Jan. 31, CapStone Bank completed its merger with Patriot State Bank, and announced Michael S. Patterson, chairman, president and chief executive officer of CapStone.

“We are pleased to have completed this merger and look forward to serving our combined customer base and communities,” Patterson said. “It also is a positive step for the combined shareholder base, as we continue our focus on creating long-term shareholder value.”

Pursuant to the terms of the merger agreement, Patriot shareholders could elect to receive 0.80 shares of CapStone common stock, or cash in the amount of $6.45 per share, or a combination of cash and stock for each share of Patriot common stock they hold, subject to adjustment as provided for in the merger agreement. Total consideration in the merger will consist of 70 percent CapStone stock and 30 percent cash, and the transaction is valued at approximately $10.6 million.

Based on reported totals as of Sept. 30, 2012, the combined bank will have approximately $373 million in total assets, $298 million in total deposits, and $278 million in total loans; and will operate four branches in North Carolina, including one in Fuquay-Varina. CapStone’s full-service branch located at Regency Park in Cary opened Feb. 4.

Raymond James and Associates, Inc. acted as financial advisor to CapStone in connection with the merger, with Gaeta and Eveson, P.A. in Raleigh serving as legal advisor. Patriot State Bank was advised by The Orr Group, LLC, Winston-Salem, N.C., with Wyrick Robbins Yates and Ponton LLP, Raleigh, N.C., as legal advisor.