For Immediate Release
March 30, 2001
For more information: Steven J. Goldstein
Chief Financial Officer
Centura Banks, Inc.
(252) 454-8356
sgoldstein@centura.com
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CENTURA BANKS, INC. INCREASES DIVIDEND AND RESCINDS SHARE
REPURCHASE PROGRAM
ROCKY MOUNT, N.C., March 30, 2001- Centura Banks, Inc. (NYSE: CBC) today
announced that its board of directors has declared a second-quarter 2001 cash
dividend of $.36 per share and officially rescinded the company's share
repurchase program as part of its agreement to be acquired by Royal Bank of
Canada (NYSE, TE: RY).
The dividend, which is payable May 4, 2001, to shareholders of record April 24,
2001, represents a 5.9 percent increase over the dividend paid for the second
quarter of 2000 and marks the 34th consecutive year in which Centura has
increased its dividend.
At the same time, the board officially rescinded Centura's 1.5-million-share
repurchase program announced in September of 2000. The company, which
repurchased approximately 552,000 shares under the program, hasn't been active
in the market since December-2000, and was precluded from repurchasing its own
stock as part of its agreement to be acquired by Royal Bank of Canada.
About Centura
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Centura Banks, Inc., a $12 billion-asset financial services company based in
North Carolina, provides a complete line of banking, investment, insurance,
leasing and asset management services to individuals and businesses in North
Carolina, South Carolina and Virginia. Centura's broad range of financial
solutions is provided through more than 240 full-service financial offices and
Centura Highway, the bank's multifaceted customer access system that includes
telephone banking, an extensive ATM network, PC banking, online bill payment and
the bank's suite of Internet products and services. In January, the company
announced a definitive agreement to be acquired by Royal Bank of Canada in a
transaction in which each Centura share will be exchanged for 1.684 shares of
Royal Bank. The transaction is expected to close by mid-summer. Additional
information may be found on Centura's Website at www.centura.com.
Safe Harbor
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Statements made in this press release, other than those containing historical
information, are forward-looking statements made pursuant to the safe-harbor
provisions of the Private Securities Litigation Act of 1995. These include
statements about Centura, including descriptions of plans or objectives of its
management for future operations, products or services, and forecasts of its
revenues, earnings or other measures of economic performance. Such statements
reflect current views, but are based on assumptions and are subject to risks,
uncertainties and other factors that may cause results to differ materially from
those set forth in such statements. Those factors include, but are not limited
to, the following: (i) expected cost savings from completed mergers may not be
fully realized or costs or difficulties related to the integration of the
businesses of Centura and merged institutions may be greater than expected; (ii)
customer and deposit attrition, or revenue loss, following completed mergers may
be greater than expected; (iii) competitive pressure in the banking industry may
increase significantly; (iv) changes in the interest rate environment may reduce
margins; (v) general economic conditions, either nationally or regionally, may
be less favorable than expected, resulting in, among other things, credit
quality deterioration and the possible impairment of collectibility of loans;
(vi) the impact of changes in monetary and fiscal policies, laws, rules and
regulations; (vii) the impact of the Gramm-Leach-Bliley Act of 1999; (viii)
changes in business conditions and inflation; and (ix) other risks and factors
identified in Centura's filings with the Securities and Exchange Commission and
other regulatory bodies.
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