National City acquisition by PNC
Both banks began interstate expansion in the 1980s, with the two eventually competing in Cincinnati and Louisville by the end of the decade.
Although PNC would never enter the Cleveland market on its own before the National City deal, National City did enter Pittsburgh in late 1995 with its acquisition of Pittsburgh-based Integra Bank,[4] putting it in third in market share behind PNC and Mellon, and eventually second after Mellon sold off its retail banking division to RBS–owned Citizens Financial Group in 2001.
Although National City was otherwise healthy on paper, the mortgage business was dragging down profits into losses, with CEO Peter Raskind even fearing that the bank might fail.
Terms of the confidential agreement, entered into a month earlier with the Office of the Comptroller of the Currency (which regulates nationally chartered banks), were not known.
[8] On June 10, 2008, National City Corp. confirmed that it had reached agreements with regulators "regarding capital levels, risk-management practices and other aspects of its business."
Combined with Scotiabank's decision to once again not enter the U.S. market, National City began preliminary merger talks with U.S. Bancorp (U.S.
The following day, after National City was denied TARP funds by the U.S. government, they accepted PNC's offer at about $5.2 billion in stock.
U.S. Representative Dennis Kucinich of Cleveland unsuccessfully fought against the merger, arguing that National City's TARP funds application was never seriously considered, PNC actually took National City's own allotment of TARP funds in addition to its own, and the effects on the local economy.
[22] Under terms of the settlement, investors dropped their claims in return for the release of more than 400 pages of documents in Delaware State Court.
[26] First Niagara officially took over those branches on September 8 after the signs were changed over from National City during Labor Day Weekend.
[34] By the time Bank of America announced plans for an organic expansion into Pittsburgh in January 2018, PNC's market share in the area had slipped to 42.8%.
The National City name, as expected, lasted well into 2009 since it would take PNC some time to integrate the two banks together.
[38] The conversion of National City to PNC was completed in June 2010, in the following phases:[38] Despite becoming the largest bank in Ohio upon acquiring National City, PNC has since slipped to second–largest in the state behind Fifth Third Bank, and for several years was neck–and–neck with third place Huntington Bancshares for the second-place spot.
[47] By 2020, U.S. Bancorp (U.S. Bank) was Ohio's largest bank by deposits, having grown their deposits in the interim through organic growth while Fifth Third remained second, Huntington slipped to third, and PNC slipped all the way to sixth behind KeyCorp and JPMorgan Chase, a far cry from National City's heyday.
[49] The move allowed PNC to experience growth in Chicago, and was able to use the Florida footprint acquired from National City to expand in the Southern United States.
PNC ultimately paid back its TARP funds in full in February 2010 while the National City conversion was still underway.
However, it required the bank to sell its Global Investment Servicing division to BNY Mellon in order to have the funds to buy back its shares.
