Exhibit 99.1

[FNB LOGO]                                        [UNITED FINANCIAL, INC. LOGO]

FNB CORP.

For Immediate Release
May 10, 2005, 8:00 a.m.

                   FNB Corp. to Acquire United Financial, Inc.

         Asheboro, NC. - Michael C. Miller, Chairman, President and Chief
Executive Officer of FNB Corp. ("FNB") [NASDAQ: FNBN] and William M. Griffith
Jr., President and Chief Executive Officer of United Financial, Inc. ("United")
[Bulletin Board: UTDF.OB] today announced the signing of a definitive agreement
for the merger of United into FNB. The agreement provides that FNB will issue a
combination of common stock and cash for the outstanding shares of United common
stock. United shareholders will be given the option of receiving .6828 shares of
FNB common stock, $14.25 in cash, or a mixture of stock and cash for each share
of United common stock. Based on a value per share of $14.25, the transaction
price represents 227% of United's book value as of March 31, 2005 and the total
transaction value is approximately $24.6 million.

         Through the merger, United's bank subsidiary, Alamance Bank, which
operates three community offices in Graham, Burlington and Hillsborough, North
Carolina (operating as Hillsborough Bank), will join the FNB franchise family
which includes First National Bank and Trust Company and Dover Mortgage Company.
The merger of the two banks will expand First National to a total of 24
community YES! Bank offices in 10 contiguous counties serving central North
Carolina.

         "Expansion along the I-40/I-85 corridor between Greensboro and
Raleigh-Durham has been a strategic priority for FNB Corp.," commented Miller.
"Having just opened our first of two new YES! Banks in Greensboro, Alamance and
Orange Counties are a natural extension of our growing franchise. We look
forward to building on United's success in this market through our YES YOU
CAN(R), YES WE CAN(R) brand promise that is ideally suited for United's
customers and communities."



         Miller continued, "We are particularly excited to welcome the United
team of Alamance Bank and Hillsborough Bank employees into the FNB family. We
believe that combining our franchises will enable us to take advantage of
significant growth opportunities in a great market in the heart of North
Carolina."

         "We are extremely pleased to partner with FNB Corp. and First
National," added Griffith. "FNB has long been known as one of the finest
community banks in North Carolina and the country, and we share a common vision
with regard to community banking and customer service. This transaction provides
our shareholders with significant and immediate value, as well as the
opportunity to participate as shareholders in a larger institution that has a
track record of success and return to its shareholders. The merger improves our
ability to serve our customers, expands career opportunities for our employees
and enhances the value we provide to the communities we serve."

         United shareholders will be permitted to elect FNB common stock or
cash, or a combination of each, subject to FNB's ability to limit the overall
stock consideration to 65% of total consideration. The stock portion of the
consideration to United shareholders is intended to qualify as a tax-free
transaction. As part of the agreement, two members of United's Board of
Directors will be added to the Board of FNB.

         The transaction is subject to certain conditions, including the
approval of United shareholders and applicable regulatory authorities. The
merger is anticipated to close early in the fourth quarter of 2005.

         FNB is the central North Carolina-based bank holding company for First
National Bank and Trust Company and Dover Mortgage Company. Assets as of March
31, 2005 were $896 Million. First National (www.MyYesBank.com) operates 21
community YES! Banks in Archdale, Asheboro, Biscoe, China Grove, Ellerbe,
Greensboro, Kannapolis, Laurinburg, Pinehurst, Ramseur, Randleman, Rockingham,
Salisbury, Seagrove, Siler City, Southern Pines and Trinity. Dover Mortgage
Company (www.dovermortgage.com) operates mortgage production offices in
Asheville, Carolina Beach, Charlotte, Goldsboro, Greenville, Lake Norman,
Leland, Raleigh and Wilmington. Through its subsidiaries, FNB offers a complete
line of consumer, mortgage and business banking services, including loan,
deposit, cash management, wealth management and internet banking services. The
Federal Deposit Insurance Corporation insures First National's deposits up to
applicable limits.



         United is the parent company for Alamance Bank, which began operations
in September 1998. Alamance Bank (www.alamancebank.com) had total assets of
$150.8 million as of March 31, 2005. It operates three full service banking
offices in central North Carolina, two in Alamance County (Graham and
Burlington) and the only independent bank office in Orange County
(Hillsborough).

         FNB stock is traded on the NASDAQ National Market under the symbol
FNBN. Market makers are Scott & Stringfellow, Keefe, Bruyette & Woods, Goldman
Sachs, Fig Partners, Ferris Baker Watts, Knight Securities, Ryan Beck & Company,
Sandler O'Neill & Partners and Stern Agee and Leach.

         This news release contains forward-looking statements, including
estimates of future operating results and other forward-looking financial
information for FNB and United. These estimates constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 and involve various risks and uncertainties. Actual results may differ
materially due to such factors as: (1) expected cost savings from the merger not
materializing within the expected time frame; (2) revenues following the merger
not meeting expectations; (3) competitive pressures among financial institutions
increasing significantly; (4) costs or difficulties related to the integration
of the businesses of FNB and United being greater than anticipated; (5) general
economic conditions being less favorable than anticipated; and (6) legislation
or regulatory changes adversely affecting the business in which the combined
company will be engaged. FNB does not assume any obligation to update these
forward-looking statements or to update the reasons why actual results could
differ from those projected in the forward-looking statements.

         FNB will file a registration statement with the Securities and Exchange
Commission relating to the merger. The registration statement will include a
proxy statement/prospectus, which will serve as the proxy statement of United
relating to the solicitation of proxies for use at the meeting of United's
shareholders to approve the merger and the prospectus of FNB relating to the
offer and distribution of FNB common stock in the merger. Investors are urged to
read the proxy statement/prospectus and any other relevant documents to be filed
with the Securities and Exchange Commission because they contain important
information. Investors will be able to obtain these documents free of charge at
the Commission's web site (www.sec.gov). In addition, documents filed with the
Commission by FNB will be available free of charge from the Treasurer and
Secretary, FNB Corp., 101 Sunset Avenue, Asheboro, North Carolina 27203.



         The directors and executive officers of United may be soliciting
proxies in favor of the merger from the shareholders of United. Information
about these directors and executive officers is contained in the most recent
proxy statement issued by United, copies of which may be obtained from the
Secretary, United Financial, Inc., 1128 South Main Street, Graham, North
Carolina 27253. Additional information regarding the interests of these persons
may be obtained by reading the proxy statement/prospectus regarding the proposed
transaction when it becomes available.



Contact information:
         FNB Corp.                                    United Financial, Inc.
         --------                                    ----------------------
         Michael C. Miller                            William M. Griffith, Jr.
         R. Larry Campbell                            (336) 226-1223
         (336)626.8300