Presentation Materials

Forward-Looking Statements

FNB

United

Corp.

has

made

forward-looking

statements

the

accompanying

presentation

materials

that

are

subject

risks

and

uncertainties.

These

statements

are

based

the

beliefs

and

assumptions

the

management

FNB

United

Corp.,

and

the

information

available

management

the

time

the

presentation

materials

were

prepared.

These

forward-looking

statements

involve

certain

risks

and

uncertainties,

including

variety

factors

that

may

cause

FNB

United

Corp’s

actual

results

differ

materially

from

the

anticipated

results

other

expectations

expressed

such

forward-

looking

statements.

Readers

are

cautioned

not

place

undue

reliance

these

forward-looking

statements

and

are

advised

carefully

review

the

risk

factors

described

other

documents

that

FNB

United

Corp.

files

from

time

with

the

Securities

and

Exchange

Commission,

including

the

Quarterly

Reports

Form

10-Q,

the

Annual

Report

Form

10-K,

and

other

required

filings.

FNB UNITED –

Presentation Contents

•

Why

FNB

UNITED

Who We Are

Value Metrics & Integration Accomplishments

Management & Culture

•

Financial Highlights

•

Business

Strategy

–

Earnings

and

Growth

Opportunities

•

Questions

Why FNB

UNITED

Value

1907, as First National Bank of

Asheboro

Founded:

91,000 +

43 Banking Offices

35 Communities in 17 N.C. Counties

Customers:

Locations:

$1.44 Billion

Deposits:

$1.45 Billion

Loans:

$1.91 Billion

Assets:

Largest Financial Service Company

HQ’d in North Carolina

Value -

Investor Opportunity

Dividend Yield (%)

5.00

FNB United

Corp.

2.85

SNL Banks

Peer Group*

Price / LTM EPS (X)

11.0

FNB United

Corp.

14.7

SNL Banks

Peer Group*

0.61

NC Banks**

14.36

NC Banks**

*SNL Data –

Banks between $1 -

$5 billion as of 02/01/08

**SNL Data –

NC State Public Bank Median as of 02/01/08

Price / Book (%)

Price / Tangible Book (%)

*SNL Data –

Banks between $1 -

$5 billion as of 02/01/08

**SNL Data –

NC State Public Bank Median as of 02/01/08

63.4

FNB United

Corp.

154.8

SNL Banks

Peer Group*

137.8

FNB United

Corp.

210.0

SNL Banks

Peer Group*

117.6

NC Banks**

132.3

NC Banks**

Value -

Investor Opportunity

FNB

UNITED

Acquisitions

$1,091 MM

TOTAL

OTHER

$25MM

Dover Mortgage Company

April 2003

Offices

Assets

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

Integration Accomplishments

•

Merge 3 Data Systems

•

Merge 5 Credit Card Providers

•

Merge 3 Debit Card/ATM Providers

•

Merge 4 Bank Brands

•

New Teller & Mortgage Production Systems

•

New Financial, I.T. & Risk Management Teams

•

Closed One Ops Center –

Implemented Electronic

Image Exchange

•

See Appendix II for Quarter by Quarter

Progress and

Accomplishment

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

FNB Southeast,

Southern Nat’l Bank,

Independence Bank

SVP, Chief

Accounting Officer

K. Dwight Willoughby

SunTrust, Federal

Home Loan Bank-

Atlanta, Fulton Federal

SVP, Treasurer

W. Carey Chapman

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

Management

Timothy A. Britt

Experience

Age

Years in

Banking

Years at

FNB

Title

Name

Experienced Management Team

Experienced Management Team

Fieldstone Mortgage,

First Franklin

Financial, Southern

Pacific Funding

Dover Mortgage

President

Harvey Goldberg

AmSouth, First Union

Regional President

William R. Wood, III

Wachovia

Regional President

J. Greg Spainhour

Wachovia

Regional President

J. Scott Kittrell

First Union/Wachovia

Regional President

Don S. Harrison

Experience

Age

Years in

Banking

Years at

FNB

Title

Name

Performance and Team Oriented

•

Maximize Long-term Value Of Organization

•

Team Orientation -

Universal Participation

•

Coaching And Communication

•

Educational Program

Performance Compensation

for STAKEHOLDERS™

YES!

Branding

CommunityONE

the

YES!

Bank.

plainly

stated

our

Yes

you

can

—Yes

can

trademarks.

reflected

the

design

our

logo

and

corporate

mascot,

Jack.

And

repeated

our

customer

service

programs,

company

spirit

campaigns

and

marketing

messages.

But

than

motto,

YES!

our

promise

exceed

your

expectations

through

better

banking

and

outstanding

service.

It’s

part

our

culture.

empowers

our

employees

and

describes

who

are

and

what

do.

Yes

Customers

Can.

Yes

Communities

Can.

Yes

Schools

Can.

Yes

Your

Future

Can.

Because

Can.

