, Modifications [Line Items] | ||
Pre-modification outstanding recorded investment | $ 986 | $ 3,940 |
Post-modification outstanding recorded investment | 943 | 3,014 |
Number of loans | 7 | 19 |
Term extension [Member]
|
||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 5 | |
Interest rate modification [Member]
|
||
Financing Receivable, Modifications [Line Items] | ||
Number of loans | 1 | |
Commercial and agricultural [Member]
|
||
Financing Receivable, Modifications [Line Items] | ||
Pre-modification outstanding recorded investment | 0 | 0 |
Post-modification outstanding recorded investment | 0 | 0 |
Number of loans | 0 | 0 |
Real estate - construction [Member]
|
||
Financing Receivable, Modifications [Line Items] | ||
Pre-modification outstanding recorded investment | 369 | 2,526 |
Post-modification outstanding recorded investment | 329 | 1,603 |
Number of loans | 4 | 9 |
Real estate - mortgage, 1-4 family residential [Member]
|
||
Financing Receivable, Modifications [Line Items] | ||
Pre-modification outstanding recorded investment | 0 | 58 |
Post-modification outstanding recorded investment | 0 | 58 |
Number of loans | 0 | 2 |
Real estate - mortgage, commercial [Member]
|
||
Financing Receivable, Modifications [Line Items] | ||
Pre-modification outstanding recorded investment | 617 | 1,356 |
Post-modification outstanding recorded investment | 614 | 1,353 |
Number of loans | 3 | 8 |
Consumer [Member]
|
||
Financing Receivable, Modifications [Line Items] | ||
Pre-modification outstanding recorded investment | 0 | 0 |
Post-modification outstanding recorded investment | $ 0 | $ 0 |
Number of loans | 0 | 0 |
Fair Values of Assets and Liabilities (Measured on Nonrecurring Basis) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Continuing operations [Member] | Level 2 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 1,324 | $ 4,529 |
Continuing operations [Member] | Nonrecurring [Member] | Total [Member]
|
||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Loans held for sale | 4,529 | |
Impaired loans, net | 32,054 | 31,266 |
Expected loans | 308,594 | |
Contractual loans | 65,283 | |
Other real estate owned | 50,126 | 84,794 |
Total assets at fair value | 82,180 | 494,466 |
Continuing operations [Member] | Nonrecurring [Member] | Level 2 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Loans held for sale | 4,529 | |
Total assets at fair value | 4,529 | |
Continuing operations [Member] | Nonrecurring [Member] | Level 3 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 32,054 | 31,266 |
Expected loans | 308,594 | |
Contractual loans | 65,283 | |
Other real estate owned | 50,126 | 84,794 |
Total assets at fair value | 82,180 | 489,937 |
Discontinued operations [Member] | Nonrecurring [Member] | Total [Member]
|
||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Loans held for sale | 233 | |
Total assets at fair value | 233 | |
Discontinued operations [Member] | Nonrecurring [Member] | Level 2 [Member]
|
||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Loans held for sale | 233 | |
Total assets at fair value | $ 233 |
Allowance For Loan Losses (Evaluation for Impairment) (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2010
|
---|---|---|---|---|---|---|
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
ALL, individually evaluated for impairment | $ 8,724 | $ 11,090 | ||||
ALL, collectively evaluated for impairment | 26,491 | 28,270 | ||||
ALL, PI loans evluated for credit impairment | 3,336 | 0 | ||||
ALL, PI loans with no credit deterioration | 0 | 0 | ||||
Total ALL evaluated for impairment | 38,551 | 39,795 | 39,360 | 59,366 | 68,729 | 93,687 |
Loans held for investment, individually evaluated for impairment | 95,938 | 96,241 | ||||
Loans held for investment, collectively evaluated for impairment | 898,793 | 790,458 | ||||
Loans held for investment, PI loans with subsequent credit deterioration | 36,659 | 0 | ||||
Loans held for investment, PI loans with no credit deterioration | 250,433 | 330,836 | ||||
Loans held for investment | 1,281,823 | 1,217,535 | ||||
Commercial and agricultural [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
