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http://money.cnn.com/2008/10/24/news/companies/bank_stocks/?postversion=2008102412PNC to buy National City Pittsburgh-based PNC to acquire struggling regional bank for $5.6 billion and will get government capital injection; bank stocks still get crushed Friday morning By David Ellis, CNNMoney.com staff writer Last Updated: October 24, 2008: 12:43 PM ET NEW YORK (CNNMoney.com) -- PNC announced Friday it would acquire regional bank National City in a deal worth about $5.6 billion. The sale, which values National City at $2.23 per share, would create the nation's fifth-largest U.S. bank with $180 billion in deposits. PNC is exchanging $5.2 billion in stock and paying an additional $384 million in cash for National City. "We believe this strategic combination will continue PNC's efforts to build capital strength and shareholder value," said James Rohr, PNC's chairman and CEO in a statement. Making the announcement before Friday's opening bell, PNC said it would also get a capital injection from the government by selling $7.7 billion worth of preferred stock and related warrants as part of a federal program aimed at propping up the nation's banking system. "We are pleased the Treasury selected us," Rohr said in a conference call with investors, adding that it won government approval late Thursday. The two firms said the combined company would be headquartered in PNC's hometown of Pittsburgh, while the merger would broaden PNC's footprint in other key parts of the upper Midwest such as Indiana, Michigan and National City's home state of Ohio. The deal, which is expected to close by year end, concludes what has been a painful period for National City. Shares of Cleveland-based National City have been hit hard over the past year as investors speculated about the bank's health due to its exposure to the deteriorating U.S. mortgage market. Earlier this week, National City reported a $729 million third-quarter loss and detailed plans to eliminate 4,000 positions, or 14% of its workforce, over the next three years. PNC said Friday that it estimated it will write downnearly 18% of National City's loan portfolio going forward. That's significantly larger than the loss forecasts that National City executives provided just days earlier. More deals ahead? The merger represents the latest shakeup in the U.S. banking industry. Over the past two months, major institutions such as Lehman Brothers and Washington Mutual have failed, while others, including Merrill Lynch and Wachovia, have rushed into the arms of suitors in order to survive. It is widely believed that there will be more bank deals in the months ahead. Some analysts believe that more banks will try and tap the government's investment program to get capital on the cheap and use some of that money to buy weaker rivals. But for now, some of the nation's largest banks, like JPMorgan Chase and Wells Fargo, may be done shopping for now, said Stuart Gunn, a director at the Chicago-based management consulting firm Bridge Strategy Group. That's because these banks will soon come up against government limits regarding how much of the nation's deposits they can own. Gunn said that some smaller regional banks may need to merge with others in order to survive, however. Still, Friday's trading session was quite painful for many banks, as well as the broader market, due to global recession fears. Other than PNC (PNC, Fortune 500), whoseshares gained more than 4% Friday on the news, many bank stocks were lower, includingNational City (NCC, Fortune 500)which plummeted about 22%. Shares across the rest of the sector and the broader market were sharply lower amid fears of a global recession. The stocks of major banks, including Citigroup (C, Fortune 500) and Bank of America (BAC, Fortune 500), slumped 5% and 8% in midday trading. Investment banks Goldman Sachs (GS, Fortune 500) and Morgan Stanley (MS, Fortune 500) fell nearly 7% each. And even the stocks of seemingly well-positioned banks such asWells Fargo (WFC, Fortune 500)andJPMorgan Chase (JPM, Fortune 500)dipped Friday morning. They did fare better than their peers though, falling nearly 2% and 6% respectively. The Dow Jones industrial average and S&P 500 each fell more than 5% in midday trading Friday while the Nasdaq composite was 2% lower. To top of page First Published: October 24, 2008: 9:06 AM ET
![[Linked Image from i45.tinypic.com]](http://i45.tinypic.com/adhq2o.gif)
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Such a shame. Cleveland just keeps getting smoked on companies being sold or leaving the city.
My mom has worked for the bank for my whole life, the last 15 or so she worked for the executives closely. This whole thing has clearly made me hate the Plain Dealer more, as they had a huge agenda in this one. The boo birds that go on there and rant about the idiocy of the execs are pretty much WRONG. No one in their right mind accused them of wrong doing back in 2004 or so when business was thriving.
