FNB United Corp. (NASDAQ: FNBN), parent of CommunityONE Bank, N.A., announced continued progress in its integration of recent acquisitions United Financial, Inc., and Integrity Financial, Inc. As part of the integration, CommunityONE Bank has sold its credit card portfolio, along with multiple portfolios acquired from former Integrity and United subsidiaries, to Élan Financial Services, a division of US Bank (NYSE: USB).
As a result of the sale, FNB United Corp will recognize a $1.3 million non-recurring gain which will be reported with its third quarter results. Of that amount, $1.0 million will be from the sale of the portfolio and $300,000 resulting from the recapture of the allowance for loan loss reserve associated with the $4.0 million sold portfolio. Concurrently, a $250,000 expense has been recognized to cover the buyout of two of the unexpired contracts with Visa.
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