PNC Acquires National City Corp.
- Oct 24, 2008
Pittsburgh–The PNC Financial Services Group Inc. will acquire National City Corp. for approximately $5.2 billion in PNC stock. An additional $384 million in cash is payable to certain warrant holders.PNC was one of the top national commercial/multifamily servicers by volume in MBA’s mid-year rankings this year. PNC ARCS, which was acquired by the PNC Financial Services Group in 2007, offers Fannie Mae, Freddie Mac, FHA and Capital Markets loans for all commercial property types. It has been among the Top five Fannie Mae DUS lenders for over a decade and is known for its expertise in multifamily financing.PNC plans to issue to the U.S. Treasury $7.7 billion of preferred stock and related warrants under the TARP Capital Purchase Program subject to standard closing requirements. The U.S. Treasury Department approval of PNC’s participation enables PNC to further strengthen its capital position, resulting in an estimated pro forma Tier 1 capital ratio for the combined company of approximately 10 percent.”The acquisition of National City will increase our core deposit base to $180 billion, making PNC the fifth largest U.S. bank by deposits,” says James E. Rohr, chairman and CEO of PNC. “At a time when core funding is key, we see our deposit strength as an important success factor. Upon closing the transaction, we will implement our successful business model and execute our strategies for managing risk, achieving cost efficiencies and growing high-quality revenue streams. “We believe this strategic combination will continue PNC’s efforts to build capital strength and shareholder value.”Upon closing the transaction, Raskind will be appointed a PNC vice chairman, and one National City director will join the board of the combined company.