The PNC Bank currently operates over 1100 branch offices and nearly 4000 ATM’s, and is said to be the third largest bank off-premise ATM provider in the country.
The PNC Bank is a subsidiary of PNC Financial Services Inc., which operates as a diversified financial services company. PNC Financial Services’ main businesses include retail banking, corporate and institutional banking, asset management, and global fund processing services. Its headquarters are in Pittsburgh, Pennsylvania and it serves customers in the states of Pennsylvania, New Jersey, Washington, DC, Maryland, Virginia, Ohio, Kentucky and Delaware.
History of PNC Bank
PNC Financial Services originates from the Pittsburgh Trust and Savings Company and was opened by steel chiefs James Laughlin and B.F. Jones in 1852. The Pittsburgh National Bank was established in 1959 as a result of a series of mergers involving the Pittsburgh Trust and Savings Company. PNC Financial’s other forerunner was the Provident National Bank, headquartered in Philadelphia, known originally as the Tradesmens National Bank of Philadelphia in the mid-19th century. In 1982, PNC Financial Corporation was formed from the merger of the Pittsburgh National Bank and the Provident National Bank.
PNC’s Expansion in the 1990s
In 1991 PNC went through a restructuring programme, reflecting PNC’s desire to diversify its holdings, and decided to concentrate on the business areas corporate banking, retail banking, investment and trust management, and investment banking. Between 1991 and 1996 the acquisition of banks and financial institutions played towards PNC’s rapid expansion that broadened its customer base from Kentucky to the Greater New York metro. In 1992, all of PNC’s banks and affiliated companies took on the name PNC Bank and the following year PNC Financial Corporation became PNC Bank Corp.
In 1993, PNC acquired the Massachusetts Company and also the Sears Mortgage Banking Group, a major home mortgage lender for $328 million. Adding Sears Mortgage to its existing PNC Mortgage operation created one of the largest mortgage providers at that time. In 1994, the purchase of BlackRock Financial Management for $240 million in cash increased PNC’s assets under management to $75 billion. PNC’s today partially owned, publicly traded BlackRock Subsidiary is one of the U.S.’s largest publicly traded asset management firms. The same year PNC went on to purchase First Eastern Corp. of Wilkes-Barre, Pennsylvania, for $330 million.
In 1995, PNC purchased 84 southern and central New Jersey branches from Chemical Banking Corp. for $504. The same year the bank announced that it would acquire Midlantic Corp. of Edison, New Jersey, the third largest bank in New Jersey in a $3 million deal. This resulted in giving PNC a major presence in the Southern New Jersey and Philadelphia market.
In the late 1990s the company decided to go through a restructuring programme again to tackle less profitable operations this included closing nine branches and selling 16 branches in Pennsylvania to First Western Bancorp Inc. It was also to sell off its credit card business totaling 3.3 million accounts to MBNA Corp. PNC went on to purchase First Data Investor Services Group for $1.1 billion, resulting in its subsidiary PFPC Worldwide (now PNC Global Investment Servicing) becoming the second largest full-service mutual fund transfer agent in the U.S.
PNC and the 21st Century
In 2000, PNC Bank Corp. became The PNC Financial Services Group showing its dedication to its diversified services.
PNC went on to acquire Washington, D.C. based Riggs National Corporation (2005), Maryland based Mercantile Bankshares (2007), Yardville National Bancorp predominantly in central New Jersey and eastern Pennsylvania (2007), and Sterling Financial Corporation predominantly in central Pennsylvania, northeastern Maryland and Delaware (2007). PNC had become the 8th largest bank by deposits in the United States as a result.
On October 24, 2008 PNC announced that it is to acquire National City Bank based in Cleveland, Ohio when complete PNC will become the 5th largest bank by deposits in the U.S. and fourth largest by branches. PNC had just sold 15% of its stake to the United States Treasury as part of the $700 billion bailout plan. The bank expects to buy back its stake within five years, five years ahead of the United States Treasury repayment requirements. The National City acquisition will also make PNC the largest bank in Pennsylvania and create a greater presence in the Midwest as well as entering the Florida market.
PNC Bank is one of the principal subsidiaries of PNC Financial Services Group Inc. It has nearly 800 branches in Delaware, District of Columbia, Florida, Virginia, Kentucky, New Jersey, Ohio, Maryland and Pennsylvania offering a wide range of services from individual and small businesses to corporations and government entities.