CAPITAL BANK WILL PURCHASE MAGNA BANK

Capital Bancorporation Inc. announced it has received approval by the Board of Governors of the Federal Reserve System for the acquisition of Magna Bank of Southern Missouri from Magna Group Inc. of St. Louis.

Magna Bank of Southern Missouri is headquartered in Ozark, a suburb of Springfield, and has nine facilities, including banks at Springfield and Branson. As of Sept. 30, the bank had total assets of $174,429,000; total deposits of $160,172,000; total loans, net of unearned interest, of $109,419,000; and equity capital of $12,794,000.

Under terms of the purchase agreement, the aggregate cash purchase price will equal 1.35 times the book value of the bank, as adjusted, with the purchase price not to exceed $17,384,000. The acquisition will be financed by a public offering of preferred stock (depositary shares) of Capital Bancorporation that was completed during June, and from additional debt to be provided by an unaffiliated lender. The transaction is expected to be completed by Dec. 31.

The acquisition will increase the presence of Capital Bancorporation in Southern Missouri. Three of the company's existing five banks are in Southeast Missouri, including banks in Cape Girardeau, Sikeston and Perryville. It will also afford the company a presence in the growing Springfield and Branson markets. With the acquisition, Capital Bancorporation will have total assets of approximately $770 million.

Capital Bancorporation is a multibank holding company headquartered in Cape Girardeau. The firm operates 17 banking facilities through five subsidiary banks in Southeast, central and eastern Missouri.