Bank of Granite Corporation (GRAN)

[56Chevy]

FNBN & GRAN merger still on track as of 6/22/2011

Upon consummation of the Merger, each outstanding share of the Company’s common stock, par value $1.00 per share, other than those held by the Company, FNB, Merger Sub or any of their respective wholly-owned subsidiaries that are not owned by such parties, in a fiduciary capacity or as a result of debts previously contracted, will be converted into the right to receive 3.375 shares of FNB’s common stock, par value $2.50 per share.

One of the conditions to the closing of the Merger is the settlement of indebtedness of CommunityONE Bank, National Association, a wholly-owned subsidiary of FNB (“CommunityONE”), outstanding and held by SunTrust Bank for cash at the discounted values specified in the Merger Agreement (the “SunTrust Settlement”).

On the terms and subject to the conditions set forth in a letter agreement, dated May 31, 2011, between CommunityONE and SunTrust Bank, SunTrust Bank has preliminarily agreed to settle CommunityONE’s indebtedness for cash in amount equal to 35% of the principal thereof, plus 100% of the unpaid and accrued interest on the debt as of the closing date of the Merger.

On June 16, 2011, FNB, Merger Sub and the Company entered into Amendment No. 1 to the Merger Agreement (the “Amendment”) to increase the discounted settlement amount of the SunTrust indebtedness specified in the Merger Agreement from 25% to 35% of the principal thereof, plus 100% of the unpaid and accrued interest on the debt as of the closing date of the Merger.

http://ih.advfn.com/p.php?pid=nmona&article=48107428