Tuesday, May 22, 2012

FNB United could sell up to 2 million shares

Asheboro-based FNB United Corp., which operates its banks under the name CommunityOne Bank, announced Tuesday that it is prepared up to sell up to 2 million common shares -- about $56 million at yesterday's close.

Sales, if there are any, will be "at-the-market" offerings, the bank said, meaning they will be sold incrementally at market prices, rather than in a large, underwritten sale.

Shares plummeted on the news, down nearly 30 percent as of 9:45 a.m.

The bank said it will use the money to build capital and for "general corporate purposes."

FNB United merged with the Bank of Granite last year, part of a $310 million recapitalization for the struggling banks. The bank also executed a 100-to-1 reverse stock split after its stock closed at 23 cents.