Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note 4 – Discontinued Operations

All operations of Dover, a subsidiary of CommunityOne, were discontinued as of March 17, 2011. Dover, acquired by FNB in 2003, originated, underwrote and closed mortgage loans for sale into the secondary market. It maintained a retail origination network based in Charlotte, North Carolina, which originated loans for properties located in North Carolina. Dover also engaged in the wholesale mortgage origination business and conducted retail mortgage origination business outside of North Carolina. Operations outside of the State of North Carolina and the wholesale mortgage origination business were discontinued in February 2011, and all remaining operations were discontinued on March 17, 2011. Dover filed for Chapter 11 bankruptcy on February 15, 2012 in the United States Bankruptcy Court for the Western District of North Carolina. All of the assets and liabilities of Dover were written off at that time.

The results of operations of a component of an entity that has been disposed of shall be reported in discontinued operations if both the operations and cash flows of the component have been, or will be, eliminated from ongoing operations of the entity as a result of the disposal transaction and the entity will not have any significant continuing involvement in the operations of the component after the disposal transaction.

In determining whether Dover met the conditions for a discontinued operation, we considered the relevant accounting guidance and concluded that the conditions were met during the first quarter of 2011. We determined that Dover has discontinued operating activities and, as such, the assets and liabilities of Dover are presented as discontinued assets and discontinued liabilities and the results of operations directly related to Dover's activity are presented as discontinued operations for all periods. As a result, the Consolidated Balance Sheets, Statements of Operations and Statement of Cash Flows for all periods reflect retrospective application of Dover's classification as a discontinued operation.

Assets and liabilities of discontinued operations as of December 31, 2011 and 2010 were as follows:

(dollars in thousands)	December 31, 2011		December 31, 2010
Assets
Loans held for sale	$	233	$	37,079
Premises and equipment, net		5		169
Other real estate owned		—		168
Other assets		7		1,673
Assets of discontinued operations	$	245	$	39,089
Liabilities
Other liabilities	$	1,092	$	1,901
Liabilities of discontinued operations	$	1,092	$	1,901

Net (loss)/income from discontinued operations, net of tax, for the years ended December 31, 2011, 2010, and 2009 were as follows:

(dollars in thousands)	For the Twelve Months Ended December 31,
	2011			2010			2009
Interest Income
Interest and fees on loans	$	67		$	552		$	1,661
Total interest income		67			552			1,661
Interest Expense
Other borrowed funds		—			—			—
Total interest expense		—			—			—
Net Interest Income before Provision for Loan Losses		67			552			1,661
Provision for loan losses		—			—			232
Net Interest Income after Provision for Loan Losses		67			552			1,429
Noninterest Income
Mortgage loan (loss)/income		(167	)		3,390			8,308
Other service charges, commissions and fees, net		(11	)		(37	)		11
Other income		10			12			(8	)
Total noninterest (loss)/income		(168	)		3,365			8,311
Noninterest Expense
Personnel expense		1,444			4,429			5,847
Net occupancy expense		237			263			225
Furniture, equipment and data processing expense		186			312			305
Professional fees		257			228			182
Stationery, printing and supplies		8			35			96
Advertising and marketing		27			155			180
Other real estate owned expense		166			—			—
Provision for recourse loans		3,317			666			—
Other expense		266			(765	)		1,462
Total noninterest expense		5,908			5,323			8,297
(Loss)/Income before income taxes		(6,009	)		(1,406	)		1,443
Income tax (benefit)/expense		(213	)		—			578
Net (Loss)/Income from Discontinued Operations, net of tax	$	(5,796	)	$	(1,406	)	$	865

All financial information in the consolidated financial statements and notes to the consolidated financial statements reflect continuing operations, unless otherwise noted.