Home Savings Bank of Siler City to be Acquired by Capital Bank Corporation

Home Savings Bank of Siler City, Inc., a Siler City, North Carolina-based bank, has announced that its shareholders have voted in favor of the acquisition by Capital Bank Corporation. The deal, which values Home Savings at $1.28 per share, will see Capital Bank shareholders receive 1.28 shares of Capital Bank common stock for each share of Home Savings common stock. The combined institution, Capital Bank Corporation, will have total assets exceeding $180 million and will maintain Home Savings' presence in Chatham County, North Carolina. The acquisition is expected to enhance Home Savings' product offerings and provide customers with access to a broader range of financial services.

Key Takeaways:

• Home Savings Bank shareholders approve acquisition by Capital Bank Corporation, with a ratio of 1.28 shares of Capital Bank common stock for each share of Home Savings common stock.
• The acquisition will result in the formation of a new bank holding company, Capital Bank Corporation, with the goal of expanding Home Savings' product offerings and customer services.
• Capital Bank Corporation will maintain Home Savings' presence in Chatham County, North Carolina, and leverage the latter's established customer base and market share.
• Home Savings Bank has approximately $59 million in total assets and is the third-largest bank depositor in Chatham County, North Carolina.
• Capital Bank Corporation, headquartered in Raleigh, North Carolina, has over $120 million in total assets and operates five banking offices in Raleigh, Sanford, and Cary.
• The combined institution will have total assets exceeding $180 million.

Statistics:

• Total assets of Home Savings Bank: $59 million (as of acquisition announcement)
• Total assets of Capital Bank Corporation: $120 million (as of acquisition announcement)
• Total assets of combined institution: over $180 million
• Number of banking offices in the Capital Bank Corporation network: five (in Raleigh, Sanford, and Cary)
• Number of shares required for Home Savings shareholders: 1.28 shares of Capital Bank common stock for each share of Home Savings common stock

Sources:

• Home Savings Bank of Siler City, Inc. Press Release, dated March 29, 1999.
• Capital Bank Corporation Press Release, dated March 25, 1999 (informing of shareholder approval for acquisition).