The transaction is expected to add $19bn in deposits, $16bn in loans to PNC as well as 426 branches located in Florida, North Carolina, Alabama and other Southeastern states.
In addition, PNC has also agreed to buy RBC’s credit-card assets for $165m.
The PNC may fund the transaction using a mix of cash and stock. It is expected to issue a stock offering of $1bn, if the regulators ask PNC to raise capital for the deal.
RBC entered the US market in 2001 with the $2.2bn purchase of North Carolina-based Centura Banks.
The transaction, which is subject to regulatory approval, is expected to close in the first quarter of the next year.
PNC has retail operations in 15 states and Washington DC, including more than 2,500 branches across the US.
