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ohhh.. No kidding. Let me get you the web page link that holds the list.
I would be e-mailing them that information. I just found the "list" and am not sure if it is a q update or monthy updated list. Just figured I would share that info.
It is my new strategy to get into these troubled banks..... Great risk/reward with them IMO. But if there is no risk here I will move on!
http://problembanklist.com/
Just click on the problem bank list on the top tab. Should take you right to it. If I messed up the link let me know.
The list needs some updating.
On October 21, 2011, FNB United completed its $310 million capital raise. With the completion of the recapitalization of the Company, and the contribution by the Company of $232.5 million in cash capital to the Bank, the Bank is in compliance with the capital ratios required in the Order and has been designated as “adequately capitalized” as of October 21, 2011.
http://sec.gov/Archives/edgar/data/764811/000119312511306219/d239118d10q.htm
Your bank is stil on the un-oficial failing list!
4879 1,638,891 N OCC Communityone Bank, National Association Asheboro NC 7/22/2010 Consent Order CRE lending FNBN
http://cr4re.com/PBL12162011.html
FNBN meets continued listing requirement (11/30/11)
By letter, dated November 30, 2011, The Nasdaq Stock Market notified FNB United Corp. (the “Company”) that the Company has met the requirements for continued listing on The Nasdaq Stock Market, where it trades under the symbol “FNBN.”
http://sec.gov/Archives/edgar/data/764811/000117184311003709/f8k_121211.htm
Carlyle and Oak Hill Capital each hold approximately 23%.
Warrant Offering
Distributed, not earlier than January 1, 2012, to each holder of record of our common stock as of the close of business on October 20, 2011, or the business day immediately preceding the closing date of the Merger, non-transferable warrants to purchase common stock from the Company. As a result of the Reverse Stock Split, each shareholder will receive a warrant to purchase one share of our common stock for every 400 shares of common stock held as of October 20, 2011, at an exercise price of $16.00 per share.
http://sec.gov/Archives/edgar/data/764811/000119312511317299/d257321ds1.htm
Recapitalization (10/21/11)
— a capital raise of $310 million in a private placement, or the Private Placement, at a price of $0.16 per share (the per-share price prior to the effect of the Reverse Stock Split), with investments from (1) affiliates of each of The Carlyle Group, or Carlyle, and Oak Hill Capital Partners, or Oak Hill Capital and, together with Carlyle, referred to in this prospectus as the Anchor Investors, pursuant to investment agreements with each of the Anchor Investors, or collectively, the Investment Agreements, and (2) various other investors, including certain of our directors and officers, or the Additional Investors and, together with the Anchor Investors, the Investors, pursuant to subscription agreements, or the Subscription Agreements, with each of such Additional Investors;
— concurrently with the Private Placement, (1) the exchange of 51,500 shares of our Fixed Rate Cumulative Perpetual Preferred Stock, Series A par value $10.00 per share and liquidation preference $1,000 per share, held by the Treasury and all accrued and unpaid dividends thereon, for an aggregate of 1,085,554 shares of our common stock, pursuant to an agreement between FNB United and the Treasury, or the TARP Exchange Agreement, and (2) the amendment of the warrant, or the Amended TARP Warrant, issued to the Treasury to purchase 22,072 shares of our common stock at an exercise price of $16.00 per share; and
— the settlement by CommunityONE of the $2.5 million aggregate principal amount of subordinated debt outstanding and held by SunTrust Bank, or SunTrust, for cash in an amount equal to the sum of 35% of the principal amount thereof plus 100% of the unpaid and accrued interest thereon as of the closing date, and the repurchase by CommunityONE from SunTrust of the shares of nonvoting, nonconvertible, nonredeemable cumulative preferred stock of CommunityONE held by SunTrust and having an aggregate liquidation preference of $12.5 million for cash in an amount equal to the sum of 25% of the aggregate liquidation preference plus 100% of the unpaid and accrued dividends thereon as of the closing date.
http://sec.gov/Archives/edgar/data/764811/000119312511317299/d257321ds1.htm
FNBN Announces One-for-One Hundred Reverse Stock Split (11/01/11)
ASHEBORO, N.C., Oct. 31, 2011 (GLOBE NEWSWIRE) -- FNB United Corp. (Nasdaq:FNBN), parent company of CommunityONE Bank, N.A. and Bank of Granite, today announced that it has completed the effectiveness of a one-for-one hundred reverse stock split of its common stock. The reverse stock split was adopted by the Company's board of directors and approved by the Company's shareholders at the 2011 Annual Meeting of Shareholders held on October 19, 2011.
