As a result of the sale, FNB United will recognize a $1.3 million non-recurring gain, which will be reported with its third quarter results. Of that amount, $1 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 million sold portfolio. Concurrently, a $250,000 expense has been recognized to cover the buyout of two of the unexpired contracts with Visa.
Mark Hensley, chief banking officer of CommunityONE, said: This new partnership with Elan will significantly increase the number and quality of credit card offerings to the bank’s retail and commercial customers. We will be far more competitive in the credit card arena than we’ve ever been. Retail customers will be provided with seven different products, including Visa Platinum, Secured Visa and Visa Signature products.
Michael Miller, president of FNB United, added: The unification of credit card programs is an example of the progress we are making in bringing these companies together as a single team. We are improving product offerings and at the same time reducing expense, operating more efficiently, and reducing risk.
