CapStone Bank in Raleigh, N.C., has agreed to buy Patriot State Bank in Fuquay-Varina, N.C., for roughly $10.6 million.
The $237 million-asset CapStone would pay in a combination of cash and stock for Patriot, which has three branches and $139 million of assets.
Under the deal, Patriot shareholders can elect to receive 0.80 shares of CapStone common stock in exchange for each share of Patriot common stock, $6.45 a share in cash or a combination of cash and stock.
The deal is expected to close by yearend. Raymond James & Associates and Gaeta & Eveson advised CapStone. Patriot State was advised by The Orr Group and Wyrick Robbins Yates & Ponton.
CapStone announced plans last month to open a second office this year in Cary, N.C.
