Capital Bank Corp. of Raleigh said Monday that it has a letter of intent to sell a 9.9% stake to Patriot Financial Partners LP, a private-equity firm in Philadelphia, as part of an offensive capital raise.

The deal with Patriot is contingent on the $1.7 billion-asset Capital completing a previously announced public stock offering by Feb. 1. Combined, the two transactions would raise at least $55 million, the amount Capital originally sought from the public offering alone.

Patriot would be allowed to designate one director to Capital's board, under the term of the deal.

Capital said the proceeds would be used for general corporate purposes, including strengthening the already healthy capital ratios at its bank unit and pursuing "strategic growth opportunities."

The company acquired 1st State Bancorp Inc. of Burlington, Calif., in 2006 and four branches in the Fayetteville, N.C., area from Omni National Bank last year. It said in a prospectus for the public offering it might consider deals similar to those, but has not identified any candidates.

Capital is also interested in buying failed banks from the Federal Deposit Insurance Corp., the prospectus said.

Capital's bank unit was well capitalized on Sept. 30, with a total risk-based capital ratio of 12.32%, according to FDIC data. It has 32 offices in North Carolina.

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