RBC Centura Expands Footprint in Fast-Growing Southeastern U.S.
Acquires 39 AmSouth Branches in Alabama
RALEIGH, NC, November 1, 2006 - RBC Centura Bank, a wholly owned subsidiary of Royal Bank of Canada (RY on NYSE and TSX), and AmSouth Bancorporation (ASO on NYSE) today announced the signing of an agreement pursuant to which RBC Centura Bank will acquire 39 branches in Alabama owned by AmSouth Bank. The acquisition, which is expected to be completed in March 2007, is subject to customary closing conditions, including approval by U.S. federal and state regulators. Terms of the transaction were not disclosed.
“Alabama is a strategic and logical extension of our current footprint and banking center network,” said Scott Custer, chief executive officer of RBC Centura. “Key Alabama markets closely resemble other diverse and growing markets in which RBC Centura has had a long-time presence and solid understanding.”
The Alabama economy has grown faster than the broader U.S. economy since 2001, a trend that is expected to continue. In addition, job growth in the state has been faster than the national average since early 2004 and business spending through 2006 is expected to continue to be strong. “This acquisition provides us with an attractive client and business base that supports RBC Centura's overall strategy of disciplined, affordable investments to expand our distribution network,” said Custer.
Acquiring the 39 branches provides RBC Centura with immediate scale and assets in Alabama, making RBC Centura the state’s seventh largest financial institution by deposits. Combined, the 39 branches RBC Centura is acquiring have approximately $1.5 billion in loans and $2.0 billion in deposits as of July 31, 2006. The branches are being divested by AmSouth, as a result of the pending merger between AmSouth and Regions Financial Corp., and their agreement with the U.S. Department of Justice and the Federal Reserve Board. All employees of the branches will be offered positions at RBC Centura.
“This acquisition satisfies our criteria for finding opportunities that have a good economic, strategic and cultural fit. Moving into Alabama with immediate scale and opportunity is an exciting milestone for RBC Centura that complements our growth strategies in the region, including our de novo branch approach in high-growth markets in the Southeastern U.S.,” Custer said.
This is the second acquisition that RBC Centura has announced in 2006. In August, RBC Centura announced its intention to acquire Flag Financial Corporation, which operates 17 branches serving approximately 22,000 households in the metro Atlanta, central and western areas of Georgia. The Flag transaction is tracking on schedule to close December 8, 2006.
In addition to RBC Centura, RBC's U.S. operations include: RBC Dain Rauscher, a full-service securities firm; RBC Insurance, a national provider of insurance protection and asset accumulation solutions; RBC Capital Markets, with corporate and investment banking operations in New York, Minneapolis, San Francisco, Houston and other select U.S. locations; and Global Private Banking with offices in New York, Miami, Houston and San Francisco.
About RBC Centura Bank
RBC Centura offers a wide range of financial services and advice, including a complete line of banking, investment, loan, mortgage, life insurance, and other services, to individuals, businesses and public institutions throughout the Southeast. RBC Centura's multifaceted customer access network includes more than 270 full-service banking centers, an extensive ATM network, and telephone and Internet banking. In addition, RBC Centura offers builder finance products through telephone and Internet banking. According to the Federal Reserve Board, RBC Centura is the 50th largest U.S. commercial bank as of June 2005. RBC Centura Bank is a wholly owned subsidiary of Royal Bank of Canada (RBC).
Royal Bank of Canada (RY on NYSE and TSX) uses the initials RBC as a prefix for its businesses and operating subsidiaries, which operate under the master brand name of RBC Financial Group. Royal Bank of Canada is Canada’s largest bank as measured by market capitalization and assets, and is one of North America’s leading diversified financial services companies. It provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services on a global basis. The company employs approximately 70,000 full and part-time employees who serve more than 14 million personal, business and public sector clients through offices in North America and some 30 countries around the world. For more information, please visit www.rbc.com.
Kristen Doherty, RBC Centura, (919) 788-6076, firstname.lastname@example.org
Beja Rodeck, RBC, (416) 974-5506, 1-888-880-2173, email@example.com
Dave Mun, Investor Relations, RBC, (416)-955-7808, firstname.lastname@example.org
Safe Harbor Regarding Forward-Looking Statements
Certain statements contained in this press release may be deemed to be forward-looking statements under certain securities laws, including the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities legislation, and Royal Bank of Canada (“RBC”) intends that such forward-looking statements be subject to the safe-harbor created thereby. The words "may," "could," "should," "would," "suspect," "outlook," "believe," "plan," "anticipate," "estimate," "expect," "intend," "forecast," "objective" and words and expressions of similar import are intended to identify forward-looking statements.
By their very nature, forward-looking statements involve numerous assumptions, and inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements, including statements about the proposed acquisition of branches from AmSouth Bancorporation (“AmSouth”) by RBC Centura, will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause our actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to the possibility that the proposed transaction does not close when expected or at all because required regulatory, shareholder or other approvals are not received or other conditions to the closing are not satisfied on a timely basis or at all, that RBC Centura and AmSouth may be required to modify the terms and conditions of the proposed transaction to achieve regulatory approval, that the Alabama economy and business spending does not continue to grow as expected, or that the anticipated benefits of the transaction are not realized as a result of such things as the strength of the economy and competitive factors in the areas where the AMSouth branches do business; the impact of changes in the laws and regulations regulating financial services and enforcement thereof (including banking, insurance and securities); judicial judgments and legal proceedings; RBC Centura’s ability to complete the acquisition of the branches and to integrate them with RBC Centura successfully; reputational risks, and other factors that may affect future results of RBC including changes in trade policies, timely development and introduction of new products and services, changes in tax laws, and technological and regulatory changes. We caution that the foregoing list of important factors is not exhaustive.
RBC assumes no obligation to update the forward-looking statements contained in this press release.
Expectations of the Alabama economy and business spending are based on our review of publicly available third party economic analysis and reports.