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updated 00:53, Wed September 19, 2007

FNB United Sells Credit Card Portfolio to US Bancorp

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ASHEBORO, N.C. (AP) -- Bank holding company FNB United Corp. said Tuesday its subsidiary CommunityONE Bank sold its credit card portfolio, along with other portfolios to a division of US Bancorp.

CommunityONE divested its credit card portfolio, as well as portfolios acquired from United Financial Inc. and Integrity Financial Inc. to Elan Financial Services, a division of US Bancorp, as part of the company strategy, FNB said.

FNB will realize a one-time gain of $1.3 million that will be reported in its third-quarter results. Additionally, a $250,000 expense will be recorded to cover the buyout of two contracts with Visa.

Shares of FNB fell 5 cents to $16.02 in afternoon trading, while shares of US Bancorp added 43 cents to $32.72.

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