CONTACT:
B. Grant Yarber
President and Chief Executive Officer            
Phone: (919) 645-3494
Email: gyarber@capitabank-nc.com

Financial Marketing Veteran Joins Capital Bank

Raleigh, N.C. – May 5, 2009 – Capital Bank recently named bank-marketing veteran Prudy T. Frederick vice president and director of marketing. Frederick brings over 20 years of experience in marketing financial services to her new role with the Raleigh-based community bank.

Frederick previously served as marketing director for North State Bank, a community bank serving Wake, New Hanover and Carteret counties. She brings extensive knowledge to the position as she has held high-level marketing and product development positions with banking institutions throughout her career.

“We are looking forward to what Prudy and her wealth of experience will bring to our team,” said B. Grant Yarber, president and CEO of Capital Bank. “Her perspective and insight will make a valuable impact as she directs our mission and message to our customers during this economic environment.”

“Capital Bank’s success as a strong community bank speaks for itself, and I will work diligently with the team to continue to foster the bank’s excellent reputation as we expand throughout North Carolina,” said Frederick.

Frederick received a Bachelor of Science degree in business administration from the University of North Carolina at Chapel Hill. She and her husband Ron have two daughters, Betsy, 21, and Emily, 17. A self-described soccer mom (both daughters are avid soccer players), Frederick volunteers for her youngest daughter’s Capital Area Soccer League team. Older daughter Betsy was a member of the University of North Carolina at Chapel Hill’s national championship team. Frederick also enjoys horseback riding and reading in her spare time.