CommunityOne profit falls on CEO severance

CommunityOne Bancorp on Friday said third-quarter profits fell 23 percent from a year ago, after the Charlotte-based community bank took a $2.1 million charge related to the departure of its chief executive officer.

CommunityOne reported net income of $1.8 million, or 8 cents per share, when including severance payments for former CEO Brian Simpson. His departure was announced last month in a move to slim the bank’s executive ranks.

The bank’s results included a $1.7 million gain resulting from continued improvement in loan-loss rates. In the same period a year ago, the bank set aside $1.8 million as a cushion against loan losses.

In a statement, CEO Bob Reid, formerly the bank’s president, said the quality of the bank’s loan book “continues to track ahead of plan and we expect that to continue.”

CommunityOne was formed by the 2011 merger of Asheboro-based FNB United Corp and Granite Falls-based Bank of Granite.