Oct. 2--RBC Bank CEO Scott Custer, who made the bank one of downtown Raleigh's anchor tenants and expanded its operations into new territories, is retiring after five years at the helm.

Custer, 52, said Thursday that he will retire on Nov. 1 after more than two decades at the bank. He will be replaced as CEO by his boss, Jim Westlake, the head of international banking and insurance for RBC Bank's corporate parent, Royal Bank of Canada, as well as the current chairman of RBC Bank. Westlake will retain those roles as well.

Westlake's appointment is seen by some analysts as a sign that Royal Bank has big plans for its U.S. business -- and that executives in Toronto want to exert greater control over the former Centura Bank, a lender with deep roots in Eastern North Carolina.

Both Westlake and Custer said in interviews that RBC Bank, which has been losing money in recent quarters, is poised to perform well when the economy turns around after a restructuring that included job cuts and a management overhaul.

Custer said that made it a propitious time for him to depart and move on to Act II of his career.

"It's a good time for me to come up for air and see what else is out there," Custer said. He added that he has no definite plans but intends to stay in Raleigh.

Westlake, a native of Kingston, Ontario, will split his time between offices in Toronto and Raleigh. He is a former head of the Canadian retail banking operations of Royal Bank, Canada's largest bank.

Westlake said that RBC Bank remains firmly committed to Raleigh and that he plans to establish a residence here.

The Canadian business performed well under Westlake's leadership, and he was a logical choice to succeed Custer, said Robert Sedran, an analyst for National Bank Financial in Toronto.

"Jim was already responsible for the business," Sedran said. "It's not like he is a stranger to this business."

Custer engineered a turnaround of RBC Bank after he was named CEO in October 2004. He also steered the relocation of its headquarters from Rocky Mount to a skyscraper in downtown Raleigh.

While Custer was CEO, RBC Bank expanded its branch network from 270 to more than 430 today, thanks largely to acquisitions.

But like many large regional banks, RBC Bank stumbled because of problem loans. On Custer's watch, the bank made acquisitions that expanded its presence in Florida and Georgia, where the recession has hit real estate markets hard.

RBC Bank lost $110.1 million in the second quarter, which ended June 30, according to data filed with the Federal Deposit Insurance Corp.