FCNB Corp. of Frederick said yesterday that it has agreed to buy Rockville-based Capital Bank NA in a stock deal valued at $42 million.
Capital Bank shareholders would receive $40 of FCNB shares for each share of Capital they own. The deal is subject to approval by shareholders of Capital Bank and FCNB, and is expected to close in the fourth quarter.
With the transaction, FCNB will acquire assets worth approximately $170 million.
Capital Bank is a commercial bank with four branches, in Rockville, Friendship Heights and Farragut Square in the District of Columbia, and Tysons Corner in Virginia. The acquisition marks FCNB's first foray into Washington and Virginia.
FCNB said the merger will be accretive to its 1999 earnings because it will be able to combine back-office support tasks between the two banks. A one-time charge of about $1.75 million will be taken when the deal is completed, the bank said.
The deal, along with the planned acquisition of seven First Virginia branches, will give it 32 branches and assets of $1.2 billion, FCNB said.
Pub Date: 6/24/98