PNC Financial Services Group, Inc. is set to close the $11.6 billion acquisition of BBVA USA Bancshares, Inc., including its Birmingham-headquartered banking subsidiary BBVA USA, on June 1.
This comes after PNC on Friday announced the official receipt of regulatory approval from the board of governors of the Federal Reserve System and the Office of the Comptroller of the Currency to complete this previously announced acquisition. Regulatory approval has also been granted from the banking departments of the States of Alabama and Texas.
The acquisition now only awaits satisfaction of customary closing conditions. Upon closing, PNC will be the fifth-largest U.S. commercial bank with over $560 billion in assets and a presence in 29 of the 30 largest markets in the United States.
Post-closing, PNC intends to merge BBVA USA into PNC Bank, N.A. and convert BBVA USA customers to the PNC platform with BBVA USA branches assuming the PNC Bank name.
After closing, PNC will provide BBVA USA customers comprehensive information relating to the anticipated conversion of their accounts in October 2021. Until conversion, customers will continue be served through their respective BBVA USA and PNC branches, website and mobile apps.
“We are pleased to have received regulatory approval of our acquisition that will accelerate our growth trajectory and drive long-term shareholder value,” stated William S. Demchak, PNC chairman, president and CEO. “With common cultures and values and a shared commitment to our customers, employees and communities, we look forward to bringing PNC’s industry-leading technology and innovative products and services to new markets and clients.”
It is still unclear exactly what the acquisition will mean for the Birmingham financial scene, although PNC has voiced that its Magic City presence will increase post-closing.
BBVA in 2007 bought Birmingham-headquartered Compass Bancshares, whose roots in the state went back to the founding of the Central Bank & Trust Co. in 1964. After that acquisition, the company subsequently changed its name to BBVA Compass and later to BBVA USA.
PNC CFO Rob Reilly previously stated, “We’ve been in Birmingham since the National City acquisition back in 2009, and everything about the city we’ve been exposed to, we really like.”
“Birmingham’s a fantastic city, very dynamic and it’s going to be a very meaningful part of this new PNC as we look to execute our strategy and grow and frankly, compete more equally with the large national banks,” he added. “It’s an important part of PNC, and following this transaction, it’s going to become an extremely important part.”
Sean Ross is the editor of Yellowhammer News. You can follow him on Twitter @sean_yhn