RBC Bank
Encyclopedia
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
retail banking division of the Royal Bank of Canada
Royal Bank of Canada
The Royal Bank of Canada or RBC Financial Group is the largest financial institution in Canada, as measured by deposits, revenues, and market capitalization. The bank serves seventeen million clients and has 80,100 employees worldwide. The company corporate headquarters are located in Toronto,...
. The headquarters for the bank are located in Raleigh
Raleigh, North Carolina
Raleigh is the capital and the second largest city in the state of North Carolina as well as the seat of Wake County. Raleigh is known as the "City of Oaks" for its many oak trees. According to the U.S. Census Bureau, the city's 2010 population was 403,892, over an area of , making Raleigh...
, North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
. Banking centers and automated teller machine
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
s are located throughout the Southeastern United States
Southeastern United States
The Southeastern United States, colloquially referred to as the Southeast, is the eastern portion of the Southern United States. It is one of the most populous regions in the United States of America....
. The company's largest operations are in North Carolina
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
and Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
.
On June 19, 2011, PNC Financial Services
PNC Financial Services
PNC Financial Services Group, Inc. is a U.S.-based financial services corporation, with assets of approximately $264.3 billion...
agreed to buy RBC Bank USA from Royal Bank of Canada
Royal Bank of Canada
The Royal Bank of Canada or RBC Financial Group is the largest financial institution in Canada, as measured by deposits, revenues, and market capitalization. The bank serves seventeen million clients and has 80,100 employees worldwide. The company corporate headquarters are located in Toronto,...
for $3.45-billion. The sale of RBC Bank is expected to close in March 2012, subject to receipt of regulatory approval and customary closing conditions.
History
On November 2, 1990, Peoples Bancorp and Planters Corp., of Rocky MountRocky Mount, North Carolina
Rocky Mount is an All-America City Award-winning city in Edgecombe and Nash counties in the coastal plains of the state of North Carolina. Although it was not formally incorporated until February 28, 1867, the North Carolina community that became the city of Rocky Mount dates from the beginning of...
, North Carolina, merged to form Centura Bank
Centura Bank
Centura Bank was a bank headquartered in Rocky Mount, North Carolina from 1990, when Peoples Bancorp and Planters Corp. merged, to 2001, when Royal Bank of Canada acquired the company and changed its name to RBC Centura.- History of Peoples Bank :...
s. In June 2001, Centura Banks was acquired by Royal Bank of Canada and rebranded as RBC Centura. RBC announced on January 17, 2008 that it would abandon the "Centura" brand in April 2008 and the U.S. operations would operate as RBC Bank
RBC Bank
RBC Bank, formerly Centura Banks, is the United States retail banking division of the Royal Bank of Canada. The headquarters for the bank are located in Raleigh, North Carolina. Banking centers and automated teller machines are located throughout the Southeastern United States...
. Over 1000 employees continued to work in Rocky Mount as of 2011, in such areas as information technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
and mortgage processing
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
.
On June 19, 2011, PNC Financial Services
PNC Financial Services
PNC Financial Services Group, Inc. is a U.S.-based financial services corporation, with assets of approximately $264.3 billion...
agreed to purchase RBC bank for $3.45 billion. The purchase price represents a $112 million discount to the book value of the unit. BB&T Bank also made a bid.
Acquisitions
RBC Centura purchased Tucker Federal Bank parent company Eagle Bancshares in 2002, giving it a substantial customer base in the Atlanta area. The bank merged with Flag Bank, increasing its presence in GeorgiaGeorgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
. RBC continued to grow in the Southeast after acquiring 39 branches of Birmingham
Birmingham, Alabama
Birmingham is the largest city in Alabama. The city is the county seat of Jefferson County. According to the 2010 United States Census, Birmingham had a population of 212,237. The Birmingham-Hoover Metropolitan Area, in estimate by the U.S...
, Alabama
Alabama
Alabama is a state located in the southeastern region of the United States. It is bordered by Tennessee to the north, Georgia to the east, Florida and the Gulf of Mexico to the south, and Mississippi to the west. Alabama ranks 30th in total land area and ranks second in the size of its inland...
-based AmSouth Bank on March 9, 2007. Previously, RBC Centura had no locations in Alabama.
RBC's footprint in Alabama, Georgia, and Florida
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
expanded significantly after its acquisition of Alabama National Bank Corporation (ANB). US approval was given on February 5, 2008. On April 14, 51 branches re-opened as RBC Bank. The remaining branches were re-opened by June 2008. ANB operated in three states through eleven different subsidiaries.
RBC presence in Raleigh, NC
The building of the RBC PlazaRBC Plaza
RBC Plaza, also known as RBC Tower, is the largest and tallest skyscraper in the city of Raleigh, North Carolina, USA. The tower rises to a height of and is situated on a lot housing approximately of office and retail space, parking and residential condominiums...
