Commitments And Contingencies

12 Months Ended

Dec. 31, 2011

Commitments And Contingencies [Abstract]

Commitments And Contingencies

Note 11 – Commitments and Contingencies

In the ordinary course of operations, FNB and its subsidiaries are party to various legal proceedings. On March 6, 2012, Howe Barnes Hoefer & Arnett, Inc., an affiliate of Raymond James Financial, Inc., filed a complaint in Wake County Superior Court in North Carolina seeking monetary damages against FNB and CommunityOne. The complaint alleges, among other things, breach of an agreement among FNB, CommunityOne, Howe Barnes and Sandler O'Neill & Partners, L.P., reformation of such agreement due to mutual mistake, and breach of a financial advisory agreement between FNB and Howe Barnes. We believe that we have substantive defenses and intend to vigorously defend the action. In addition, from time to time, we are subject to various claims, lawsuits, disputes with third parties, investigations and pending actions involving various allegations against us incident to the operation of our business. FNB and its subsidiaries are not involved in, nor have they terminated during 2011, any pending legal proceedings other than routine, nonmaterial proceedings occurring in the ordinary course of business.

FNB leases certain facilities and equipment for use in its business. The lease for facilities generally runs for periods of 10 to 20 years with various renewal options, while leases for equipment generally have terms not in excess of 5 years. The majority of the leases for facilities contain rental escalation clauses tied to changes in price indices. Certain real property leases contain purchase options. Management expects that most leases will be renewed or replaced with new leases in the normal course of business.

Future obligations at December 31, 2011 for minimum rentals under non-cancelable operating lease commitments, primarily relating to premises, are as follows:

(dollars in thousands)
Year ending December 31,
2012	$	1,510
2013		1,271
2014		1,169
2015		1,087
2016		998
Thereafter		10,172
Total lease commitments	$	16,207

Net rental expense for all operating leases amounted to $1.7 million, $1.6 million, and $1.6 million for the years ended December 31, 2011, 2010 and 2009, respectively.