Participative and Positive

Loan Portfolio Mix

Home Equity Lines

of Credit

Consumer/

Other

Commercial/

Industrial

10%

Commercial

RE-Owner

Occupied

22%

Commercial

RE-Income

13%

RE Construction &

Development

26%

1-4 Residential

1st Mortgage

16%

Loan Portfolio

December 31, 2007

Approximately 85% secured by real estate

Variable rate loans account for approximately 59% of the total portfolio

0.33%

1.14%*

0.91%

1.10%

2003

0.47%

1.12%*

0.68%

0.80%

2004

0.22%

1.25%*

0.64%

0.76%

2005

0.16%

1.22%

0.82%

0.85%

2006

0.27%

Net Charge Offs

Average Loans

1.20%

Loan Loss Reserve

Total Loans Held for

Investment

1.13%

NPA’s/Total Assets

1.29%

Nonperforming Loans

Total Loans Held for

Investment

2007

Asset Quality

* Includes reserve for unfunded commitments

(See Appendix)

Core Strategies

•

Manage/Improve Asset Quality

•

Restore Historical Financial Performance

Grow Fee Income –

Wealth Management,

Mortgage

Banking

Expense Control –

Staffing + Electronic

Transactions

•

Profitable Franchise Growth

Increase Penetration of Current Markets

DeNovo Offices

Improving Financial Performance

Sales Initiatives –

Minimize Funding Gap

•

Core Deposit Focus

New CheckingONE Deposit (NOW) Account

Increase Fee Income –

Trust & Mortgage

Electronic Banking Opportunities

•

Enhance Corporate Cash Management

Increase Merchant Service Relationship

Promote Remote Capture

Improving Financial Performance

Integration and Cost Savings Initiatives:

•

Sold Credit Card Portfolio

Net, One-Time Gain in 2007

Improve Product Offering, Increase Fee Income, Reduce Risk

Reduce Overhead (five providers), beginning 2008

•

Consolidate ATM Switch and Debit Card Processing

Increase Fee Income in 2008

Reduce Expenses (three providers)

Growth Strategy

•

Increase Penetration of Current Markets

Attractive New Markets & Customer Base

•

De Novo Offices

Two Offices to open in 2008 (Greensboro-

Cornelius)

•

Integrated Wealth Management/Mortgage

Services in CommunityONE Bank

•

Increased synergy with Dover Mortgage

Market Growth Potential

*Source: SNL Financial

*Top 5 in 8 of 17 Counties

As of June 30, 2007

Rank

Institution

Branch

Count

Total

Deposits

in Market

($000)

Total (%)

of Market

Wachovia

5,770,318

21.27%

BB&T

4,633,702

17.08%

Sun Trust

2,285,674

8.43%

Bank of America

2,251,509

8.30%

FNB United Corp. (NC)

1,448,532

5.34%

Royal Bank of Canada

1,189,067

4.38%

First Citizens

1,023,047

3.77%

First Bancorp (NC)

727,601

2.68%

Yadkin Valley Bank

651,403

2.40%

High Point Bank

595,103

2.19%

Counties with #1

Market Share

Randolph*

Alamance, Guilford, Iredell, Scotland, Wilkes

Catawba, Gaston, Moore, Richmond, Watauga

Orange, Chatham

$51,658

$52,663

$54,979

$49,483

$53,182

$49,596

$48,368

Median

Household

Income

9.19%

14.47%

5.82%

2.73%

13.64%

5.54%

6.90%

Projected

Population

Change

(2007-2012)

16.34%

16. 39%

17.61%

15.33%

16.00%

13.56%

15.74%

Projected

HH Income

Change

(2007-2012)

458,085

$49,194

Third office

fall 2008

GUILFORD

59,765

$19,553

CHATHAM

155,050

$179,914

CATAWBA

84,923

$40,285

MOORE

149,877

$59,622

IREDELL

198,673

$175,801

GASTON

144,506

$55,314

ALAMANCE

Total

Population

2007

Actual

FNB United

Deposits

No. of

FNB

United

Offices

County

*Source: SNL Financial

Market Growth Potential

Contiguous Counties / Future Markets Under Consideration

$64,184

$65,741

$49,819

$58,493

$45,881

$46,080

$54,157

Median

Household

Income

31.78%

15.27%

9.63%

13.88%

2.59%

4.95%

2.94%

Projected

Population

Change

(2007-2012)

19.01%

19.52%

11.84%

15.31%

13.89%

13.15%

17.90%

Projected

HH Income

Change

(2007-2012)

159,612

CABARRUS

73,688

LINCOLN

825,127

Office scheduled

for late 2008

MECKLEN-

BURG

178,366

UNION

124,599

$34,451

ORANGE

136,558

$108,497

ROWAN

140,578

$461,064

RANDOLPH

Total

Population

2007

Actual

FNB

United

Deposits

No. of FNB

United

Offices

County

*Source: SNL Financial

Market Growth Potential

Goals over the next three years include:

•Annual earnings per share growth: 7.5 -

10%

•Annual loan growth: 8-10 %

•Non-interest income: 25%+ of revenues

•Efficiency ratio: 60-63%

Position ourselves as a

Preeminent Community Bank in

Southeastern U. S.

