With this investment, Capital Bank will bolster its franchise in North Carolina, particularly in Charlotte, as well as in Greensboro/Winston Salem and the Catawba/Caldwell county area.
Capital Bank said that its franchise will be expanded by 45 branches and $2.4bn in assets.
In addition to banking branches across central, southern and western North Carolina, CommunityOne has loan production offices in Raleigh and Winston-Salem, North Carolina and Charleston, South Carolina.
Commenting on the deal, Capital Bank chairman and CEO Gene Taylor said: "This combination creates a high-powered Carolinas franchise while meeting the financial expectations of our shareholders.
"CommunityOne brings us skilled employees, a complementary branch network, and high-quality loan and deposit relationships, and the transaction improves Capital Bank’s returns. We applaud the excellent work of CommunityOne’s leadership in turning around one of the Carolina’s oldest franchises, and we welcome CommunityOne employees to the Capital Bank team."
As per the agreed terms, CommunityOne shareholders will receive $14.25 per share in cash or 0.43 of a share of Capital Bank Class A common stock, with the total consideration to consist of 85% stock and 15% cash.
Subject to Capital Bank and CommunityOne shareholder and regulatory approvals, as well as other customary closing conditions, the acquisition is expected to be completed in first quarter 2016.
