The $2 billion-asset company disclosed in a regulatory filing Monday that it will sell about 1.1 million shares of common stock for the Treasury. The agency has held the stock since October 2011.
CommunityOne, which will not receive any proceeds from the sale, did not disclose a price range for selling the shares.
The company has begun to recover from losses incurred during the housing crisis. The company last month reported its third straight quarterly profit.