Improving Financial Performance

Contact Information

Michael C. Miller

Chairman, President & CEO

Mike.Miller@MyYesBank.com

Mark A. Severson

Chief Financial Officer

Mark.Severson@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

Appendix I

Historical Asset Quality Measurements

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

180.00%

Nonperforming Loans / Total Loans HFI

1.10%

0.80%

0.76%

0.85%

0.96%

0.86%

1.29%

Reserve for Loan Losses / Total Loans HFI

1.14%

1.12%

1.25%

1.22%

1.20%

1.16%

1.17%

1.20%

Net Charge Offs / Average Loans

0.330%

0.470%

0.220%

0.160%

0.211%

0.160%

0.220%

0.270%

OREO & Repossessed Assets / Total Assets

0.047%

0.073%

0.105%

0.198%

0.167%

0.179%

0.266%

0.159%

Reserve for Loan Losses / NPL's

102.99%

139.53%

164.49%

143.17%

124.09%

135.43%

135.46%

92.90%

2003

2004

2005

2006

Q1-2007

unaudtd

Q2-2007

unaudtd

Q3-3007

unaudtd

Q4-2007

unaudtd

New Stakeholder Orientation meetings in Western Region and Eastern Region

new employees

Testing begun on Remote Capture

Yespy’s

Bankwide

Meeting/Introduced WIN philosophy to entire staff

Commenced e-statement campaign internally and externally

(over 4000 accounts currently)

Created a new past due report to allow individual bankers a quicker and easier

way to identify their consumer past dues

Completed HMDA data review & submission of data to Fed; 5 separate data

bases -

split & merged into 3 data bases (One for each of the 3 bank charters in

effect in 2006)

Completed integration of Integrity personnel into FNB

United 401(k) plan, and updated and improved plan

Appendix II -2007 Q-1 Accomplishments

Vertex (teller system) conversion

Conducted ATM / Debit solution study

Completed installation of 18 new ATMs

Brand Unification –

joined First National, Catawba Valley,

First Gaston and Northwestern flags under

“CommunityONE”

banner

Board approval for new community offices –

Greensboro Hilltop & Cornelius

Remote Capture of business accounts implemented

Begin telephone (communications lines and plans) improvements and cost

reductions

New Mortgage origination system implemented –

also with Dover Mortgage

Appendix II -2007 Q-2 Accomplishments

Completed rollout of 3rd Party partner for Merchant

Credit Card Services

Modified consumer loan pricing to make consumer loan pricing more

risk based pricing

Implemented automated CTR filing

Bank wide HMDA training

Implemented additional BSA/AML customer due diligence on business

deposit accounts

Signed with new Insurance Tracking Company for Flood and Hazard

Insurance

Successfully

exchanged

89%

unexchanged

stock

certificates

held

United Financial, Alamance Bank and Integrity Financial shareholders

(during Q1 and Q2).

Appendix II -2007 Q-2 Accomplishments

Completed Sale of five (5) Credit Card Portfolios

Entered into a new ATM/Debit Card processing contract

Celebrated 100 year Anniversary-kicked off “second”

100 years

Installed and implemented eight (8) Cash dispensers for tellers–

FNB legacy branches, 4 Integrity branches

Rollout of new interest checking product –

CheckingOne

Ground Breaking held for Greensboro Hilltop community office

Appendix II -2007 Q-3 Accomplishments

Modified HELOC product to include a fixed rate option and a special

“teaser”

introductory rate

Participated in nationwide Pandemic Exercise

Consolidated the outsourced audit of Information Systems,

annual intrusion test, and SOX technical testing from three

vendors to one vendor

From 10/1/06 through 9/30/07, successfully managed 20 separate

business contingency events ranging in duration from 1 hour to

approximately 1 week

Developed new Cash Management Department housed at

Northgate Ops Center

Appendix II -2007 Q-3 Accomplishments

Signed new courier contract reducing the bank cost

Changed medical insurance to new provider, negotiating a

17 month contract with no additional cost to the bank for

employee coverage and no additional cost on basic plan to

employees for dependent coverage

Reorganized Dover Mortgage as subsidiary of

CommunityONE Bank

Took action to permit FNB United stock to be eligible for

DTCC’s

Direct Registration System (DRS) that allows

registered shareholders to hold stock in book entry form.

Appendix II -2007 Q-3 Accomplishments

Implemented Electronic Image Exchange (Bankwide

cash

letter)

Passed OCC HMDA & CRA data scrubs for data submitted from 2002

through 2006

Brought remaining internal SOX testing in house, reducing

other outsourced SOX testing fees

Entered into letter of intent to purchase Capital Bank Battleground

Avenue office in Greensboro

Made “special

provision”

loan

loss

reserve

Appendix II -2007 Q-4 Accomplishments