As a part of a continuing effort to shed expenses and strengthen its capital position, Omni Financial Services Inc. in Atlanta is selling its four North Carolina branches to Capital Bank Corp. in Raleigh.

The deal, announced late Thursday, would bring the $1.6 billion-asset Capital Bank into the Fayetteville market, though it has had some customers in the area through its nearby Sanford, N.C., offices. The deal price was not disclosed.

Capital Bank would take control of the branches' $105 million in deposits, and it plans to selectively purchase loans totaling about $50 million. The deal is expected to close in December.

Omni, with $1 billion of assets as of June, entered the Fayetteville market about eight years ago.

Its capital position has been weakened of late by large losses on loans to residential developers. At June 30, its ratio of risked-based capital to total assets was 9.23%, 77 basis points below the minimum to be considered well-capitalized.

To cut costs, the company recently laid off 20% of its employees, including its chief risk officer and president.

The publicly traded Omni is also in danger of having its stock delisted from the Nasdaq because its shares have been trading below $1 since May.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.