Eau Claire,Wis.-based Royal CreditUnion ($1.79 billion) agreed to buy St. Paul, Minn.-basedCapital Bank ($35.9million) from First Sleepy EyeBancorp. Inc.

The termsof the deal,which is slated for completion in the second half of 2016, were not disclosedin the April 27 news release. For comparison, however, SNL's valuations for bankand thrift targets in the Midwest between April 27, 2015, and April 27, 2016,averaged 125.15% of book and 129.41% of tangible book and had a median of18.61x last-12-month earnings, on an aggregate basis.            

The deal isstill subject to regulatory approval.

Royal willassume about $35 million total assets in the transaction under the terms of theagreement, which, once finalized, will allow the credit union to service theacquired assets and assumed liabilities out of Capital Bank's existing branchlocated at 1020 Rice Street in St. Paul.According to SNL data, Capital Bank operates two branches in Ramsey County,Minn., ranked No. 25 with a 0.06% share of approximately $47.83 billion intotal market deposits.

Accordingto the release, current Capital Bank ownership will retain its ownership in allof its other 14 bank locations in rural areas of Minnesota, Iowa, and NorthDakota. The St. Paul urban location is the only branch affected by the sale.

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