FNB United Corp. (FNBN, Financial) filed Quarterly Report for the period ended 2012-03-31.
Fnb United Corp has a market cap of $368.4 million; its shares were traded at around $17.34 with and P/S ratio of 4.3.
For the three months ended March 31, 2012, noninterest income, excluding discontinued operations, was $3.8 million compared to $3.7 million for the same period in 2011. The increase was the result of $1.1 million in noninterest income for Granite, offset by declines in service charges on deposits as a result of decreased NSF and overdraft fees, in trust and investment services associated with reductions in assets under management and lower earnings on bank-owned life insurance as a result of the death of an insured participant during the first quarter of 2011.
Cash and interest-bearing balances were $468.5 million at March 31, 2012, a decrease of $84.9 million, or 15.3%, compared to $553.4 million at December 31, 2011 primarily attributable to the purchase of $61.9 million of residential mortgage loans and the purchase of $42.6 million of securities (net of sales and repayments), offset by loan repayments and OREO sales.
Shareholders' equity at March 31, 2012 was $118.0 million as compared to $129.0 million at December 31, 2011. The book value per share was $5.59 and average equity to average assets was 5.33% at March 31, 2012 as compared to a book value per share of $6.11 and average equity to average assets of (1.19)% at December 31, 2011. The change in shareholders' equity reflects a net loss to common shareholders for the first three months ended March 31, 2012 of $10.9 million. FNB United did not declare common dividends during the first three months ended March 31, 2012, and will not be able to pay any dividends until such time as FNB returns to profitability and either receives or is not required to receive regulatory approval for the payment of dividends. FNB United does not expect to pay dividends to shareholders for the foreseeable future.
March 31, 2012, compared to $110.4 million at December 31, 2011, a decline of $6.0 million. During the first quarter of 2012, we recorded net write-downs and net loss on sales of OREO of $3.9 million as compared to $14.3 million during the first quarter of 2011. Depressed market conditions have adversely impacted, and may continue to adversely impact, the financial condition and liquidity position of certain borrowers. Additionally, the value of real estate collateral may come under further pressure from weak economic conditions and prevailing unemployment levels resulting in additional delinquencies and loans being placed on nonaccrual.
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Fnb United Corp has a market cap of $368.4 million; its shares were traded at around $17.34 with and P/S ratio of 4.3.
Highlight of Business Operations:
Net interest margin (taxable equivalent) improved 69 basis points from 2.13% in the first three months of 2011 to 2.82% in the first three months of 2012. The increase was attributable to the impact of the Merger, the impact of management strategies to shift the mix of deposits to lower rate demand, savings and money market deposits and the Granite acquisition, and the reduction of nonperforming loans compared to the first quarter of 2011. The yield on average earning assets increased by 15 basis points during the first quarter of 2012 to 3.71% from 3.56% in the first quarter of 2011. The cost of interest-bearing liabilities declined during the first quarter of 2012 by 48 basis points to 0.97% compared to 1.45% in the first quarter of 2011, primarily as a result of the deposit mix shift and the impact of the accretion of fair value marks at Granite. Importantly, the cost of interest-bearing deposits declined 46 basis points from 1.37% for the first quarter 2011 to 0.91% for the first quarter of 2012.For the three months ended March 31, 2012, noninterest income, excluding discontinued operations, was $3.8 million compared to $3.7 million for the same period in 2011. The increase was the result of $1.1 million in noninterest income for Granite, offset by declines in service charges on deposits as a result of decreased NSF and overdraft fees, in trust and investment services associated with reductions in assets under management and lower earnings on bank-owned life insurance as a result of the death of an insured participant during the first quarter of 2011.
Cash and interest-bearing balances were $468.5 million at March 31, 2012, a decrease of $84.9 million, or 15.3%, compared to $553.4 million at December 31, 2011 primarily attributable to the purchase of $61.9 million of residential mortgage loans and the purchase of $42.6 million of securities (net of sales and repayments), offset by loan repayments and OREO sales.
Shareholders' equity at March 31, 2012 was $118.0 million as compared to $129.0 million at December 31, 2011. The book value per share was $5.59 and average equity to average assets was 5.33% at March 31, 2012 as compared to a book value per share of $6.11 and average equity to average assets of (1.19)% at December 31, 2011. The change in shareholders' equity reflects a net loss to common shareholders for the first three months ended March 31, 2012 of $10.9 million. FNB United did not declare common dividends during the first three months ended March 31, 2012, and will not be able to pay any dividends until such time as FNB returns to profitability and either receives or is not required to receive regulatory approval for the payment of dividends. FNB United does not expect to pay dividends to shareholders for the foreseeable future.
March 31, 2012, compared to $110.4 million at December 31, 2011, a decline of $6.0 million. During the first quarter of 2012, we recorded net write-downs and net loss on sales of OREO of $3.9 million as compared to $14.3 million during the first quarter of 2011. Depressed market conditions have adversely impacted, and may continue to adversely impact, the financial condition and liquidity position of certain borrowers. Additionally, the value of real estate collateral may come under further pressure from weak economic conditions and prevailing unemployment levels resulting in additional delinquencies and loans being placed on nonaccrual.
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