FNB United Corp.'s private-equity led buyout of a rival bank cleared another key hurdle after FNB's shareholders approved the acquisition of Bank of Granite Corp.
The Asheboro, N.C., company's shareholders on Wednesday also approved a $310 million recapitalization plan led by Carlyle Group and Oak Hill Capital Partners, according to a press release. Bank of Granite's shareholders approved the Granite Falls, N.C., company's sale a day earlier.
The combined company would have $2.8 billion in assets, $2.4 billion in deposits and 63 branches.
Carlyle and Oak Hill have each committed $79 million to recapitalize FNB.
FNB also said Wednesday that the U.S. District Court for the Western District of North Carolina on Oct. 14 approved a deferred prosecution agreement filed by CommunityONE Bank, the U.S. Attorney's Office and the Department of Justice to settle certain allegations surrounding the bank's anti-money laundering program. That approval satisfied a closing condition to the recapitalization and the acquisition of Bank of Granite.
Several hurdles remain, including the completion of investment agreements with affiliates of Carlyle and Oak Hill and a plan for the Treasury Department to convert shares of FNB preferred stock tied to the Troubled Asset Relief Program into common stock.
