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PNC completes purchase of RBC, jobs picture unclear

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TWC News: PNC completes purchase of RBC, jobs picture unclear
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RALEIGH -- PNC completed its nearly $3.5 billion purchase of RBC on Friday, giving the Pittsburgh-based corporation strong roots in the Southeast.

But in terms of total jobs, it may be months before we know the initial loss created by the deal in North Carolina.

As Gov. Bev Perdue pointed out last year, a new player in the state's banking industry could eventually yield job gains.

"We've seen what happened with Wells Fargo and Wachovia,” Perdue told News 14 Carolina in June. “And we've seen that their numbers of employees have actually grown. They've surpassed where they were when Wachovia was acquired."

"I think overall, it will be very positive,” said Derrick Minor, with the Downtown Raleigh Alliance.

Minor said PNC has a strong philanthropic record, which could lead to a greater investment in downtown.

"Just having a partner like that, that's willing to invest in the market that they're in, just has huge benefits for downtown," Minor said.

He added that PNC helps diversify downtown's corporate population.

Across the street from what's now the PNC Tower, is Progress Energy's current headquarters, which is soon-to-be the home of Raleigh-based open source software giant Red Hat.

"Red Hat's average employee age is 28,” Minor said. “That's the type of employee that wants to spend time in downtown. Many have already indicated that they want to live in close proximity to downtown."

With the RBC purchase, PNC now has a major footprint in 19 states, and is the nation's 12th largest bank, with about $280 billion in assets.

It offers a full scale of products and services, including retail and corporate banking, asset and wealth management, and residential mortgage banking.

The company now employs about 55,000 people.

Corporate officials declined to answer questions about how many of those would be based in North Carolina, but previous Commerce Department filings showed that about 600 RBC employees would lose their jobs between locations in Raleigh and Rocky Mount.

PNC goes from having virtually no presence in the state to being one of the biggest players in banking. The company is the fifth-largest bank in terms of market share in North Carolina, behind Bank of America, Wells Fargo, BB&T, and First Citizens.

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