PNC Financial Services
PNC Financial Services
is an American corporation, providing a wide range of financial services. Its assets total $279 billion as of December 2008. The institution has 2.600 offices in nine states, around 6000 ATMs and works with companies, government organizations, and financial institutions. The company is the 5th largest bank, with $181.1 billion in deposits. Its portfolio includes retail, commercial and institutional banking
, BlackRock, and global investment servicing. The structure has recently added mortgage banking and asset management to its services.
PNC Financial Services’ predecessor was the Pittsburgh Trust and Savings Company, established in Pennsylvania in 1852. The institution obtained a charter under the National Banking Act and was renamed to First National Bank in 1863. The bank became Pittsburgh National Corporation in 1959, following a sequence of strategic mergers. The Philadelphia branch of the bank was also founded in the 19th century, under the name Provident National Corporation. The two merged in 1982, creating the present PNC Financial Corporation. PNC acquired more than ten other small banking institutions
, which expanded the reach of the company and added to its market share in the New York Metro area and Kentucky. PNC became 8th largest bank in terms of deposits in the US after buying out the Riggs National Corporation, Washington (in 2005), Mercantile Bancshares, Maryland (2007), Yardville National Bancorp, New Jersey (2007) and the Sterling Financial Corporation, Pennsylvania (2007). With the latter, PNC acquired branches in Maryland and Delaware as well.
In 2008, the bank doubled its size after purchasing National City Bank
(headquartered in Cleveland) for $5.2 billion in stocks. Thus, PNC became the fourth largest bank by branches in the US. At the same time, the bank sold 15% of its shares to the Treasury, within the framework of the notorious $700 billion bail-out plan. Under the deal, the stake has to be bought back by the bank within the course of ten years. National City’s acquisitions strengthened the position of PNC
in Cincinnati, Pittsburgh and Kentucky, as well as widened its network area to Florida. Actually, the strong combined presence of PNC and the former National City Bank in Pittsburgh created antitrust issues. Therefore, PNC had to sell off 50 branches in the area and 11 more in the Erie region. First Niagara Bank, headquartered in Buffalo, took over 57 of the branches in September 2009. The problem, however, persists and the institution will have to shut down other 14 branches till April, 2010. Currently, the market share of PNC in Pittsburgh is 46%.
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