CommunityOne Bancorp fka COB

[Enterprising Investor]

FNBN Cease and Desist Order Lifted by FDIC (3/01/13)

GRANITE FALLS, N.C., March 1, 2013 (GLOBE NEWSWIRE) -- Bank of Granite announced today that the FDIC has terminated its Cease and Desist Order issued against the Bank, effective February 27, 2013.

"We are very pleased that the FDIC has determined to take this action acknowledging the progress we are making to restore the Bank to financial health," said Brian Simpson, Chief Executive Officer of Bank of Granite and its parent, FNB United Corp. (Nasdaq:FNBN) . "Our entire organization has been working hard to restore the Bank to a solid position, and we will continue to adhere to the policies, procedures and processes we put in place to reduce problem assets, improve asset quality and enhance bank operations. These are all sound principles in running a quality organization."

"Our goals since we acquired Granite and recapitalized it with $55 million in new capital have been to complete the credit clean-up, return the bank to service in its community and integrate flawlessly with our other bank subsidiary, CommunityOne Bank," said Bob Reid, President of Bank of Granite and its parent, FNB United Corp. "This development will allow us to complete these goals."

Bank of Granite and CommunityOne Bank, N.A. are subsidiaries of the Asheboro, NC-based bank holding company, FNB United Corp. Opened in 1906, Bank of Granite operates 17 branches in seven North Carolina counties – Burke, Caldwell, Catawba, Iredell, Mecklenburg, Watauga and Wilkes. Opened in 1907, CommunityOne operates 44 branches in 37 communities throughout central, southern and western North Carolina. Bank of Granite and CommunityOne are full-service banks, Equal Housing Lenders and members of the FDIC.
For more information:
Pam Cranford, 980.819.6221

http://globenewswire.com/news-release/2013/03/01/527626/10023752/en/Bank-of-Granite-Cease-and-Desist-Order-Lifted-by-FDIC.html#sthash.6h1nSBBW.dpuf

[Enterprising Investor]

CommunityOne Bank to Launch New Brand and Products (1/03/13)

ASHEBORO, N.C., Jan. 3, 2013 (GLOBE NEWSWIRE) -- CommunityOne Bank, N.A. has announced it will launch a new brand and introduce enhancements to its product offerings to better reflect the future of the company and its anticipated merger with Bank of Granite.

"As we continue to bring CommunityOne and Bank of Granite together, it's important to define and present our company as a new and well capitalized organization," commented Bob Reid, President of CommunityOne. "Our strengths are the same as they've always been. We're a bank that believes true customer service means learning about your customers' needs and goals, and offering professional advice and services to help meet those needs and goals."

The new CommunityOne brand will consist of conventional upgrades, such as a new logo and colors, but will also incorporate community wherever possible. In fact, customers and employees who give their permission will be featured in bank ads and other marketing materials.

"We're literally featuring our customers and employees as part of our new brand," stated Brian Simpson, Chief Executive Officer of CommunityOne. "It's our way of showing the outside world we identify with people as human beings, not numbers."

In conjunction with the new brand, the bank is enhancing many of its products for the first time in several years. For bank customers, changes to existing deposit accounts will take effect on Tuesday, February 19, following the Presidents' Day holiday on Monday. Deposit product changes will not affect customer account numbers, loan products or branch phone numbers or addresses.

While the bank's brand is officially changing on February 19, signs and ATMs in select markets will begin reflecting the new logo and colors in early January. Certain items, such as checks and debit cards, will be updated gradually over time or at the point of reorder.

"We think the bank's new brand will be well received," commented Reid. "We're proud to serve our customers and want them to feel equally proud about banking with CommunityOne. They're our greatest focus and the reason we're in business."

CommunityOne Bank, N.A. is a subsidiary of FNB United Corp. Opened in 1907, CommunityOne operates 44 branches in 37 communities throughout central, southern and western North Carolina, and offers a wide variety of consumer, mortgage, wealth and business banking services, including loan, deposit, cash management, and online banking services. CommunityOne Bank is an equal housing lender and a member of the FDIC.

http://www.globenewswire.com/news-release/2013/01/03/514527/10016991/en/CommunityOne-Bank-to-Launch-New-Brand-and-Products.html

[Enterprising Investor]

FNB United Corp. Added to the Russell 3000 Index, the Russell 2000 Index, the Russell Global Index and the Russell Microcap Index (6/28/12)

ASHEBORO, N.C., June 28, 2012 (GLOBE NEWSWIRE) -- FNB United Corp. (Nasdaq:FNBN) (the "Company"), the bank holding company for CommunityOne Bank, N.A. and Bank of Granite (the "Banks"), announced today that it was added to the Russell 3000® Index, the Russell 2000® Index, the Russell Global Index and the Russell Microcap® Index when Russell Investments reconstituted its comprehensive set of U.S. and global equity indexes.

Russell indices are widely used by investment managers and institutional investors for both index funds and as benchmarks for passive and active investment strategies. In the institutional marketplace, an industry leading $3.9 trillion in assets currently are benchmarked to them. The Company will hold its membership in the Indices until Russell reconstitutes them again in June 2013.

