Thursday, November 7, 2013

Fed ends enforcement action against CommunityOne

The Federal Reserve has ended its 2010 enforcement action against Charlotte-based CommunityOne Bancorp, an emergency measure dating back to the aftermath of the financial crisis.

The decision is another milestone in the bank's recovery from the brink of collapse since being propped up in a $310 million capitalization and forced merger with Bank of Granite two years ago.

The Fed announced the enforcement action against what was then known as FNB United Corp. in October 2010, as the bank's capital levels plummeted. IT required the bank to stop paying dividends and come up with a plan to boost its financial soundness.

Ultimately, the bank accepted a capital infusion from private equity investors, brought in former First Union executives to lead the bank and merged with the Granite Falls-based Bank of Granite in 2011.

Both banking subsidiaries, CommunityOne Bank and Bank of Granite, were released from similar consent orders earlier this year.

The company changed its name to CommunityOne and moved its headquarters from Asheboro to Charlotte over the summer.

The bank returned to profitability in the third quarter.

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