A purpose of reverse stock split is to increase the per share trading price of the Company's common stock to satisfy the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market. As a result of the reverse stock split, every one hundred (100) shares of the Company's common stock issued and outstanding prior to the opening of trading on November 1, 2011 will be consolidated into one (1) issued and outstanding share. No fractional shares will be issued as a result of the reverse stock split. Instead, any fractional share resulting from the reverse stock split will be rounded up to the next largest whole share.
Trading of the Company's common stock on The Nasdaq Capital Market will continue, on a split-adjusted basis, with the opening of the markets on Tuesday, November 1, 2011, under new CUSIP number 302519 202. Shares of the Company's common stock will trade under the symbol "FNBND" for a period of 20 trading days, to designate that it is trading on a post-reverse split basis. The common shares will resume trading under the symbol "FNBN" after that 20-day period. Immediately subsequent to the reverse stock split, there will be approximately 21,096,390 of the Company's common shares issued and outstanding.
The Company has retained its transfer agent, Registrar & Transfer Company (R&T), to act as its exchange agent for the reverse split. R&T will provide shareholders of record as of the effective date a letter of transmittal providing instructions for the exchange of their certificates. Shareholders owning shares via a broker or other nominee will have their positions automatically adjusted to reflect the reverse stock split, subject to brokers' particular processes, and will not be required to take any action in connection with the reverse stock split. Shareholders should not destroy any stock certificates and should not submit any certificates for exchange until requested to do so in accordance with the materials to be distributed by R&T.
Former Bank of Granite Corporation stockholders that have the right to receive shares of the Company's common stock as merger consideration in connection with the Company's acquisition of Bank of Granite on October 21, 2011 will receive their shares on a split-adjusted basis.
For more information regarding the Company's reverse stock split, please refer to the Joint Proxy Statement/Prospectus dated September 15, 2011, filed by the Company with the Securities and Exchange Commission on September 16, 2011.
About FNB United Corp.
FNB United Corp. is the Asheboro, N.C.-based bank holding company for CommunityOne Bank, N.A. and Bank of Granite. Opened in 1907, CommunityOne Bank operates 45 offices in 38 communities throughout central, southern and western North Carolina, and offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and internet banking services. Founded in 1906, Bank of Granite operates 18 full-service banking offices in seven North Carolina counties—Burke, Caldwell, Catawba, Iredell, Mecklenburg, Watauga and Wilkes.
CONTACT: Dave Nielsen (336) 626-8343
Dave.Nielsen@MyYesBank.com
http://sec.gov/Archives/edgar/data/764811/000117184311003199/newsrelease.htm
EI;
I notied SCT posted its earnings report on its site.. Did you sell all SKRRF?
What potential do you see in this puppy?
tia
GL
FNB United Corp. Announces Full Subscription of $310 Million Common Stock Private Placement
7:46a ET August 2, 2011 (GlobeNewswire)
Completion of Capital Raise Fulfills Key Contingency for FNB Acquisition
of Bank of Granite
Regulatory and Shareholder Approvals Represent Next Steps in the Merger
Process
ASHEBORO, N.C., Aug. 2, 2011 (GLOBE NEWSWIRE) -- FNB United Corp. (Nasdaq:FNBN), parent company of CommunityONE Bank, N.A., today announced that investors have agreed to subscribe for a total of $310 million in company common stock in a private placement, contingent on obtaining shareholder and regulatory approvals and satisfaction of other conditions. Issuance of the common stock at $0.16 per share will complete the recapitalization of FNB United, which is a key contingency in its plan to acquire Bank of Granite Corporation (Nasdaq:GRAN), parent company of Bank of Granite.
