FNB Corp. is a bank holding company for its wholly-owned bank subsidiary First National Bank and Trust Company a national banking association. Some of the major banking services offered include regular checking accounts interest checking accounts money market accounts savings accounts certificates of deposit holiday club accounts individual retirement accounts debit cards credit cards and loans both secured and unsecured for business agricultural and personal use. Other services offered include internet banking cash management investment and trust services. Fnb United Corp. has a market cap of $22.3 million; its shares were traded at around $1.95 with and P/S ratio of 0.1. Fnb United Corp. had an annual average earning growth of 0.4% over the past 5 years.
Highlight of Business Operations:The Company s total assets at September 30, 2009, were $2.2 billion, an increase of 7%, or $149.5 million from year-end 2008. Investments grew $121.4 million, or 52%, reflecting the Company s leveraging strategy to offset the earnings dilution resulting from participation in the Capital Purchase Program. Loans held for sale increased $16.4 million, or 45%, due to refinancing of residential mortgages. Gross loans held for investment totaled $1.6 billion at September 30, 2009, essentially flat from the prior year end.
Total deposits grew $207.0 million, to $1.7 billion in 2009, representing an 14% increase due primarily to increased consumer use of deposit account products in the current economic environment and an increase in the general consumer rate of savings. Borrowings decreased $31.6 million or 9%, during the first nine months of 2009, compared to the period ended December 31, 2008. Total shareholders equity decreased $19.3 million from the December 31, 2008 level, primarily as a result of $52.4 million goodwill impairment charge.
The Company experienced a net loss of $75.7 million in the first nine months of 2009 compared to net income of $0.8 million for the same period in 2008 and is primarily the result of a $24.8 million increase in the provision for loan losses and a $52.4 million goodwill impairment charge. These losses were partially offset by a net income tax benefit of $6.8 million. The Bank established a $6.0 million valuation reserve on deferred tax asset in the third quarter 2009. FDIC insurance expense increased $2.7 million over the prior year as a result of a FDIC special assessment imposed as part of the Deposit Insurance Fund restoration plan and increase in the Bank s deposit base.
Noninterest income increased 3% to $16.1 million for the first nine months in 2009, compared to $15.7 million for the same period in 2008. Income from mortgage loan income increased by $4.7 million attributable to sizable increases in 2009 production driven by refinancing activity. These increases were partially offset by a $5.0 million OTTI charge on an investment security owned by the Bank that the Bank deemed would be unlikely to recover its investments. Excluding the OTTI charge, noninterest income increased $5.4 million or 34%.
Noninterest expense for year-to-date 2009 was $51.1 million, excluding the 2009 goodwill impairment charge of $52.4 million, compared to $46.5 million in 2008, which also excludes a 2008 goodwill impairment charge of $1.8 million. This 10% growth can be attributed to a $2.7 million FDIC insurance expense increase over the prior year as a result of a FDIC special assessment imposed as part of the Deposit Insurance Fund restoration plan and because of the increase in the Bank s deposit base. Also, personnel expense decreased $1.4 million due to a downsizing of staff
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