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Subsequent Events
9 Months Ended
Sep. 30, 2011
Subsequent Events [Abstract] 
Subsequent Events

22. Subsequent Events

Recapitalization and Merger

On October 4, 2011, FNB United received the necessary approvals from the FRBR, to acquire Granite through the Merger, to undertake the TARP Exchange with the U.S. Department of the Treasury, and to pay deferred dividends on certain of its trust preferred securities. The individuals proposed to serve as directors and officers of the Company upon closing of the Merger and proposed $310 million capital raise received nonobjection from the FRBR, as required to assume their positions at the Company. The Bank also received the necessary approvals from the OCC on October 7, 2011 to complete the contemplated transactions. Each of the foregoing approvals was required to consummate the recapitalization and the Merger.

On October 19, 2011, the shareholders of FNB United approved the proposals necessary for FNB United to complete the Merger with Granite and the $310 million recapitalization plan described in Note 21, Capital Raise, Merger Agreement and Related Matters. FNB United filed articles of amendment to its articles of incorporation on October 19, 2011 to increase the number of authorized shares of FNB United capital stock from 150,200,000 to 2,510,000,000, consisting of 2,500,000,000 shares of common stock (an increase from 150,000,000 shares) and 10,000,000 shares of preferred stock (an increase from 200,000 shares). The amendment also removed the par value of FNB United's common stock.

On October 21, 2011, FNB United completed the Merger, issued and sold $310 million of its common stock to various accredited investors at $0.16 per share, exchanged its Fixed Rate Cumulative Preferred Stock, Series A issued to the United States Department of the Treasury for 108,555,303 shares of its common stock in the TARP Exchange, and amended and restated the warrant issued to the Treasury in connection with FNB United's participation in the Capital Purchase Program of TARP. In addition, on October 21, 2011, the Bank completed the SunTrust Settlement and made the $400,000 payment to the District Court under the terms of the DPA. For further information regarding the Merger and the terms of the transactions comprising the recapitalization of FNB United, see Note 21, Capital Raise, Merger Agreement and Related Matters.

On October 21, 2011 and in connection with the recapitalization of the Company, FNB United deposited with the various trustees for its trust preferred securities sums sufficient to pay the interest accrued and accruing to December 30, 2011 on the junior subordinated notes related to those trust preferred securities. Following that date, FNB United expects again to defer payment of interest on the outstanding junior subordinated notes related to its trust preferred securities.

Reverse Stock Split

FNB United filed articles of amendment to its articles of incorporation on October 31, 2011 to effect the Reverse Stock Split. The amendment became effective following the close of trading on October 31, 2011. With the filing of this quarterly report on Form 10-Q, share and per share amounts have been retrospectively adjusted for the Reverse Stock Split. A purpose of the Reverse Stock Split is to increase the per share trading price of FNB United's common stock to satisfy the $1.00 minimum bid price requirement for continued listing on The Nasdaq Capital Market. As a result of the Reverse Stock Split, every 100 shares of FNB United's common stock issued and outstanding prior to the opening of trading on November 1, 2011 will be consolidated into one issued and outstanding share. No fractional shares will be issued as a result of the Reverse Stock Split. Instead, any fractional share resulting from the Reverse Stock Split will be rounded up to the next largest whole share.