FNB United Takes Mortgage-Linked Charge

FNB United Corp., Asheboro, N.C., has reported that it took a goodwill impairment charge of $1.8 million ($0.16 per share) in the second quarter related to its Dover Mortgage Co. subsidiary. The charge reduced second-quarter earnings for FNB United to $140,000 ($0.01 per share), compared with net earnings of $3.7 million ($0.33 per share) for the same period a year earlier. FNB United said it made changes to Dover's business model, which included the closing of certain offices that were not accretive to earnings. "Dover is far better structured to succeed in today's mortgage market," said Mike Miller, president and chief executive officer of FNB United. "It is well-positioned to take advantage of its 20-plus-year experience in FHA and government-backed mortgages, along with its menu of conforming and reverse mortgages." Dover can be found on the Web at http://www.dovermortgage.com.