The board of FNB United Corp., the holding company for CommunityONE Bank, has declared a quarterly cash dividend of 2.5 cents per share, a reduction from 10 cents per share in the previous quarter.

The dividend was paid April 24 to shareholders of record on March 26.

"Our decision to reduce the dividend was thoroughly and thoughtfully reviewed and considered many factors, including capital adequacy, earnings, payout ratios and yield," said President and CEO Michael C. Miller. "We believe that conserving capital through a reduction in the dividend is in the best long-term interest of our shareholders and will help ensure that FNB United maintains its well-capitalized position.

"We look forward to restoring dividends to previous levels when earnings improve and the recovery in the regional economy and housing markets is more evident."

FNB United Corp. is the Asheboro-based bank holding company for CommunityONE Bank and the bank's subsidiary, Dover Mortgage Co. Opened in 1907, CommunityONE (MyYesBank.com) operates 45 offices in 38 communities throughout central, southern and western North Carolina.