ALL, individually evaluated for impairment | 1,208 | 1,506 | ||||
ALL, collectively evaluated for impairment | 4,105 | 4,270 | ||||
ALL, PI loans evluated for credit impairment | 1,838 | 0 | ||||
ALL, PI loans with no credit deterioration | 0 | 0 | ||||
Total ALL evaluated for impairment | 7,151 | 6,005 | 5,776 | 6,527 | 8,719 | 11,144 |
Loans held for investment, individually evaluated for impairment | 3,028 | 3,890 | ||||
Loans held for investment, collectively evaluated for impairment | 55,062 | 62,327 | ||||
Loans held for investment, PI loans with subsequent credit deterioration | 18,911 | 0 | ||||
Loans held for investment, PI loans with no credit deterioration | 1,366 | 28,872 | ||||
Loans held for investment | 78,367 | 95,089 | ||||
Real estate - construction [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
ALL, individually evaluated for impairment | 2,247 | 4,899 | ||||
ALL, collectively evaluated for impairment | 9,002 | 7,096 | ||||
ALL, PI loans evluated for credit impairment | 71 | 0 | ||||
ALL, PI loans with no credit deterioration | 0 | 0 | ||||
Total ALL evaluated for impairment | 11,320 | 10,912 | 11,995 | 28,419 | 32,947 | 46,792 |
Loans held for investment, individually evaluated for impairment | 24,187 | 30,460 | ||||
Loans held for investment, collectively evaluated for impairment | 45,716 | 54,705 | ||||
Loans held for investment, PI loans with subsequent credit deterioration | 2,188 | 0 | ||||
Loans held for investment, PI loans with no credit deterioration | 3,485 | 7,641 | ||||
Loans held for investment | 75,576 | 92,806 | ||||
Real estate - mortgage, 1-4 family residential [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
ALL, individually evaluated for impairment | 2,056 | 2,140 | ||||
ALL, collectively evaluated for impairment | 6,093 | 6,745 | ||||
ALL, PI loans evluated for credit impairment | 635 | 0 | ||||
ALL, PI loans with no credit deterioration | 0 | 0 | ||||
Total ALL evaluated for impairment | 8,784 | 12,103 | 8,885 | 9,030 | 9,751 | 7,742 |
Loans held for investment, individually evaluated for impairment | 20,778 | 24,886 | ||||
Loans held for investment, collectively evaluated for impairment | 523,044 | 375,945 | ||||
Loans held for investment, PI loans with subsequent credit deterioration | 3,179 | 0 | ||||
Loans held for investment, PI loans with no credit deterioration | 42,971 | 52,894 | ||||
Loans held for investment | 589,972 | 453,725 | ||||
Real estate - mortgage, commercial [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
ALL, individually evaluated for impairment | 3,012 | 2,415 | ||||
ALL, collectively evaluated for impairment | 5,488 | 8,648 | ||||
ALL, PI loans evluated for credit impairment | 718 | 0 | ||||
ALL, PI loans with no credit deterioration | 0 | 0 | ||||
Total ALL evaluated for impairment | 9,218 | 8,799 | 11,063 | 13,619 | 15,668 | 26,851 |
Loans held for investment, individually evaluated for impairment | 47,744 | 36,835 | ||||
Loans held for investment, collectively evaluated for impairment | 232,229 | 254,927 | ||||
Loans held for investment, PI loans with subsequent credit deterioration | 12,307 | 0 | ||||
Loans held for investment, PI loans with no credit deterioration | 201,441 | 239,621 | ||||
Loans held for investment | 493,721 | 531,383 | ||||
Consumer [Member]
|
||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||
ALL, individually evaluated for impairment | 201 | 130 | ||||
ALL, collectively evaluated for impairment | 1,803 | 1,511 | ||||
ALL, PI loans evluated for credit impairment | 74 | 0 | ||||
ALL, PI loans with no credit deterioration | 0 | 0 | ||||
Total ALL evaluated for impairment | 2,078 | 1,976 | 1,641 | 1,771 | 1,644 | 1,158 |
Loans held for investment, individually evaluated for impairment | 201 | 170 | ||||
Loans held for investment, collectively evaluated for impairment | 42,742 | 42,554 | ||||
Loans held for investment, PI loans with subsequent credit deterioration | 74 | 0 | ||||
Loans held for investment, PI loans with no credit deterioration | 1,170 | 1,808 | ||||
Loans held for investment | $ 44,187 | $ 44,532 |
Basis of Presentation
