FNBN » Topics » ITEM 2.06. Material Impairments

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 2009.


ITEM 8.01.  Other Events

          On 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.


ITEM 9.01.  Financial Statements and Exhibits

  Exhibits:
 
99.1 News release dated October 5, 2009
 
99.2 Letter to Shareholders dated October 5, 2009

SIGNATURES

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.

FNB UNITED CORP.

 

 
Date: October 5, 2009 By:

/s/ Mark A. Severson

Mark A. Severson

Executive Vice President and

Treasurer

(Principal Financial and

Accounting Officer)


INDEX TO EXHIBITS

Exhibit No.

Description

 
99.1

News Release dated October 5, 2009

 

99.2

Letter to Shareholders dated October 5, 2009

This excerpt taken from the FNBN 8-K filed Jul 28, 2008.

ITEM 2.06.     Material Impairments

On July 22, 2008, FNB United Corp. concluded that a material charge for impairment of the goodwill of its indirect subsidiary, Dover Mortgage Company, is required.  During the second quarter of 2008, FNB United commenced an impairment evaluation of the goodwill of Dover Mortgage Company as a result of changes in Dover’s operations and business model, including the discontinuance of certain retail offices and loss of personnel at those locations.  FNB United has elected to take a non-cash impairment charge of $1.8 million (pre-tax and after-tax), and the non-cash charge is being recorded as a component of noninterest expense for the second quarter of 2008.

EXCERPTS ON THIS PAGE:

8-K
Oct 6, 2009
8-K
Jul 28, 2008

"ITEM 2.06. Material Impairments" elsewhere:

Peapack-Gladstone Financial (PGC)
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