The proposed acquisition will unite two 100-year-old institutions, creating a North Carolina community banking organization with approximately $2.8 billion in assets, $2.4 billion in deposits and 63 full-service banking offices located in some of the state's most robust markets. The transaction remains subject to receipt of regulatory approvals and shareholder approval of both banking companies.
"Completion of the capital raise is a significant event for community banking in North Carolina," said Brian Simpson, who will serve as CEO of the combined organization. "Two banking companies that have served their communities faithfully for more than 100 years will be revitalized so that the traditions of service to business owners and consumers can continue. We believe this is positive news for each of the communities served by CommunityONE and Bank of Granite and for our entire state."
The Carlyle Group and Oak Hill Capital Partners are lead investors in the capital raise, each having entered into definitive agreements with FNB United to invest $79 million, each subject to conditions contained in the investment agreements. FNB United has now entered into additional definitive subscription agreements with additional investors providing the investment of the remaining capital of $152 million, subject to conditions contained in the subscription agreements.
Jim Burr, Managing Director of The Carlyle Group, said: "This strong and experienced leadership team is well positioned to address current challenges and build for the future. The revitalization of any bank franchise begins with seasoned leadership, and Brian, Bob and their team have the depth and breadth of experience needed for this opportunity."
FNB United will be headquartered in Asheboro, N.C. Subject to the satisfaction or waiver of the remaining conditions, the transaction is expected to close in October of 2011. The two bank subsidiaries (CommunityONE and Bank of Granite) will be operated as separate entities for a period of time; it is anticipated that the merged bank will be named CommunityONE Bank, N.A. at a future date to be determined.
"Brian and I have been gratified by the response we have received from the investment community," said Bob Reid, who will serve as President of the combined banking company. "A great deal of work remains ahead, but with this commitment of capital and the talented teams being put in place at CommunityONE and Bank of Granite, we believe that the resulting institution will be positioned to effectively serve its communities in the future."
Jim Campbell, Chairman of FNB United, said: "I would like to commend all of our employees for their commitment to customer service as we have navigated through these challenging times. This focus on the customer has been invaluable in assuring that we are well positioned for the revitalization that is planned with our new capital and our new banking partners."
John Bray, Chairman of Bank of Granite, said: "The success of the capital raise is great news for our customers, our employees and the communities we serve. CommunityONE and Bank of Granite have long traditions of personalized service that is a hallmark of community banking. The addition of capital and the merger of our organizations will ensure that this spirit lives on."
The Transaction
FNB United Corp. will be operated by new management after the recapitalization and merger, led by Brian Simpson as Chief Executive Officer and Bob Reid as President.
The merger agreement provides that Bank of Granite shareholders will receive 3.375 shares of FNB United Corp.'s common stock in exchange for each share of Bank of Granite common stock they own immediately prior to completion of the merger.
Completion of the merger and the investments are dependent on each other and the satisfactory completion of a number of other conditions, including the exchange of FNB preferred stock held by the U.S. Treasury for FNB common stock on the terms specified in the merger and investment agreements, CommunityONE having repurchased SunTrust's outstanding debt and preferred stock on the terms specified in the agreements, receipt of regulatory approvals, the approval of the shareholders of both FNB United Corp. and Bank of Granite Corporation, and FNB and Bank of Granite meeting specified financial condition requirements contained in the merger and investment agreements.
Sandler O'Neill & Partners, L.P. and Raymond James & Associates, Inc. are acting as placement agents in connection with the private placement of the FNB United common stock.
About FNB United Corp.
FNB United Corp. is the Asheboro, N.C.-based bank holding company for CommunityONE Bank, N.A. Opened in 1907, CommunityONE Bank operates 45 offices in 38 communities throughout central, southern and western North Carolina, and offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and internet banking services.
About Bank of Granite Corporation
Bank of Granite Corporation is the parent company of Bank of Granite. Founded in 1906, Bank of Granite operates 18 full-service banking offices in seven North Carolina counties -- Burke, Caldwell, Catawba, Iredell, Mecklenburg, Watauga and Wilkes.
