8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 27, 2013

FNB United Corp.(Exact name of registrant as specified in its charter)

North Carolina	000-13823	56-1456589
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)
150 South Fayetteville Street, Asheboro, North Carolina 27203
(Address of principal executive office) (Zip Code)

Registrant's telephone number, including area code:   (336) 626-8300

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
	[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
	[    ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
	[    ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
	[    ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 1.02 Termination of a Material Definitive Agreement

On February 27, 2013, the Federal Deposit Insurance Corporation (“FDIC”) terminated the Order to Cease and Desist (“Order”) that it had issued against FNB United Corp.’s bank subsidiary, Bank of Granite, Granite Falls, North Carolina (“Granite”). The FDIC is the primary federal regulator for Granite.

The Order, which had been issued on August 17, 2009 pursuant to a Stipulation and Consent of an Issuance of An Order to Cease and Desist, with the FDIC and the North Carolina Commission of Banks, dated August 12, 1009, had among other things, included a capital directive that required Granite to maintain total capital at least equal to 12% of risk-weighted assets and Tier 1 leverage capital at least equal to 8% of adjusted total assets. It also required Granite to develop and maintain various policies and procedures to improve Granite’s asset quality, by reducing classified assets and concentrations of credit, improve liquidity, contingency funding and asset liability management, implement effective written lending and collection policies and develop and submit a long term written strategic plan and budget. The Order had been attached as Exhibit 10.1 to the Form 8-K filed with the Securities and Exchange Commission on August 27, 2009 by Bank of Granite Corporation, which FNB United Corp. acquired on October 21, 2011.

While the Order has been terminated, Granite has continuing obligations to adhere to regulatory requirements relating to, among other things, maintenance of capital in excess of regulatory minimums, continued reduction of classified assets, improvements in asset quality and enhancement of bank operations that continue to warrant improvement.

On March 1, 2013, Granite issued a press release announcing the termination of the Order. This release is attached as Exhibit 99.1 and is incorporated herein by reference.

ITEM 9.01	Financial Statements and Exhibits
(d) Exhibits.
Exhibit No.	Description of Exhibit
99.1	Press Release, dated March 1, 2013, announcing termination of Cease and Desist Order issued against Bank of Granite, Granite Falls, North Carolina.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

March 1, 2013 (Date)	FNB United Corp. (Registrant)
	/s/ David L. Nielsen David L. Nielsen Chief Financial Officer

EX-99.1

For immediate release:	For more information:
March 1, 2013	Pam Cranford, 980.819.6221

Bank of Granite Cease and Desist Order Lifted by FDIC

Granite Falls, NC - Bank of Granite announced today that the FDIC has terminated its Cease and Desist Order issued against the Bank, effective February 27, 2013.

“We are very pleased that the FDIC has determined to take this action acknowledging the progress we are making to restore the Bank to financial health,” said Brian Simpson, Chief Executive Officer of Bank of Granite and its parent, FNB United Corp. (Nasdaq:FNBN). “Our entire organization has been working hard to restore the Bank to a solid position, and we will continue to adhere to the policies, procedures and processes we put in place to reduce problem assets, improve asset quality and enhance bank operations. These are all sound principles in running a quality organization.”

“Our goals since we acquired Granite and recapitalized it with $55 million in new capital have been to complete the credit clean-up, return the bank to service in its community and integrate flawlessly with our other bank subsidiary, CommunityOne Bank,” said Bob Reid, President of Bank of Granite and its parent, FNB United Corp. “This development will allow us to complete these goals.”

Bank of Granite and CommunityOne Bank, N.A. are subsidiaries of the Asheboro, NC-based bank holding company, FNB United Corp. Opened in 1906, Bank of Granite operates 17 branches in seven North Carolina counties - Burke, Caldwell, Catawba, Iredell, Mecklenburg, Watauga and Wilkes. Opened in 1907, CommunityOne operates 44 branches in 37 communities throughout central, southern and western North Carolina. Bank of Granite and CommunityOne are full-service banks, Equal Housing Lenders and members of the FDIC.

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