Capital Bank acquires Omni National Bank offices

Sep 26, 2008 (The Fayetteville Observer - McClatchy-Tribune News Service via COMTEX) -- OFSI | Quote | Chart | News | PowerRating -- Sep. 26--Capital Bank Corp. in Raleigh announced that it has entered into a definitive purchase agreement to acquire the four Fayetteville-area offices of Omni National Bank in a cash transaction, the company said in a news release.

Omni National Bank is the banking subsidiary of Omni Financial Services Inc., a bank holding company headquartered in Atlanta.

Capital Bank will assume deposits currently totaling about $105 million and will purchase approximately $50 million in selected loan balances, the release said. In addition, Capital Bank will acquire the real estate assets and fixed capital equipment associated with the four branches. Upon completion of the transaction, the Fayetteville branches will operate as full service Capital Bank branch offices.

B. Grant Yarber, Capital Bank Corp. president and chief executive officer, said in a statement, "Our neighbors in Fayetteville have always been in our expansion plans. Fayetteville and the surrounding area have much to offer as a leading economic center, and now the future is even brighter with the Base Realignment and Closure Act (BRAC). Fayetteville is home to Fort Bragg, the largest global Army installation with an estimated 10 percent of the Army's active forces. BRAC is expected to increase the population at Fort Bragg by approximately 30 percent through 2012, generating countless small business and other economic opportunities throughout the region."

Previously, Capital Bank Corp. has been servicing "a number of Fayetteville relationships" from nearby offices in Sanford, Yarber said. "We look forward to providing the convenience of local branches to our new customers and are committed to continuing the great traditions of customer and community service after the transaction is completed."

Stephen M. Klein, Omni's chairman and chief executive officer, is quoted in the release as saying, "Given the current market environment, the divestiture of our North Carolina community banking operations is necessary as it strengthens our capital position. The Fayetteville branches have played an important role in the history of our company, and I would like to thank all the employees for their hard work and dedication since 2000. I am confident that both our employees and customers will be treated well by Capital Bank, an organization with which we have been exceedingly impressed during the negotiations. This is a positive result for all parties."

The transaction is expected to close in December, pending regulatory approval.

Capital Bank Corp., with headquarters in Raleigh, has approximately $1.6 billion in total assets, the company said. Capital Bank operates 27 banking offices in Asheville, Burlington, Cary, Graham, Hickory, Mebane, Morrisville, Oxford, Pittsboro, Raleigh, Sanford, Siler City, Wake Forest and Zebulon.

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