FNBN Announces Second Quarter Results (8/09/11)
ASHEBORO, N.C., Aug. 9, 2011 (GLOBE NEWSWIRE) -- FNB United Corp. (Nasdaq:FNBN), the holding company for CommunityOne Bank, N.A., today reported a net loss of $50.1 million, or $(4.38) per basic and diluted share, for the second quarter of 2011, compared to a net loss of $25.7 million, or $(2.26) per basic and diluted share, for the second quarter a year ago. Second quarter 2011 results include a $33.6 million provision for loan losses and $10.6 million in OREO-related expenses. For the first six months of the year, following a $53.8 million provision for loan losses and $26.8 million in OREO-related expenses, FNB United reported a net loss of $94.8 million, or $(8.30) per basic and diluted share, compared to a net loss of $30.1 million, or $(2.64) per basic and diluted share, in the first six months of 2010.
"Significant progress continues to be made to reduce the level of (nonperforming assets)," said R. Larry Campbell, Interim President and CEO. Nonperforming assets declined by $82.8 million, or 21.1%, from record levels of $392.3 million at December 31, 2010. In addition, 30-89 days past due and still accruing loans have declined significantly from $24.8 million at December 31, 2010 to $2.5 million at June 30, 2011. "Our progress in reducing NPAs and delinquencies was an important step to the completion of the $310 million capital raise that we announced last week," added Campbell.
Asset Quality and Provision for Loan Losses
FNB United recorded a $33.6 million provision to its allowance for loan losses in the second quarter, compared to a $20.2 million provision in the previous quarter and $27.2 million in the second quarter a year ago. The provision in the second quarter was the result of continued deterioration in collateral values of impaired loans and recognizing credit quality trends in the portfolio. "As we continue our efforts to get problem assets to manageable levels, the Company experienced $36.8 million in charge-offs in the second quarter of 2011, of which $23.0 million was reserved at March 31, 2011," said Campbell. Real estate construction and commercial real estate loans comprised 47.1% and 30.7%, respectively, of the charge-offs during the second quarter of 2011. Net charge-offs were $42.9 million, or 15.06% of average loans annualized, as of June 30, 2011, while net charge-offs were $45.1 million, or 14.48% of average loans annualized, in the previous quarter and $13.6 million, or 3.54% of average loans annualized, in the second quarter a year ago.
The allowance for loan losses was $59.4 million, or 5.83% of loans held for investment, at June 30, 2011, compared to $93.7 million, or 7.18%, at December 31, 2010, and $69.8 million, or 4.58%, at June 30, 2010. The decrease from 7.18% at December 31, 2010 to 5.83% at June 30, 2011 was the result of improvements in certain credit quality measures.
Nonperforming assets totaled $309.4 million, or 18.0% of total assets, at June 30, 2011, compared to $360.1 million, or 19.7% of total assets, three months earlier and $272.5 million, or 13.5%, of total assets at June 30, 2010. Nonperforming assets include all nonperforming loans, all loans over 90 days delinquent and still accruing, and other real estate owned. FNB United's other real estate owned and repossessed loan collateral was $101.5 million at quarter-end, compared to $67.5 million in the previous quarter, and $42.1 million at June 30, 2010.
Loans delinquent 30 to 89 days were $2.5 million as of June 30, 2011, compared to $24.8 million at December 31, 2010, and $19.0 million at June 30, 2010. The Bank did not have any loans 90 days or more past due and still accruing at June 30, 2011. The Bank had loans 90 days or more past due and still accruing of $4.8 million at December 31, 2010.
During the past year, the Bank has significantly increased staff and engaged third-party contractors in its special assets division to manage the process of reducing the level of nonperforming assets. These individuals are all experienced in loan restorations and resolutions and well equipped to resolve credit problems through forbearance, restructuring and modification agreements as well as note sales.