The annual reconstitution of the Russell 3000® captures the 3,000 largest U.S. stocks as of the end of May, ranking them by total market capitalization. The largest 1,000 companies in the ranking comprise the Russell 1000® and the next 2,000 companies become the Russell 2000®. The Russell 3000® also serves as the U.S. component to the Russell Global Index.

About FNB United Corp.

FNB United Corp. is the North Carolina-based bank holding company for two historic community banks, CommunityOne Bank, N.A. (MyYesBank.com) and Bank of Granite (BankOfGranite.com). Founded in 1907, CommunityOne operates 45 branches in 38 communities throughout central, southern and western North Carolina. Founded in 1906, Bank of Granite operates 18 branches in western North Carolina. Through its banking subsidiaries, FNB United offers a full range of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and online banking services.

CONTACT:
Pam Cranford
Investor Relations
Tel: [phone]

http://www.globenewswire.com/newsroom/news.html?d=260697

[Enterprising Investor]

FNBN Announces Launch of at-the-Market Equity Offering (5/22/12)

ASHEBORO, N.C., May 22, 2012 (GLOBE NEWSWIRE) -- FNB United Corp. (Nasdaq:FNBN) (the "Company"), the bank holding company for CommunityOne Bank, N.A. and Bank of Granite (the "Banks"), announced today that it has filed a prospectus supplement under which it may from time to time sell up to two million shares of its common stock pursuant to an at-the-market equity offering program. The shares will be offered through Sandler O'Neill & Partners, L.P. as sales agent. Sales, if any, would be made in transactions that are deemed to be at-the-market offerings, including sales made directly on the NASDAQ Capital Market or sales made to or through a market maker other than on an exchange or by privately negotiated transactions. The Company intends to use the proceeds from any sales for general corporate purposes of the Company or contributions to the capital of the Banks.

The Company has filed a registration statement (including a prospectus and a prospectus supplement with the Securities and Exchange Commission (the "SEC")) for the offering of the common stock described in this communication. Sales in the offering, if any, would be made pursuant to the prospectus supplement, dated May 21, 2012, to the Company's base prospectus, dated May 18, 2012, filed as part of the Company's shelf registration statement on Form S-3 (SEC File No. 333-180604). Before you invest, you should read the prospectus, the prospectus supplement relating to the at-the-market offering and other documents the Company has filed with the SEC for more complete information about it and the at-the-market offering program. You may obtain the prospectus supplement and the related base prospectus by visiting EDGAR on the SEC website at www.sec.gov, or the sales agent will arrange to send you the prospectus supplement and the related base prospectus if you request it by contacting Sandler O'Neill & Partners, L.P., 1251 Avenue of the Americas, 6th floor, New York, New York 10020, Attn: Syndicate, by emailing [e-mail] or by calling [phone].

The offering will be made in compliance with the applicable provisions of Rule 5121 of the Financial Industry Regulatory Authority, or FINRA. This rule requires that a "qualified independent underwriter" meeting certain standards participate in the preparation of the registration statement and prospectus and exercise the usual standards of due diligence with respect thereto. FBR Capital Markets & Co. has assumed the responsibilities of acting as a "qualified independent underwriter" within the meeting of FINRA Rule 5121 in connection with the offering.

This press release is for informational purposes only and is not an offer to sell or the solicitation of any offer to sell any security of the Company, nor will there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful. The offering may be made only by means of a prospectus supplement and related base prospectus.

Caution About Forward-looking Statements

Certain statements made in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that include projections, predictions, expectations, or beliefs about events or results or otherwise are not statements of historical facts, such as statements about the sale of securities and the use of proceeds of the at-the-market offering. Although the Company believes that its expectations with respect to such forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual results, performance or achievements of the Company will not differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual events or results to differ significantly from those described in the forward-looking statements include, but are not limited to those described in the cautionary language included under the headings "Risk Factors" and in other sections of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as amended, Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, those factors addressed in the Prospectus Supplement and the related base prospectus in connection with the at-the-market offering and other filings made with the SEC.

About FNB United Corp.

FNB United Corp. is the North Carolina-based bank holding company for two historic community banks, CommunityOne Bank, N.A. (MyYesBank.com) and Bank of Granite (BankOfGranite.com). Founded in 1907, CommunityOne operates 45 branches in 38 communities throughout central, southern and western North Carolina. Founded in 1906, Bank of Granite operates 18 branches in western North Carolina. Through its banking subsidiaries, FNB United offers a full range of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and online banking services.

CONTACT: Pam Cranford [phone]
[e-mail]
Tel: [phone]
800.873.1172

http://globenewswire.com/newsroom/news.html?d=256733

[Enterprising Investor]

FNBN Schedules 2011 Fourth Quarter and Year-End Investor Conference Call (3/14/12)

ASHEBORO, N.C., March 14, 2012 (GLOBE NEWSWIRE) -- FNB United Corp. (Nasdaq:FNBN) announced today that it will host a pre-recorded investor call on April 6, 2012 at 11:00 a.m. Brian Simpson, Chief Executive Officer, and Dave Nielsen, Chief Financial Officer, will discuss the company's fourth quarter and year-end financial and operating results for the period ended December 31, 2011.