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Nature of Operations FNB United Corp. we or us (which also refers to FNB and our subsidiaries on a consolidated basis) ("FNB") is a bank holding company incorporated under the laws of the State of North Carolina in 1984. We own two bank subsidiaries: CommunityOne Bank, N.A. (“CommunityOne”), a national banking association headquartered in Asheboro, North Carolina and, through Bank of Granite Corporation (“Granite Corp.”), Bank of Granite (“Granite”), a state chartered bank headquartered in Granite Falls, North Carolina. Through our bank subsidiaries, we offer a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, investment management and trust services, to individual and business customers through operations located throughout central, southern and western North Carolina, including the counties of Alamance, Alexander, Ashe, Burke, Caldwell, Catawba, Chatham, Gaston, Guilford, Iredell, Mecklenburg, Montgomery, Moore, Orange, Randolph, Richmond, Rowan, Scotland, Watauga and Wilkes. Management believes that the banks have a relatively stable deposit base and no material amount of deposits is obtained from a single depositor or group of depositors, including federal, state and local governments. CommunityOne owns two subsidiaries: Dover Mortgage Company, (“Dover”) and First National Investor Services, Inc. Dover previously engaged in the business of originating, underwriting and closing mortgage loans for sale in the secondary market. Dover ceased operations in the first quarter of 2011 and filed for Chapter 11 bankruptcy on February 15, 2012. First National Investor Services, Inc. holds deeds of trust for CommunityOne. 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. FNB also owns FNB United Statutory Trust I, FNB United Statutory Trust II, and Catawba Valley Capital Trust II, which were formed to facilitate the issuance of trust preferred securities. On October 21, 2011, as part of the recapitalization of FNB, FNB acquired Granite Corp., through the merger of a wholly owned subsidiary of FNB merging into Granite Corp (the "Merger"). The Merger was part of FNB's recapitalization strategy. General The accompanying consolidated financial statements, prepared without audit, include the accounts of FNB and its subsidiaries. All significant intercompany balances and transactions have been eliminated. Descriptions of the organization and business of FNB, accounting policies followed by FNB and other relevant information are contained in FNB's Annual Report on Form 10-K for the year ended December 31, 2011, as amended by its Amendment No. 1 (the "Form 10-K"), including the notes to the consolidated financial statements filed as part of that report. This quarterly report should be read in conjunction with the Form 10-K. In the opinion of management, the accompanying condensed consolidated financial statements contain all the adjustments, all of which are normal recurring adjustments, necessary to present fairly the financial position of FNB as of June 30, 2012 and December 31, 2011, and the results of its operations and cash flows for the three and six months ended June 30, 2012 and 2011, respectively. All financial information is reported on a continuing operations basis, unless otherwise noted. See Note 2 to the consolidated financial statements for a discussion regarding discontinued operations and certain assets and liabilities at June 30, 2012 and December 31, 2011. Use of Estimates We have made a number of estimates and assumptions relating to the reporting of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period to prepare these consolidated financial statements in conformity with accounting principles generally accepted in the United States ("GAAP"). Actual results could differ from those estimates. Material estimates subject to change in the near term include, among other items, the allowances for loan losses (“ALL”), the carrying value of other real estate owned (“OREO”), the carrying value of intangible assets, the fair value of net assets acquired in the Merger and the realization of deferred tax assets. Reclassification Certain reclassifications have