FNB Financial Services Corp. of Greensboro, N.C., said first-quarter earnings dropped 70%, to $697,000, because of a spike in nonperforming loans.
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The $1 billion-asset company said Tuesday that its nonperformers rose 59%, to $14.8 million.
On Feb. 27, FNB announced a deal to sell itself to the $987 million-asset LSB Bancshares Inc. of Lexington, N.C., for $125 million in stock. Pressley A. Ridgill, FNB's chief executive officer, said in a press release that it hopes to work through the asset quality issues before selling itself, "so the resulting company will not be burdened with significant ongoing credit quality issues."
FNB also said Tuesday that it would sell two Virginia branches to New Peoples Bankshares Inc. of Honaker, Va.
