FNB United Corp. Shareholders Approve Charter Amendment
Shareholders of FNB United Corp., the parent company of CommunityONE Bank, have voted to adopt an amendment to the company's charter to permit the issuance of preferred shares of stock without voting rights restrictions.
The change allows the company to participate in the U.S. Treasury Department's Capital Purchase Program (CPP). The CPP is a voluntary program that encourages healthy U.S. financial institutions to build capital to increase the flow of financing to businesses and consumers and to support the economy.
The company already has received preliminary approval to participate in CPP and, as a participant, may issue up to $54.3 million in senior preferred stock to the U.S. Treasury. It is anticipated that the sale of the preferred stock is expected to close in 30 days and is contingent upon the completion of standard closing documents.
In other business at the shareholder meeting, the company announced the adoption of a proposal from its Nominating and Governance Committee, which recommended separation of the office of chairman and the office of president and CEO and the election of an independent chairman.
Effective Feb. 1, 2009, James M. Campbell Jr. will serve as chairman of the board of FNB United Corp and Community-ONE Bank. Campbell, 70, has served on the company's board since 1984.
He retired as president and treasurer of Sew Special Inc. in Asheboro, a manufacturer of private label apparel, in 2005. He currently serves as chairman of the Board of Trustees for Randolph Community College and as a member of the Board of Directors for Randolph Hospital Inc.
Michael C. Miller will continue in his role as president and CEO of the holding company and bank.
FNB United Corp. is the central North Carolina-based bank holding company for Community-ONE Bank, and the bank's subsidiary, Dover Mortgage Co.
Opened in 1907, Community-ONE (MyYesBank.com) operates offices in communities throughout central, southern and western North Carolina.
Dover, based in Charlotte, has a retail origination network in key growth markets across the state in addition to wholesale operations.
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