Capital Bank, the Raleigh-based lender with 32 branches, plans to raise as much as $55 million by selling new shares.

The publicly traded bank will use the stock sale to strengthen its balance sheet and "support our strategic growth opportunities in the future," Capital Bank wrote in a filing with the Securities and Exchange Commission.

The filing follows the bank's quarterly earnings report this week, which showed Capital Bank had a $3 million profit in the three months that ended Sept. 30.

“Given our positive core earnings trend and recent market developments, we believe that now is a favorable time to raise money in the capital markets to further strengthen our already robust capital levels for general business as well as strategic purposes,” said CEO B. Grant Yarber, in a prepared statement.

He declined further comment on the proposed stock sale, citing SEC regulations.

Capital Bank intends to hold a shareholder meeting on Dec. 4 to approve the sale of additional stock. The timing also will depend on stock market conditions.

Capital Bank has cut the size of its board to reduce costs and eventually bring in some new voices.

The Raleigh-based bank will have 10 directors, down from 17. Capital Bank made the move after hiring an outside consultant to assess the composition and size of its board.

To account for the weak economy, the company has frozen salaries this year and suspended 401(k) matches for its workers. So asking the board to sacrifice made sense, said CEO B. Grant Yarber.

"It was getting more difficult to be nimble and move quickly with 17 board members," Yarber said. "It's painful because I genuinely like each and every one of these people."