RBC Centura To Buy Georgia Bank In $456 Million Deal
Posted August 9, 2006
RALEIGH, N.C. — RBC Centura is expanding its southeastern footprint, buying a Georgia-based bank in a deal worth $456 million.
RBC Centura, a subsidiary of Royal Bank of Canada that is based in Raleigh, said Wednesday it would pay $25.50 per share for Flag Financial Corporation and its Flag Bank subsidiary.
Flag Bank operates 17 branches and has 370 employees in metro Atlanta and western Georgia. It has deposits of some $1.35 billion and loans totaling some $1.25 billion.
The deal is expected to close before the end of the year.
"The combined operations of RBC Centura and Flag Bank represent a strong strategic, cultural, and economic fit," said Scott Custer, chief executive officer of RBC Centura, in a statement. "Flag Bank's presence in Georgia combined with its distinct business banking capability are ideally aligned with RBC Centura's strategic focus to become the bank for business, business owners and professionals." RBC Centura already operates 30 banks in Georgia. Most of those are in the metro Atlanta area.
J. Thomas Wiley, Jr., the CEO of Flag Bank, will lead the combined operation as Georgia State President of RBC Centura.