, finished in 2008, was not the first major move by RBC to become a major part of the community in Raleigh, NC. In 2002, RBC purchased the naming rights for the Raleigh Entertainment and Sports Arena, home to the Carolina Hurricanes
Carolina Hurricanes
The Carolina Hurricanes are a professional ice hockey team based in Raleigh, North Carolina, USA. They are members of the Southeast Division of the Eastern Conference of the National Hockey League , and play their home games at the 18,680-seat RBC Center...
of the National Hockey League
National Hockey League
The National Hockey League is an unincorporated not-for-profit association which operates a major professional ice hockey league of 30 franchised member clubs, of which 7 are currently located in Canada and 23 in the United States...
and North Carolina State University
North Carolina State University
North Carolina State University at Raleigh is a public, coeducational, extensive research university located in Raleigh, North Carolina, United States. Commonly known as NC State, the university is part of the University of North Carolina system and is a land, sea, and space grant institution...
basketball. The arena was renamed the RBC Center, with a 20-year lease at a cost of $80 million. In June 2006, the RBC Center was host for the NHL's Stanley Cup
Stanley Cup
The Stanley Cup is an ice hockey club trophy, awarded annually to the National Hockey League playoffs champion after the conclusion of the Stanley Cup Finals. It has been referred to as The Cup, Lord Stanley's Cup, The Holy Grail, or facetiously as Lord Stanley's Mug...
Finals, and on June 19, 2006, the Carolina Hurricanes
Carolina Hurricanes
The Carolina Hurricanes are a professional ice hockey team based in Raleigh, North Carolina, USA. They are members of the Southeast Division of the Eastern Conference of the National Hockey League , and play their home games at the 18,680-seat RBC Center...
defeated the Edmonton Oilers
Edmonton Oilers
The Edmonton Oilers are a professional ice hockey team based in Edmonton, Alberta, Canada. They are members of the Northwest Division in the Western Conference of the National Hockey League ....
in the RBC Center to win the Stanley Cup
Stanley Cup
The Stanley Cup is an ice hockey club trophy, awarded annually to the National Hockey League playoffs champion after the conclusion of the Stanley Cup Finals. It has been referred to as The Cup, Lord Stanley's Cup, The Holy Grail, or facetiously as Lord Stanley's Mug...
.
In 2011, 500 of 5000 RBC employees worked in Raleigh.
Dunmore Homes
In November 2007, RBC Centura was involved in the "Dunmore Homes" project in SacramentoSacramento, California
Sacramento is the capital city of the U.S. state of California and the county seat of Sacramento County. It is located at the confluence of the Sacramento River and the American River in the northern portion of California's expansive Central Valley. With a population of 466,488 at the 2010 census,...
, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
that stopped all construction on August 8, 2007, due to liquidity issues with the home builder. The company was subsequently sold to a mortgage loan officer for $500 and quickly incorporated
Incorporation (business)
Incorporation is the forming of a new corporation . The corporation may be a business, a non-profit organisation, sports club, or a government of a new city or town...
in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
. The company filed for bankruptcy in Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
. After details of the sale became known to RBC Centura Bank, a major Dunmore Homes creditor
Creditor
A creditor is a party that has a claim to the services of a second party. It is a person or institution to whom money is owed. The first party, in general, has provided some property or service to the second party under the assumption that the second party will return an equivalent property or...
, the bank sued on November 7. The company alleged in a lawsuit filed in Fresno County that the sale of all the assets for a mere $500 wasn't adequate and was done to "hinder, delay and defraud the creditors," including RBC.
RBC financed four Dunmore projects from Bakersfield
Bakersfield, California
Bakersfield is a city near the southern end of the San Joaquin Valley in Kern County, California. It is roughly equidistant between Fresno and Los Angeles, to the north and south respectively....
to Yuba City
Yuba City, California
Yuba City is a Northern California city, founded in 1849. It is the county seat of Sutter County, California, United States. The population was 64,925 at the 2010 census....
. It loaned Dunmore Homes a total of $105 million and, according to an affidavit by a Dunmore Homes official, is still owed $39 million. As collateral
Collateral (finance)
In lending agreements, collateral is a borrower's pledge of specific property to a lender, to secure repayment of a loan.The collateral serves as protection for a lender against a borrower's default - that is, any borrower failing to pay the principal and interest under the terms of a loan obligation...
, it has secured claims against those projects. But the company says the value of a Fresno project is less than the outstanding loan balance
Balance (accounting)
In banking and accountancy, the outstanding balance is the amount of money owed, , that remains in a deposit account at a given date, after all past remittances, payments and withdrawal have been accounted for. It can be positive or negative ....
. Nine major lenders, including RBC, are owed a combined total of $196 million on Dunmore Homes' 26 new-home communities, according to the builder.