Capital Bancorp, the holding company for Capital Bank, and Integrated Financial Holdings, the holding company for West Town Bank & Trust and Windsor Advantage, announced the receipt of regulatory approval from the Office of the Comptroller of the Currency (OCC) for the proposed merger of IFH with and into CBNK.

CBNK previously announced that it has also received approval from the Federal Reserve Bank of Richmond, acting on delegated authority from the Board of Governors of the Federal Reserve System, for the merger. The merger, which was announced March 28, 2024, was also approved by the shareholders of both CBNK and IFH on August 15, 2024. The parties have now received all required approvals necessary to consummate the merger, which remains subject to other customary closing conditions. Assuming the conditions are satisfied, CBNK and IFH are expected to complete the merger early in the fourth quarter of 2024.

“We are pleased to have received all required approvals and are looking forward to the next chapter of growth for Capital Bank,” said Ed Barry, Chief Executive Officer of CBNK. “This acquisition is expected to result in immediate scale within the USDA and SBA verticals both from an origination and a servicing perspective; it is also a continuation of our strategy to build a business that is diversified across a number of high risk-adjusted return verticals that create value for our customers and shareholders. Our pro forma capital and liquidity position will enable us to participate in the substantial C&I lending and fee income opportunity that we believe exists within IFH’s businesses. The transaction adds to and strengthens our nationwide franchises and product offerings, which will allow us to better serve our customers.”

Pro forma for the acquisition, the combined company is expected to have approximately $3.0 billion in assets with a diversified loan and deposit base and approximately 70% net income contribution from commercial banking.