Net Interest Income
Second quarter 2011 net interest income before the provision for loan losses was $9.2 million, compared to $9.2 million in the preceding quarter and $13.9 million in the second quarter a year ago. FNB United's net interest margin was 2.26% for the second quarter of 2011 compared to 2.13% in the immediate prior quarter and 3.08% in the second quarter a year ago. The increase in the net interest margin in the second quarter 2011 of 13 basis points was primarily attributable to an increase of 16 basis points in the average yield on commercial loans due to less loans being put on nonaccrual and the related reversal of interest income. The yield on interest earning assets increased 14 basis points compared to the previous quarter while the cost of interest-bearing liabilities decreased by three basis points. For the first six months of 2011, net interest income before the provision for loan losses was $18.4 million, compared to $29.3 million in the first six months of 2010.
Noninterest Income
Total noninterest income was $3.3 million for the second quarter 2011, compared to $3.7 million in the previous quarter and $5.3 million in the second quarter a year ago. Mortgage loan income decreased $0.5 million, when compared to the second quarter 2010, and is attributable to a drop in loan production volume throughout 2011 and discontinuance of Dover operations. In addition, there was a decrease in net securities gains of $0.9 million and a decline of $0.5 million in service charges on deposit accounts due to reduced economic activity as well as the new "Opt-In" Regulation E changes that became effective for new and existing deposit customers this past year.
Noninterest income was $6.9 million for the first half of 2011 compared to $10.0 million in the first half of 2010. There was a decrease in net securities gains of $1.6 million and a decline of $1.0 million in service charges on deposit accounts. Mortgage loan income decreased by $0.7 million.
Noninterest Expense
Total noninterest expense was $26.3 million in the second quarter of 2011, compared to $32.9 million in the preceding quarter and $19.2 million in the second quarter a year ago. The decrease in the second quarter 2011 versus the first quarter 2011 of $6.6 million was primarily due to a decrease in expenses related to other real estate owned of $5.6 million. The increase in the second quarter 2011 versus the second quarter 2010 of $7.1 million was primarily attributed to an increase of $6.0 million in OREO-related expenses and an increase of $0.8 million in FDIC insurance.
For the first half of 2011, total noninterest expense increased to $59.1 million, compared to $32.7 million in the first half of 2010. This increase of $26.3 million in noninterest expense is primarily attributed to an increase of $21.7 million in OREO-related expenses, an increase of $1.9 million in FDIC insurance and an increase of $1.6 million in professional fees. The increase in professional fees was primarily due to expenses associated with regulatory compliance and audits, as well as legal and consulting fees that will continue as a direct result of the Company's ongoing financial condition and recapitalization efforts.
Loans Held for Investment
Loans held for investment were $1.02 billion at June 30, 2011, compared to $1.52 billion a year earlier. Commercial loans have decreased $446.8 million. Residential loans decreased $23.0 million, primarily due to the sale of residential loans in December 2010. The Company continues to execute a strategy commenced in 2008 to reduce concentrations in acquisition and development loans and non-owner occupied commercial real estate loans. Acquisition and development loans have decreased 65.8% from $413.1 million at December 31, 2008 to $141.5 million at June 30, 2011, while non-owner occupied commercial real estate loans have decreased 32.4% from $203.4 million at December 31, 2008 to $137.5 million at June 30, 2011.
Deposits
Total deposits decreased 6.9% to $1.60 billion at June 30, 2011, compared to $1.72 billion a year ago. Certificates of deposit decreased 8.3% to $891.8 million, from $972.2 million a year ago while other deposits decreased 5.1% to $713.1 million at June 30, 2011, compared to $751.6 million a year earlier. Brokered certificates of deposits were $129.0 million at June 30, 2011, which was 8.0% of total deposits, compared to $111.6 million at June 30, 2010, or 6.5% of deposits.
Capital Levels and Shareholders' Equity
The Bank has been designated critically undercapitalized for regulatory purposes as of April 29, 2011, the date of its first quarter Report of Condition and Income filed with the FDIC. The Bank had a Tangible Equity Ratio of (3.44) % as of June 30, 2011. The Company's book value per share was $(15.70) at quarter-end compared to $1.76 a year earlier, and tangible book value per share was $(16.03) at quarter-end, compared to $1.36 a year earlier.
