FNB United (FNBN) in Asheboro, N.C., is planning to sell up to two million shares of its common stock in a move that could net it close to $60 million of fresh capital.
The $2.4 billion-asset company said in a Securities and Exchange Commission filing Monday that it would use the proceeds from the sale for general corporate purposes that could include beefing up the capital levels at its two subsidiary banks. It also filed a shelf registration last week that said it could raise additional capital through sales of warrants or rights and that proceeds could be used to repay debt or for possible acquisitions.
FNB United is the parent of CommunityOne Bank in Asheboro and Bank of Granite in Granite Falls, N.C. Both banks have struggled mightily with problem loans in recent years but are on more solid footing since FNB United was recapitalized with a $310 million investment late last year from the Carlyle Group (CG) and Oak Hill Capital Partners. FNB United used a portion of the proceeds to acquire Bank of Granite.
The company lost $10.8 million in the quarter that ended March 31, compared to a loss of $30.6 million in the prior quarter.
In connection with last year's recapitalization, the company in November completed a one-for-100 reverse stock split, at a time when its shares were trading at just around 20 cents.
FNB United's shares were trading at $29.05 Monday morning, down slightly from Friday's closing price but still up 47% since Tuesday, when the company announced its shelf registration.