Capital gains by buying Burlington bank.

• Position: TRIANGLE

Two years ago, Raleigh-based Capital Bank restated its quarterly earnings because of bad loans. It had been one of the state's most acquisitive banks and more than doubled its assets during 2002. But it halted its growth spurt and got its finances in order. Now it's ready to grow quickly again by purchasing Burlington-based 1st State Bancorp, a bank almost half its size, for $115 million. Capital's assets will increase from about $900 million to $1.3 billion. The deal isn't supposed to...