About the Company
FNB United Corp. is the Asheboro, North Carolina based bank holding company for CommunityOne Bank, N.A. Opened in 1907, CommunityOne (www.MyYesBank.com) operates 45 offices in 38 communities throughout central, southern and western North Carolina. Through its subsidiary, FNB United offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and internet banking services.
http://globenewswire.com/newsroom/news.html?d=229088
Interesting! Selling stox @0.16. But low volume day trades above 0.40..
When is the cut off day to be eligible?
"FNB Corp. (NC) announces full subscription of $310 mln common stock private placement (FNBN) 0.49 : Issuance of the common stock at $0.16/share will complete the recapitalization of FNB United, which is a key contingency in its plan to acquire Bank of Granite Corporation (GRAN), parent company of Bank of Granite. "
FNBN Announces Full Subscription of $310 Million Private Placement (8/02/11)
Completion of Capital Raise Fulfills Key Contingency for FNB Acquisition of Bank of Granite
Regulatory and Shareholder Approvals Represent Next Steps in the Merger Process
ASHEBORO, N.C., Aug. 2, 2011 (GLOBE NEWSWIRE) -- FNB United Corp. (Nasdaq:FNBN), parent company of CommunityONE Bank, N.A., today announced that investors have agreed to subscribe for a total of $310 million in company common stock in a private placement, contingent on obtaining shareholder and regulatory approvals and satisfaction of other conditions. Issuance of the common stock at $0.16 per share will complete the recapitalization of FNB United, which is a key contingency in its plan to acquire Bank of Granite Corporation (Nasdaq:GRAN), parent company of Bank of Granite.
The proposed acquisition will unite two 100-year-old institutions, creating a North Carolina community banking organization with approximately $2.8 billion in assets, $2.4 billion in deposits and 63 full-service banking offices located in some of the state's most robust markets. The transaction remains subject to receipt of regulatory approvals and shareholder approval of both banking companies.
"Completion of the capital raise is a significant event for community banking in North Carolina," said Brian Simpson, who will serve as CEO of the combined organization. "Two banking companies that have served their communities faithfully for more than 100 years will be revitalized so that the traditions of service to business owners and consumers can continue. We believe this is positive news for each of the communities served by CommunityONE and Bank of Granite and for our entire state."
The Carlyle Group and Oak Hill Capital Partners are lead investors in the capital raise, each having entered into definitive agreements with FNB United to invest $79 million, each subject to conditions contained in the investment agreements. FNB United has now entered into additional definitive subscription agreements with additional investors providing the investment of the remaining capital of $152 million, subject to conditions contained in the subscription agreements.
Jim Burr, Managing Director of The Carlyle Group, said: "This strong and experienced leadership team is well positioned to address current challenges and build for the future. The revitalization of any bank franchise begins with seasoned leadership, and Brian, Bob and their team have the depth and breadth of experience needed for this opportunity."
FNB United will be headquartered in Asheboro, N.C. Subject to the satisfaction or waiver of the remaining conditions, the transaction is expected to close in October of 2011. The two bank subsidiaries (CommunityONE and Bank of Granite) will be operated as separate entities for a period of time; it is anticipated that the merged bank will be named CommunityONE Bank, N.A. at a future date to be determined.
"Brian and I have been gratified by the response we have received from the investment community," said Bob Reid, who will serve as President of the combined banking company. "A great deal of work remains ahead, but with this commitment of capital and the talented teams being put in place at CommunityONE and Bank of Granite, we believe that the resulting institution will be positioned to effectively serve its communities in the future."
Jim Campbell, Chairman of FNB United, said: "I would like to commend all of our employees for their commitment to customer service as we have navigated through these challenging times. This focus on the customer has been invaluable in assuring that we are well positioned for the revitalization that is planned with our new capital and our new banking partners."
John Bray, Chairman of Bank of Granite, said: "The success of the capital raise is great news for our customers, our employees and the communities we serve. CommunityONE and Bank of Granite have long traditions of personalized service that is a hallmark of community banking. The addition of capital and the merger of our organizations will ensure that this spirit lives on."
