PNC Financial Services Group, the regional bank that is acquiring Raleigh-based RBC Bank, saw profits decline 40 percent in the fourth-quarter, the company reported today.

The Pittsburgh-based bank, which ranks as the nation's sixth-largest bank based on assets, reported net income of $493 million, or 85 cents per share.

That was well below the $1.49 cents per share that was the average of 26 analysts that cover the company, according to Bloomberg News.

PNC reported net income of $820 million, or $1.50 per share, during the same period a year ago.

The company took a $240 million charge in the fourth quarter for foreclosure-related activities.

For the year, net income was $3.1 billion, or $5.64 per share.

CEO Jim Rohr said in a statement that the bank had a solid year given the challenging environment of low interest rates, increased regulation and overall sluggish economic growth.
 

The Centennial Authority, the owner and developer of the RBC Center, has granted initial approval for the arena in West Raleigh to be renamed the PNC Arena.

The new naming rights agreement is expected to take effect in March, after Pittsburgh-based PNC Financial Services Group completes its $3.45 billion acquisition of Raleigh-based RBC Bank.

The naming rights were included in the PNC-RBC deal. The arena is home to the Carolina Hurricanes and N.C. State University's basketball team.

RBC's naming rights deal expires in 2022.

PNC is used to having its name plastered on sports venues. The Pittsburgh Pirates baseball team plays in PNC Park, and PNC Field, outside of Scranton, is home to a New York Yankees minor league team.

Any costs associated with renaming the arena are the responsibility of the holder of the naming rights.

Lou Cestello, head of PNC's Southeast region, said the arena will provide a boost to the bank's name recognition in the Triangle and the state.

The 19,000-seat arena opened in 1999. It averages 1.5 million guests and 150 events per year.

On a conference call with analysts last week, Highwoods Properties CEO Ed Fritsch was asked what impact the pending acquisition of RBC Bank by PNC Financial Group would have on the Raleigh real estate investment trust's downtown office tower.

RBC occupies 131,000 square feet of space in its namesake tower on Fayetteville Street. The company signed a 20-year lease with Highwoods when the building opened in 2008.

The law firm Poyner Spruill, which does some work for RBC, also occupies about 75,000 square feet in the building.

Fritsch said Highwoods officials have not yet met with Jim Rohr, PNC's CEO.

But he said Poyner Spruill has indicated it doesn't expect the merger to cause it to reevaluate its space needs.

"They don't see any material impact to the way that they need and consume space," he said. "And in fact they continue to add head count to their firm."

As for PNC, Fritsch said PNC's public statements about the merger have indicated they like the presence of the RBC Tower. He also noted that PNC, which is based in Pittsburgh, does not have any existing infrastructure in the Southeast.

"There's no doubt that there's significant signage opportunities that are on display now," Fritsch said. "He [Rohr] has mentioned that that's an attraction to them."