RBC Centura Bank and AmSouth Bancorporation yesterday announced that 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, CEO 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.

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 US$1.5 billion in loans and US$2 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.

RBC Centura Bank is a wholly owned subsidiary of Royal Bank of Canada.