A lot of people are going to lose jobs. No matter how this is sliced, it's bad for the city of Cleveland.
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PNC is getting Nat City at an incredible bargain. Look at this chart of Nat City:  The stock is down today, but buying the entire bank for 2.23/sh is just incredibly low. I mean, the entire bank for 2.23/sh... Too bad for downtown Cleveland as one it's biggest employers is about to watch the HQ get shipped off to PNC. Oh yeah... PNC = Pittsburgh National Corporation That's going to sting a few around here.
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We're already second rate to Pittsburgh in footbal, now they buy one of our banks...I'll shoot myself if the Pirates end up better than the Tribe in 2009.
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Legend
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Yep....lot's of office space is going to go empty and be shuttered up.
If everybody had like minds, we would never learn. GM Strong ![[Linked Image]](http://www.dawgtalkers.net/uploads/small-gator-chomp.gif)
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Legend
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Quote:
We're already second rate to Pittsburgh in footbal, now they buy one of our banks...I'll shoot myself if the Pirates end up better than the Tribe in 2009.
I think hanging yourself is more dramatic...and there is no clean-up left for your family. 
If everybody had like minds, we would never learn. GM Strong
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We're already second rate to Pittsburgh in footbal, now they buy one of our banks...I'll shoot myself if the Pirates end up better than the Tribe in 2009.
I think hanging yourself is more dramatic...and there is no clean-up left for your family.
Despite the fact that I'm an Eagle Scout, I sucked at making knots, so no noose for this guy.
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Legend
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If everybody had like minds, we would never learn. GM Strong
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Rookie
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Such a shame. Cleveland just keeps getting smoked on companies being sold or leaving the city.
agreed, this sucks for cleveland.
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My mom has worked for the bank for my whole life, the last 15 or so she worked for the executives closely. This whole thing has clearly made me hate the Plain Dealer more, as they had a huge agenda in this one. The boo birds that go on there and rant about the idiocy of the execs are pretty much WRONG. No one in their right mind accused them of wrong doing back in 2004 or so when business was thriving.
wait, are you really defending the executives who ran this company into the ground and destroyed the stock price in such a way that a purchase of the company was even possible? are you really defending the executives who made such terrible loans that they need to be written down an additional 18% after the sale? that sounds a lot like trying to defend the executives of lehman or wamu by saying that nobody complained a few years back when they were making money off of all these risky loans and complex securities...well look where it's gotten everyone. worldwide financial crisis, in part helped along by decisions made by executives like these who made risky loans to people who couldn't afford them in the first place. let's not put the blame here on the plain dealer, that's just ridiculous to be honest.
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A lot of people are going to lose jobs. No matter how this is sliced, it's bad for the city of Cleveland.
no argument there
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Legend
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Peen, always there with a helping hand or a good suggestion.. I like that. 
yebat' Putin
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I'm certainly not trying to one of those guys, but Nat City wasn't the biggest loser on the subprime mortgages. It was a risky investment, but profitable at one point. That's the risk of business man. I didn't see any one claiming that back in 2004.
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NCB lost a bundle on paper it held from the days it owned First Franklin,, a subprime lender.. I wonder if that had anthing to do with thier demise
#GMSTRONG
“Everyone is entitled to his own opinion, but not to his own facts.”
Daniel Patrick Moynahan
"Alternative facts hurt us all. Think before you blindly believe."
Damanshot
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All Pro
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I was a member of PNC once, run away, fast. They started charging me for my savings account out of the blue with no notice and also started charging me for taking money out of my account. Then they would not let me close my account. I ended up taking my money out at an ATM and left them $1.25
"Change ownership of the team, the true change we can believe in." - I made this in 2008 
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Haven't heard of a bank doing that, but I will say I'm glad I'm with my local bank.......maybe 7 or 8 branches total. If you call, a real live person answers!!!! Plus, she puts you through to the person you want to talk to - imagine that!!!
As they are now saying "We are a local bank that is here to stay".
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well look where it's gotten everyone. worldwide financial crisis, in part helped along by decisions made by executives like these who made risky loans to people who couldn't afford them in the first place.
You really do need to educate yourself a bit rather just blame banking executives for shoddy banking practices.
