CAPITAL REACHES ACCORD ON ARKANSAS PURCHASES

Capital Bancorporation Inc. announced Friday the signing of a definitive agreement to buy all of the capital stock of Home Federal Savings and Loan Association, which has three banks in Jonesboro, Ark., and a loan office in Paragould, Ark.

Home Federal had total assets of $79,616,000, total deposits of $64,683,000, total loans, net of unearned interest, of $61,457,000, and equity capital of $4,948,000 as of Sept. 30.

Jonesboro is the economic hub of Northeastern Arkansas with a population of about 50,000.

It is the state's fifth largest city with a trade area of about 400.000 people.

Jonesboro's demographic and economic characteristics as a regional commercial and medical center, and home to Arkansas State University, are similar to other areas where Capital has affiliated banks.

Under the agreement, the cash purchase price will be $6,856,879. The acquisition will be financed through debt to be provided by an unaffiliated lender.

The acquisition is expected to be completed during the second quarter next year.

Home Federal Chairman Glenn Dickson said Capital's purchase would help broaden the range of services for Home Federal's customers.

David Collier, Capital Chief Financial Officer, said, "We are excited about the opportunities the Jonesboro market presents."

With this acquisition, Capital will have consolidated total assets of about $1 billion.

Capital is a multi-bank holding company headquartered in Cape Girardeau. It operates 31 institutions through six affiliate banks in southeastern, southwestern, central, and eastern Missouri.

The Company's common stock and preferred stock are traded on the NASDAQ National Market System as "CABK" and "CABKZ."