RBC Bank

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RBC Bank
Type	Public
Founded	November 2, 1990 in Rocky Mount, North Carolina[1]
Headquarters	Raleigh, North Carolina, USA
Area served	Southeastern United States
Parent	Royal Bank of Canada
Website	rbcbankusa.com

RBC Bank, formerly known as RBC Centura, is the U.S. retail banking division of Royal Bank of Canada (RBC). The bank's headquarters are located in Raleigh, North Carolina. Banking centers and ATMs are located in the southeastern United States.

[edit] History

On November 2, 1990, Peoples Bancorp and Planters Corp., of Rocky Mount, North Carolina, merged to form Centura Banks.^[1] In June 2001 Centura Banks was acquired by Royal Bank of Canada and rebranded as RBC Centura. On April 4, 2008, RBC Centura became RBC Bank.

[edit] Acquisitions

The bank has recently merged with Flag Bank, increasing its presence in Georgia. RBC continued to grow in the Southeast after acquiring 39 branches of AmSouth Bank in Alabama on March 9, 2007.

RBC expanded its presence in Alabama, Georgia, and Florida with its acquisition of Alabama National Bancorporation (ANB) is completed. US approval was given on February 5, 2008. On April 14, 51 branches re-opened as RBC Bank; All branches shall have converted or consolidated by June 20, 2008. ANB operated in three states through eleven different subsidiaries:

Alabama:

• First American Bank (Birmingham & Huntsville)
• Alabama Exchange Bank (Tuskegee)
• Bank of Dadeville (Dadeville)

Georgia:

• Georgia State Bank (Metro Atlanta)
• The Peachtree Bank (Metro Atlanta)

Florida:

• Indian River National Bank (Vero Beach)
• First Gulf Bank (Escambia County, FL & Baldwin County, AL)
• Florida Choice Bank (Metro Orlando)
• Community Bank of Naples (Naples)
• Cypress Coquina Bank (Ormond Beach)
• Millennium Bank (Gainesville & Newberry)

[edit] Controversies

[edit] Mortgage fraud

RBC Centura experienced fraud problems in 2004 related to mortgages that were made to fictitious people and/or inflated appraisals. The estimated loss was $29 million.^[2]

[edit] Dunmore Homes

In November of 2007, RBC Centura was involved in the "Dunmore Homes" project in Sacramento, California 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 in New York. The company filed for bankruptcy in Manhattan. After details of the sale became known to RBC Centura Bank, a major Dunmore Homes creditor, the bank sued on Nov. 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 to Yuba City. 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, it has secured claims against those projects. But the company says the value of a Fresno project is less than the outstanding loan balance. Nine major lenders, including RBC, are owed a combined total of $196 million on Dunmore Homes' 26 new-home communities, according to the builder.^[3]

[edit] References

1. ^ ^{a b} Frequently Asked Questions. RBC Centura Banks, Inc. Retrieved on 2008-04-11.
2. ^ Weisbecker, Lee. "RBC loan unit cites 'fraud' in $29M of debt", Triangle Business Journal, American City Business Journals, Inc, 2004-08-13, pp. 2. Retrieved on 2008-04-11. 
3. ^ Shaw, Michael. "Lender cries fraud over Dunmore Homes sale", Sacramento Business Journal, American City Business Journals, Inc, 2007-11-30, pp. 2. Retrieved on 2008-04-11. 

[edit] External links

• RBC Bank