FNB United makes mortgage lending push

FNB United, the Asheboro-based parent of CommunityOne Bank, is making a multi-million-dollar mortgage lending push, originating $31 million in the first quarter and hiring mortgage loan officers in Charlotte, Greensboro and Lenoir.

The bank gave a presentation on its first quarter results Friday morning, but took no questions. While the bank lost nearly $11 million in the period, CEO Brian Simpson said the bank broke even before taxes and provisions.

Its mortgage lending stood 39 percent over the same time period a year ago, and 17 percent over the quarter before. Chief Risk Officer David Lavoie said most of the new mortgages conform to secondary market standards.

FNB United also bought a $62 million mortgage portfolio.

The bank's stock has continued to crumble since its announcement last month that it would sell up to 2 million shares incrementally. It has fallen more than 50 percent since the announcement, standing at $13.48 this afternoon. It's fallen 10 percent so far today.

Simpson said the bank expects to complete its share sales by the end of the month, and will give more information then.

FNB United is also continuing to integrate its acquisition of Bank of Granite, part of a recapitalization plan. Simpson said the bank has completed internal and external reviews of the Bank of Granite loan portfolio.

The bank disclosed that its capital levels are below the mandatory levels determined by regulators as part of enforcement actions.