RBC Centura Banks Inc., a unit of Royal Bank of Canada, is paying US$1.6 billion in cash and stock for Birmingham-based Alabama National BanCorporation, the parent of 11 smaller U.S. banks.

The banks and other affiliated businesses being acquired are in Alabama, Florida and Georgia, extending Centura’s reach in the U.S. Southeast, Royal Bank says.

Under the agreement, shareholders of ANB will receive US$80 per share payable in cash, RBC shares or a combination of each, valuing the deal at approximately US$1.6 billion, with the total transaction consideration consisting one half of cash and one half of RBC shares.

The deal is subject to customary closing conditions, including approval by U.S. and Canadian regulators and by ANB shareholders. It is scheduled to close in early 2008, is expected to make a significant contribution to RBC Centura’s revenue growth in the near term and be accretive to RBC earnings in 2009, the bank says.

“By adding 45 locations in Alabama, 45 locations in Florida and 13 locations in Georgia, the acquisition of ANB is a logical step for RBC Centura to gain market share in the Southeast,” said Scott Custer, chairman and chief executive officer of RBC Centura, in a release.

Under the agreement, RBC Centura will acquire ANB, which includes 11 bank subsidiaries with 103 banking centers, eight mortgage/loan offices and 124 ATMs. As of June 30, 2007, ANB had assets of US$7.9 billion, deposit balances of US$5.8 billion and loans of US$5.7 billion. Upon completion of the transaction, RBC Centura will surpass US$33 billion in assets and will grow to 85 locations in Alabama, 89 locations in Florida and 68 in Georgia.