Presentation Materials

Forward-Looking Statements

FNB United Corp. has made forward-looking statements in the

accompanying presentation materials that are subject to risks and

uncertainties. These statements are based on the beliefs and

assumptions of the management of FNB United Corp., and on the

information available to management at the time the presentation

materials were prepared. These forward-looking statements involve

certain risks and uncertainties, including a variety of factors that may

cause FNB United Corp’s actual results to differ materially from the

anticipated results or other expectations expressed in such forward-

looking statements. Readers are cautioned not to place undue reliance

on these forward-looking statements and are advised to carefully

review the risk factors described in other documents that FNB United

Corp. files from time to time with the Securities and Exchange

Commission, including the Quarterly Reports on Form 10-Q, the Annual

Report on Form 10-K, and other required filings.

About FNB UNITED

FNBN

NASDAQ Symbol:

1907, in Asheboro, North Carolina

Founded:

43 Banking Offices

35 Communities

17 Counties

Locations:

$1.45 Billion

Deposits:

$1.36 Billion

Loans:

$1.86 Billion

Assets:

Largest

Financial

Service

Company

HQ’d

in North Carolina

FNB United Acquisitions

$1,091

TOTAL

OTHER

$25MM

Dover

Mortgage

Company

April 2003

Offices

Assets

COMMERCIAL BANKS

$680 MM

$151 MM

$134 MM

$126 MM

Integrity

Financial

Inc.

(Catawba Valley/First

Gaston/Northwestern Banks)

United

Financial

Inc.

(Alamance/Hillsborough

Banks)

Rowan

Bancorp.

(Rowan Savings Bank)

Carolina

Fincorp.

Inc

(Richmond Savings Bank)

May 2006

November 2005

August 2002

April 2000

Growth Strategy

•

Increase Penetration of Current Markets

Attractive New Markets & Customer Base

•

De Novo Offices

Two Offices opened in 2006 (Greensboro -

Salisbury)

Two Offices underway to open in 2008

(Cornelius

Greensboro)

•

Integrated Wealth Management/Mortgage

Services

Market Growth Potential

Rank

Institution

Branch

Count

Total

Deposits in

Market

($000)

Total

(%) of

Market

Counties

with

#1 Market

Wachovia

5,585,767

21.12%

BB&T

4,374,447

16.54%

Sun Trust

2,450,667

9.26%

Bank of America

2,218,636

8.39%

FNB United Corp. (NC)

1,406,420

5.32%

Royal Bank of Canada

1,086,583

4.11%

First Citizens

1,076,597

4.07%

First Bancorp (NC)

705,996

2.67%

Yadkin Valley Bank

592,887

2.24%

Capital Bank Corp. (NC)

530,196

2.00%

BancIntelligence - BancAnalyst Market

FDIC Deposit Data as of June 30, 2007

Randolph *

Alamance, Guilford, Iredell, Scotland,

Wilkes

Catawba, Gaston, Moore, Richmond,

Watauga

Orange, Chatham

*Top 5 in 8 of 17 Counties

YES!

Branding

CommunityONE

is the YES! Bank. It is plainly stated in our

Yes you can

—Yes we can

trademarks. It is reflected in the

design of our logo and corporate mascot, Jack. And it is

repeated in our customer service programs, company spirit

campaigns and marketing messages. But more than a motto,

YES!

is our promise to exceed your expectations through better

banking and outstanding service. It’s part of our culture. It

empowers our employees and describes who we are and what

we do. Yes Customers Can. Yes Communities Can. Yes

Schools Can. Yes Your Future Can. Because We Can.

Participative and Positive

Experienced Management Team

Journalism,

SVP, Chief Human Res.

Deborah B. Auman

Planters NB, Bank of

Candor

SVP, Chief Credit

Officer

William S. Bruton

Camco, FCNB Corp.

Union Planters

KPMG

EVP, Chief Financial

Officer

Mark A. Severson

Wachovia

EVP, Chief Banking

Officer

R. Mark Hensley

President, Richmond

Savings; Raleigh Fed,

Newport News Savgs

EVP,

Chief Mktg

Projects & Subsidiary

R. Larry Campbell

Attorney, Corp. and

Private Practice

Chrm, Pres. & CEO

Michael C. Miller

Experience

Age

Years in

Banking

Years at

FNB

Title

Name

Experienced Management Team

Mainstreet, FCTR,

Southern National Bk

Treasurer

Bob D. Doby, Jr.