been made to the prior period consolidated financial statements to place them on a comparable basis with the current period consolidated financial statements. These reclassifications have no effect on net income or shareholders' equity as previously reported. During the first quarter of 2012, FNB implemented a purchased loan accounting system and finalized its methodology to allocate the fair value of purchased impaired loans in pools to individual loans for purposes of several of the loan disclosure tables in Notes 5 and 6 to the consolidated financial statements. In order to present these tables for prior periods on a comparable basis to current period tables in these consolidated financial statements, we have reclassified certain amounts as of December 31, 2011 in the tables between loan portfolio segments and classes, between purchased contractual and purchased impaired loans, and between risk grade categories. These reclassifications have no effect on net income, the loan fair value mark, total loans or shareholders' equity as of or for the period ended December 31, 2011. Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date of this filing and has concluded that no subsequent events have occurred requiring accrual or disclosure in addition to that included herein. Recent Accounting Pronouncements Disclosures about Fair Value - Accounting Standards Update ("ASU") 2011-04 was issued in May 2011 to amend the Fair Value Measurement topic of the Accounting Standards Codification ("ASC") by clarifying the application of existing fair value measurement and disclosure requirements and by changing particular principles or requirements for measuring fair value or for disclosing information about fair value measurements. The amendment was effective for FNB on January 1, 2012, and the related disclosures are presented in Note 10. Comprehensive Income - The Comprehensive Income topic of the ASC was amended in June 2011. The amendment eliminates the option to present other comprehensive income as a part of the statement of changes in shareholders' equity and requires consecutive presentation of the statement of net income and other comprehensive income. The amendments were to become applicable to FNB on January 1, 2012 and were to be applied retrospectively. In December 2011, the topic was further amended to defer the effective date of presenting reclassification adjustments from other comprehensive income to net income on the face of the financial statements. Companies should continue to report reclassifications out of accumulated other comprehensive income consistent with the presentation requirements in effect prior to the amendments while FASB redeliberates future requirements. The remaining provisions of this update took effect for FNB on January 1, 2012. |
Fair Values of Assets and Liabilities (Quantitative Information about Level 3 Fair Value Measurements) (Details) (Level 3 [Member], Nonrecurring [Member], USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
Discounted Appraisal [Member]
|
Jun. 30, 2012
Discounted Cash Flows [Member]
|
Jun. 30, 2012
Impaired loans [Member]
Discounted Appraisal [Member]
Lower range [Member]
|
Jun. 30, 2012
Impaired loans [Member]
Discounted Appraisal [Member]
Upper range [Member]
|
Jun. 30, 2012
Other real estate owned [Member]
Discounted Appraisal [Member]
Lower range [Member]
|
Jun. 30, 2012
Other real estate owned [Member]
Discounted Appraisal [Member]
Upper range [Member]
|
Jun. 30, 2012
Mortgage servicing rights [Member]
Discounted Cash Flows [Member]
Lower range [Member]
|
Jun. 30, 2012
Mortgage servicing rights [Member]
Discounted Cash Flows [Member]
Upper range [Member]
|
Jun. 30, 2012
Continuing operations [Member]
|
Dec. 31, 2011
Continuing operations [Member]
|
|
Fair Value Inputs, Quantitative Information [Line Items] | ||||||||||
Impaired loans, net | $ 32,054 | $ 32,054 | $ 31,266 | |||||||
Other real estate owned | 50,126 | 50,126 | 84,794 | |||||||
Mortgage servicing rights | $ 25 | |||||||||
Collateral discounts | 6.00% | 40.00% | 6.00% | 40.00% | ||||||
Prepayment rate | 10.00% | 30.00% | ||||||||
Discount rate | 4.00% | 12.00% |