United we stand

In actuality, their union could thrive, says Tony Plath, associate professor of finance at UNC Charlotte. FNB’s Greensboro branches and Bank of Granite’s in Mecklenburg County give the new bank — it will do business as FNB’s subsidiary, CommunityOne Bank — a presence in two of the state’s fastest-growing markets. Its $2.8 billion in assets will give it a bigger cushion against the cost of new federal regulation. Close a few of its rural branches, Plath says, “and you’ve got yourself a dandy little $3 billion bank.” If FNB can’t find an additional $155 million, however, the merger will remain a fantasy.

Whatever its outcome, the merger is illustrative of an interesting development in the Financial 100: Through mergers and acquisitions, some troubled banks are starting to get the capital they need to survive. The deals also allow buyers to expand quickly into desirable markets. The Financial 100’s biggest climber, Charlotte-based North American Financial Holdings Inc., made its ascent by buying two banks — it also bought three shuttered institutions from the Federal Deposit Insurance Corp. — including No. 11 on last year’s list, Raleigh-based Capital Bank Corp. Last year, North American wasn’t even on the Financial 100, which is based on revenue. This year, it’s No. 14.

Burlington-based MidCarolina Financial Corp., No. 42 and operating under a regulatory consent agreement, plans to merge with Danville, Va.-based American National Bankshares Inc. Charlotte-based Park Sterling Bank, No. 45, bought a South Carolina bank. “We’re beginning to see some deals get done,” says Ray Grace, N.C. deputy commissioner of banks. “We’re beginning to see a bit of thawing. That’s a good thing.”