A pre-recorded question and answer session will follow the formal remarks. Interested parties can submit questions for consideration at [e-mail] on or before Monday, April 2, 2012. Questions selected by FNB in advance of the call will be read and answered during the question and answer session by appropriate members of the FNB management team, including Brian Simpson, Dave Nielsen, Bob Reid, President, and Dave Lavoie, Chief Risk Officer.

Interested parties should dial in five to ten minutes prior to the scheduled start time to 1-877-317-6789. International callers should dial in to 1-412-317-6789. Canadian callers may dial in to 1-866-605-3852. To join the call, participants will be required to provide conference ID number 10011584. The webcast may be accessed at http://services.choruscall.com/links/fnbn120406.html. The webcast replay will be available until April 6, 2013. The teleconference replay will be available one hour after the end of the conference through July 9, 2012. To access the teleconference replay, dial toll free in the U.S. to 1-877-344-7529 or international callers may dial 1-412-317-0088 and Conference ID Number will be 10011584.

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:
Pam Cranford
[phone]
[e-mail]

[Penny Roger$]

~ Monday! $FNBN ~ Earnings posted, pending or coming soon! In Charts and Links Below!

~ $FNBN ~ Earnings expected on Monday *
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.








http://stockcharts.com/h-sc/ui?s=FNBN&p=D&b=3&g=0&id=p88783918276&a=237480049




http://stockcharts.com/h-sc/ui?s=FNBN&p=W&b=3&g=0&id=p54550695994



~ Google Finance: http://www.google.com/finance?q=FNBN
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=FNBN#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=FNBN+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=FNBN
Finviz: http://finviz.com/quote.ashx?t=FNBN
~ BusyStock: http://busystock.com/i.php?s=FNBN&v=2


<<<<<< http://www.earningswhispers.com/stocks.asp?symbol=FNBN >>>>>>



http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916

*If the earnings date is in error please ignore error. I do my best.

[56Chevy]

Roger that. At today's pps of $11.98 it would be a sizable 25% discount and a great entry price for investors if they were deciding to get in.

Looks like someone agreed and is now riding that 25% discounted entry price to some handsome gains.

[56Chevy]

FNBN is currently trading at a discount to the $16 per share paid by the new investors.

Roger that. At today's pps of $11.98 it would be a sizable 25% discount and a great entry price for investors if they were deciding to get in.

I do NOT see FNBN on the troubled bank list we use. I do see Granite at #178 however this list was put out just prior to merger complettion. They won't be on the next updated list.

http://bankimplode.com/list/troubledbanks.htm

Carlyle & Oak Hill will have a combined ownership of 49.8%. IRS Section 382 (Change of control) requires a new owner to own < 50% of the stock to take advantage of the NOL's. Considering FNBN met all regulatory requirements...completed the merger with GRAN...enlarged it's regional footprint...lowered operating costs...has the full use of NOL's going forward, what's not to like!

Now if the fed would only raise interest rates banks like FNBN will do even better.

This is not an endorsement to buy but if I were I wouldn't be afraid of this bank.

[Enterprising Investor]

Recommendation: stick to recapitalized banks.

I have been in banking since July 1987. I watched all but one large Texas bank (Frost Bank) fail and be taken over by out of state players in the late 1980's. Looking for a turnarounds without capital infusions can be very risky. Few banks survive without massive dilution to legacy shareholders.

Sometimes even recapitizations do not work.

I invested in First City Bankcorp after it received a $500 million capital infusion from an investor group led by Robert Abboud, the former CEO of First Chicago, on April 20, 1988.

Actually, I had a choice: First City with assistance or Frost without FDIC help. I made the wrong decision. First City failed on October 30,1992.

http://www.fdic.gov/bank/historical/managing/history2-05.pdf

FNBN is currently trading at a discount to the $16 per share paid by the new investors.

[goarmy123]

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.

[Enterprising Investor]

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

[goarmy123]

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

[Enterprising Investor]

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

[Enterprising Investor]

Carlyle and Oak Hill Capital each hold approximately 23%.

[Enterprising Investor]

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

[Enterprising Investor]

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

[Enterprising Investor]

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 [phone]
[e-mail]

http://sec.gov/Archives/edgar/data/764811/000117184311003199/newsrelease.htm

[$King]

FNBN @ .27

[mlkrborn]

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

[mlkrborn]

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.

[Enterprising Investor]

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

[mlkrborn]

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. "

[Enterprising Investor]

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

[ownprivateidaho]

Merger notice...deal to close by 9/30/11...LINK

http://seekingalpha.com/article/281494-merger-arbitrage-mondays-july-25-2011?source=marketwatch

[buyorsell40]

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???

[56Chevy]

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.

[ownprivateidaho]

FNBN will be dilluted.....prior.

[buyorsell40]

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????