This excerpt taken from the FNBN 8-K filed Oct 6, 2009.
ITEM 2.06. Material Impairments
On September 30, 2009, FNB United Corp. concluded that a
material charge for impairment of its goodwill is required. During the
third quarter of 2009, FNB United reviewed the carrying value of its
goodwill in light of the current economic environment, the significant
decline of its common stock price, and the relationship between the
corporation’s net book value and tangible net book value, and determined
to record a non-cash impairment charge of $52.4 million, eliminating the
remaining goodwill on its balance sheet. The non-cash charge is being
recorded as a component of noninterest expense for the third quarter of
October 5, 2009, FNB United Corp. announced that its Board of Directors
voted to discontinue temporarily payment of the corporation’s quarterly
cash dividend to common shareholders. The Board will evaluate resuming
payment of the dividend as warranted by future operating earnings.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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