Western Savings, Zions

Bancorporation

SVP, Chief Risk Officer

Dean S. Tingey

Fidelity Federal B & T,

Resource Management

Assoc

SVP, Chief Information

Officer

David E. Miller

Wachovia

SVP, Chief Lending

Officer

Eddie A. Causey

Bank of America,

WesBanco

SVP, Chief Wealth Mgt

Timothy A. Britt

Experience

Age

Years in

Banking

Years at

FNB

Title

Name

Loan Portfolio Mix

16.9%

6.8%

6.4%

21.9%

11.1%

16.2%

20.7%

Commercial/Industrial

Commercial RE-Income

Commercial RE-Owner Occupied

RE Construction & Development

Residential Real Estate

Home Equity Line

Consumer/Other

Approximately 75.0% secured by real estate

Variable rate

loans

account

for

approximately

63.7%

the

total

portfolio

Loan Portfolio

June 30, 2007

0.33%

102.99%

1.14%

1.10%

2003

0.47%

139.53%

1.12%

0.80%

2004

0.22%

164.49%

1.25%

0.76%

2005

0.16%

149.27%

1.28%

0.86%**

2006

0.175%

(annualized)

Net Charge Offs

Average Loans

135.79%*

(141.65%)

Loan Loss Reserve

Nonperforming Loans

1.16%*

(1.21%)

Loan Loss Reserve

Total Loans Held for Investment

0.85%

Nonperforming Loans

Total Loans Held for Investment

Q2-2007

Asset Quality

* Omits reserve for unfunded commitments

** 1.15% as of 9/30/06

(See Appendix)

Core Strategies

•

Improve Asset Quality

•

Complete Integration of Acquisitions –

Resume Pre-

Merger Financial Performance

•

Grow Fee Income –

Wealth Management and

Mortgage Banking

•

Franchise Growth

Increase Penetration of Current Markets

DeNovo

Offices

Core Deposits Focus

•

“Yes”

Branding

–

Yes

You

Can

Yes

Can

Improving Financial Performance

Sales Initativies:

•

New CEO Dover Mortgage Company

•

New Depository Products

Increase Deposits

Increase Fee Income

•

Enhance Corporate Cash Management

Increase Merchant Service Relationship

Promote Remote Capture

•

Sales Coaches

Improving Financial Performance

Integration and Cost Savings Initiatives:

•

Consolidated Item Processing

•

Completed Teller Platform Conversion

Increase Fee Income

Reduce Overhead

Better Customer Service

Automate Regulatory Reporting

Improving Financial Performance

Integration and Cost Savings Initiatives:

•

Sell Credit Card Portfolio

Net, One-Time Gain

Improve Product Offering, Increase Fee Income, Reduce Risk

Reduce Overhead (five providers)

•

New Courier Contracts

•

Consolidate ATM Switch and Debit Card Processing

Increase Fee Income

Reduce Expenses (three providers)

Improving Financial Performance

Integration and Cost Savings Initiatives:

•

Complete Telecom Audit

•

Reorganize Dover Mortgage from Holding Co.

to Bank Subsidiary

•

Promote E-Statements

•

Refinance of Acquired TPS in 2008

Goals over the next three years include:

•Annual earnings per share growth: 7.5 -

10%

•Annual loan growth: 10 -

12%

•Non-interest income: 25% of revenues

•Efficiency ratio: 60-63%

Position ourselves as a

Preeminent Community Bank in

Southeastern U. S.

Improving Financial Performance

Investor Opportunity

Dividend Yield (%)

3.79

FNB United

Corp.

2.50

SNL Banks

Peer Group*

Price / LTM EPS (X)

13.8

FNB United

Corp.

15.00

SNL Banks

Peer Group*

0.58

NC Banks**

15.82

NC Banks**

*SNL Data –

Banks between $1 -

$5 billion as of 7/20/07

**SNL Data –

NC State Public Bank Median as of 7/20/07

Investor Opportunity

Price / Book (%)

Price / Tangible Book (%)

*SNL Data –

Banks between $1 -

$5 billion as of 7/20/07

**SNL Data –

NC State Public Bank Median as of 7/20/07

84.6

FNB United

Corp.

173.2

SNL Banks

Peer Group*

189.2

FNB United

Corp.

229.9

SNL Banks

Peer Group*

139.3

NC Banks**

159.8

NC Banks**

Investor Opportunity

Dividend Yield (%)

3.79

FNB United

Corp.

2.50

SNL Banks

Peer Group*

Price / LTM EPS (X)

13.8

FNB United

Corp.

15.00

SNL Banks

Peer Group*

0.58

NC Banks**

15.82

NC Banks**

*SNL Data –

Banks between $1 -

$5 billion as of 7/20/07

**SNL Data –

NC State Public Bank Median as of 7/20/07

Contact Information

Michael C. Miller

Chairman and President

Mike.Miller@MyYesBank.com

FNB United Corp.

CommunityONE

Bank, N.A.

150 S. Fayetteville Street

PO Box 1328

Asheboro, NC 27204

336.626.8300

Yes You Can

Yes We Can