Capital Bank Financial, CommunityOne Merger Approved

By Andrew M. Ballard

Oct. 12 — Capital Bank Financial Corp. and CommunityOne Bancorp, both based in Charlotte, N.C., have received approval from federal and state regulators to merge.

The transaction is expected to close on or about Oct. 26., the bank holding companies said in a joint announcement Oct. 12. The Federal Reserve, Federal Deposit Insurance Corporation and North Carolina Office of the Commissioner of the Banks all have approved the deal, the companies said.

Under the merger agreement first announced in November 2015, Capital Bank Financial Corp. will be the surviving corporation, acquiring CommunityOne. Capital Bank Financial claims about $7.6 billion in assets and CommunityOne has some $2.4 billion.

When it was initially disclosed, the deal was estimated to be worth about $350 million. The merger will strengthen Capital Bank Financial’s position in North Carolina as well as a regional market with a healthy growth potential.

Capital Bank Financial Corp., the parent of Capital Bank Corp., claims 151 branches in the Carolinas, Florida, Tennessee and Virginia. Its acquisition of CommunityOne will add 41 branches in North Carolina as well as loan production offices in both Carolinas.

Under the deal, CommunityOne shareholders will receive either $14.25 in cash or 0.43 shares of Capital Bank Financial Class A common stock for each share they own. Shareholders can elect to receive either cash, a stock swap or a prorated combination of the two, and must submit their elections by Oct. 24.

‘High-Powered’ Entity

CommunityOne shareholders sued to block the merger, claiming that the board of directors failed to make adequate disclosures under the Securities Exchange Act of 1934. The companies announced in April that they had reached a settlement and that additional disclosures would be made to shareholders.

Kenneth Posner, chief of strategic planning and investor relations for Capital Bank Financial, declined to comment on the litigation. Attorneys for the plaintiffs were unavailable to do so.

“This merger will create a high-powered Carolinas franchise while meeting the financial expectations of our shareholders, Gene Taylor, Capital Bank Financial’s chairman and chief executive officer said in an Oct. 12 statement.

“Based on the anticipated closing date, we expect to convert systems during the first quarter of 2017, which would position us to start recognizing cost savings beginning in the second quarter,” Chris Marshall, the bank’s chief financial officer, said in the announcement.

To contact the reporter on this story: Andrew M. Ballard in Raleigh, N.C. at

To contact the editor responsible for this story: Mike Ferullo at

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