The Transaction
FNB United Corp. will be operated by new management after the recapitalization and merger, led by Brian Simpson as Chief Executive Officer and Bob Reid as President.
The merger agreement provides that Bank of Granite shareholders will receive 3.375 shares of FNB United Corp.'s common stock in exchange for each share of Bank of Granite common stock they own immediately prior to completion of the merger.
Completion of the merger and the investments are dependent on each other and the satisfactory completion of a number of other conditions, including the exchange of FNB preferred stock held by the U.S. Treasury for FNB common stock on the terms specified in the merger and investment agreements, CommunityONE having repurchased SunTrust's outstanding debt and preferred stock on the terms specified in the agreements, receipt of regulatory approvals, the approval of the shareholders of both FNB United Corp. and Bank of Granite Corporation, and FNB and Bank of Granite meeting specified financial condition requirements contained in the merger and investment agreements.
Sandler O'Neill & Partners, L.P. and Raymond James & Associates, Inc. are acting as placement agents in connection with the private placement of the FNB United common stock.
About FNB United Corp.
FNB United Corp. is the Asheboro, N.C.-based bank holding company for CommunityONE Bank, N.A. Opened in 1907, CommunityONE Bank operates 45 offices in 38 communities throughout central, southern and western North Carolina, and offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and internet banking services.
About Bank of Granite Corporation
Bank of Granite Corporation is the parent company of Bank of Granite. Founded in 1906, Bank of Granite operates 18 full-service banking offices in seven North Carolina counties – Burke, Caldwell, Catawba, Iredell, Mecklenburg, Watauga and Wilkes.
http://globenewswire.com/newsroom/news.html?d=228238
Merger notice...deal to close by 9/30/11...LINK
http://seekingalpha.com/article/281494-merger-arbitrage-mondays-july-25-2011?source=marketwatch
when they dilute ...should we see a large decrease in pps to around .16-.22 ...lets use .20...for each share of gran we own we will get 3.75 shares of fnbn which would be worth .75 is that correct...if so wont the price of gran keep going down to a comparable price from the day the announced the merger???
As part of this transaction, The Carlyle Group and Oak Hill Capital Partners, two private equity firms with a history of successful investing in the financial services sector, have each entered into definitive agreements with FNB United to invest $77.5 million in the common stock of FNB United subject to the conditions set forth in the agreements as part of a $310 million private placement of FNB United's common stock. The Carlyle Group and Oak Hill Capital Partners will each receive approximately 484 million shares of common stock at the closing not to exceed 24.9 percent of the then-outstanding shares of common stock, valued at $0.16 a share.
=============
Carlyle & Oak Hill will have a combined ownrship of 49.8%. Why just 49.8%? IRS Section 382 (Change of control) requires a new owner to own less than 50% of the stock to take advantage of the NOL's.
http://www.taxalmanac.org/index.php/Sec._382._Limitation_on_net_operating_loss_carryforwards_and_certain_built-in_losses_following_ownership_change
This merger is good news but with 49.8% of the stock selling for .16...that tells us what the value is. Add a slight premium of .02 ~ .04 and that's what it's real value is the day of completion. .18 ~ .20.
FNBN will be dilluted.....prior.
wow....I'M THE FIRST TO ASK THIS QUESTION????NOT ONLY THAT I AM REALLY THE FIRST....PERIOD...LOLTHIS BANK IS MERGING WITH GRAN AND FOR EVERY SHARE YOU HOLD OF "GRAN" YOU GET 3.75 SHARES OF THIS ...FNBN...BUT WHAT HAPPENS IF YOU ONLY HOLD FNBN????? AND HOW CAN THAT BE DONE IF THE A/S IS ONLY 1/3 OF GRAN A/S ITS LIKE 6MIL FNBN AND 15MIL GRAN...WHAT AM I MISSING????
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CommunityOne Bancorp is the North Carolina-based bank holding company for CommunityOne Bank, N.A. (community1.com), which offers a full range of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth and online banking services through 55 branches in 44 communities throughout the central, southern and western regions of the state.
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