In the years leading into the Clinton Administration, Redlining was a big word. Basically it was areas banks wouldn't make loans because the demographics played out in a way that most of the people inside the "red lines" on the map, were bad risks.
Through Federal policy, banks were forced in to making loans they otherwise wouldn't have made....one of the buzz lines at the time was everybody deserves a part of the American Dream, and that means owning your own home. I know I had to hear President Clinton say "More people now own homes than at any time in our nations history" at least a few hundred times.
Now I am not saying bankers didn't make their fair share of mistakes along the way, but Federally mandated changes to the loan process played a very big part in the problem....probably the biggest part...
Just trying to help you here so in the future you have some idea about what you are talking about.
If everybody had like minds, we would never learn. GM Strong
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Yep....lot's of office space is going to go empty and be shuttered up.
My aunt works for National City (in cleveland) and she didn't seem that unhappy about PNC's buy, at least that's what my mom said tonight. She makes a lot of money and has Browns season tickets, so she's gotta be somewhat high up there.
But yeah, that's just the news I got, so may be not that many people will be losing jobs.
UCONN HUSKIES 2014 Champions of Basketball
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I hope so man, but any time that happens, there are a multitude of services that are duplicated and can easily be absorbed in to one operation or the other.
The fact PNC grew it's book in so far as deposits, loans, etc, it doesn't have to double it's workforce...people like tellers and branch managers don't have much to worry about...but the folks behind the scenes are on thin ice.
If everybody had like minds, we would never learn. GM Strong
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I hope so man, but any time that happens, there are a multitude of services that are duplicated and can easily be absorbed in to one operation or the other.
The fact PNC grew it's book in so far as deposits, loans, etc, it doesn't have to double it's workforce...people like tellers and branch managers don't have much to worry about...but the folks behind the scenes are on thin ice.
Exactly. That's why it's a perfect purchase for them. Eliminate the double HQ jobs, keep the branches that are not close to another PNC bank and there you go. Considering there are little/none in Ohio, they will get a huge presence here real quick.
And for the price they paid, smart business move IMO.
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Yep....lot's of office space is going to go empty and be shuttered up.
Which leaves options and office space for new banks to start up or other smaller local based banks like Home Savings and Loans (based out of Youngstown) to move North.
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Yes, I'm sure there will be plenty of new banks starting up in these solid economic times.... (end sarcasm)
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Yes, I'm sure there will be plenty of new banks starting up in these solid economic times.... (end sarcasm)
When I was out with my wife and her boss and coworkers, they were talking about this exact same thing. Some think this is the best time to start one up. They were also talking about when banks merge that it is easier for smaller and newer banks to move into empty vacated space. I was just adding my 2 cents based on their conversation. Im no expert on the subject and they may know a little more than me and you on the subject. Well, maybe not you of course
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I have a sick feeling that pretty soon we will have "BANK". That's it ...... they will have all merged into one single entity.
Micah 6:8; He has shown you, O mortal, what is good. And what does the Lord require of you? To act justly and to love mercy, and to walk humbly with your God.
John 14:19 Jesus said: Because I live, you also will live.
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... they will have all merged into one single entity.
...controlled by the Government.
Browns is the Browns
... there goes Joe Thomas, the best there ever was in this game.
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... they will have all merged into one single entity.
...controlled by the Government.
I hope not, although we are moving closer and closer to a gov't controlled society.
Wait... that's called something... LOL.
Hopefully the 'free' market will prevail, but who knows at this point. The gov't seems to be on one end of the pendulum - extreme right or extreme left - never in the middle. First, we get an overly 'free' market and now we are swinging to a 'anything but free' market...
Too hard to find a nice middle ground apparently.
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I have a sick feeling that pretty soon we will have "BANK". That's it ...... they will have all merged into one single entity.
Wealthspread National Bank....."Let us decide how much money you've got".
And into the forest I go, to lose my mind and find my soul.
- John Muir
#GMSTRONG
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I'm sickened by the thought of this because I can see it coming. We, THE PEOPLE, aren't going to have many choices to make before long since the stupid government will be making them all for us.
#gmstrong #gmlapdance
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Wealthspread National Bank....."Let us decide how much money you've got".
As much as I thought this was funny  , the sad reality is that we might be heading in that direction  
#gmstrong
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Forums DawgTalk Tailgate Forum PNC to buy National City
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