Bank exchange

As North Carolina-based banks labor, out-of-state invaders take their place.
By Spencer Campbell
 

Pittsburgh-based PNC Financial Services Group Inc.’s $3.5 billion acquisition of Raleigh-based RBC Bank USA, which closed in March, was “driven by a confluence of need and opportunity,” says Ray Grace, acting commissioner of banks. RBC had lost millions for its parent, Royal Bank of Canada, and PNC is a strong, well-capitalized financial institution that was looking to expand into the Southeast. But it also furthers a budding but once-unthinkable trend: out-of-state banks grabbing a big share of the Tar Heel market at the expense of powerful in-state banks.

In 2001, North Carolina-based banks — led by Bank of America Corp. and First Union of Charlotte and Wachovia Corp. and Branch Banking & Trust Co. of Winston-Salem — had a stranglehold over their own territory, controlling more than 99% of Tar Heel deposits. Ten years later, they housed less than 80%. Some in-state institutions are weaker than ever. Wachovia needed an emergency buyer, BofA’s stock is in the basement, and others are buried under bad real-estate loans. That’s why Grace is cautiously optimistic about the invaders. “I’m not sure whether it’s good or bad. The phenomenon is fueled by North Carolina banks being vulnerable. But it’s obviously indicative of the interest banks have in our market. And we welcome the flow of capital.”

 

 

 

Out-of-state banks in North Carolina: June 30, 2001

Oklahoma: Fort Sill National Bank (Fort Sill)
Mississippi: SouthBank (Corinth) 
Alabama: SouthTrust Bank (Birmingham)
Virginia:  American National Bank and Trust Co. (Danville)
                 Community National Bank (South Boston)
                 Essex Savings Bank (Norfolk)
                 First Community Bank (Bluefield)
                 First National Bank (Rocky Mount)
                 Grayson National Bank (Independence)
                 Highlands Union Bank (Abingdon)
                 Mountain National Bank (Galax)
                 Patrick Henry National Bank (Bassett)
                 Peoples National Bank (Danville)
Indiana: Harrington Bank FSB (Richmond)
Tennessee: Greene County Bank (Greeneville)
                      Home Bank FSB (Ducktown)
South Carolina: Carolina First Bank (Greenville)
                             Coastal Federal Savings Bank (Myrtle Beach)
                             First Capital Bank (Bennettsville)
                             Peoples Federal Savings and Loan (Conway)

Out-of-state banks in North Carolina: June 30, 2011

California: Wells Fargo (San Francisco)
Oklahoma: Fort Sill National Bank (Fort Sill)
Texas: Woodforest National Bank (Houston)
Pennsylvania: PNC Bank (Pittsburgh)
Maine: TD Bank (Portland)
Ohio: Fifth Third Bank (Cincinnati)
Tennessee: Carter County Bank of Elizabethton (Elizabethton)
                                   First Tennessee Bank (Memphis)
                                   Peoples Bank of East Tennessee (Madisonville)
Virginia: American National Bank & Trust (Danville)
                Bank of Hampton Roads (Norfolk)
                Carter Bank & Trust (Martinsville)
                Citizens Community Bank (South Hill)
                First Community Bank (Bluefield)
                Grayson National Bank (Independence)
                Highlands Union Bank (Abingdon)
                Monarch Bank (Chesapeake)
                Towne Bank (Portsmouth)

South Carolina: First Capital Bank (Bennettsville)
                             First Federal Savings and Loan Association of Charleston (Charleston)
                             SCBT National Bank Association (Orangeburg)
Arkansas: Bank of the Ozarks (Little Rock)
Alabama: Regions Bank (Birmingham)
                  SouthBank (Huntsville)
Georgia: Bank of Atlanta (Atlanta)
                 SunTrust Bank (Atlanta)
                 United Community Bank (Blairsville)
Florida: Capital Bank (Miami)