{"id":28220,"date":"2020-11-29T08:11:03","date_gmt":"2020-11-29T08:11:03","guid":{"rendered":"https:\/\/www.ceo-na.com\/?p=28220"},"modified":"2020-11-27T20:12:28","modified_gmt":"2020-11-27T20:12:28","slug":"pnc-purchases-bbva-usa","status":"publish","type":"post","link":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/news\/pnc-purchases-bbva-usa\/","title":{"rendered":""},"content":{"rendered":"

PNC Financial Services Group, Inc. announces agreement to buy BBVA USA.<\/p>\n

<\/p>\n

PNC Media Room reported<\/a> that the\u00a0PNC Financial Services Group, Inc.\u00a0and the Spanish financial group, Banco Bilbao Vizcaya Argentaria, S.A. have signed a definitive agreement for PNC to acquire BBVA\u00a0USA<\/span>\u00a0Bancshares, Inc., including its U.S. banking subsidiary, BBVA\u00a0USA<\/span>, for a purchase price of\u00a0$11.6 billion<\/span>\u00a0to be funded with cash on hand in a fixed price structure.<\/p>\n

“Our acquisition of BBVA\u00a0USA<\/span>\u00a0will accelerate our growth trajectory and drive long-term shareholder value through a strategic deployment of the proceeds from the sale of our BlackRock investment,” said\u00a0William S. Demchak<\/span>, PNC’s chairman, president and chief executive officer. “This transaction is an opportunity to navigate our future from a position of strength, accelerating PNC’s national expansion strategy while drawing on our experience as a disciplined acquirer. We are excited to bring our industry-leading technology and innovative products and services to new markets and clients, leveraging our mutual commitment to building diverse and high performing teams and supporting the communities we serve.”<\/p>\n

“This is a very positive transaction for all sides. PNC has recognized the great value of our unique client franchise and of our great team in the U.S., who will be part of a leading financial services group in the country,” said BBVA Group Executive Chairman\u00a0Carlos Torres Vila<\/span>. “The deal enhances our already strong financial position. We will have ample flexibility to profitably deploy capital in our markets strengthening our long-term growth profile and supporting economies in the recovery phase, and to increase distributions to shareholders.”<\/p>\n

The acquisition adds approximately\u00a0$86 billion<\/span>\u00a0of deposits and\u00a0$66 billion<\/span>\u00a0of loans based on BBVA\u00a0USA’s<\/span>\u00a0Sept. 30, 2020<\/span>\u00a0balance sheet. Post-closing, the estimated allowance for credit losses to total loans for the combined entity is 2.85%, including reserves for the acquired loans from BBVA\u00a0USA<\/span>\u00a0of 3.85%.<\/p>\n

PNC expects to incur merger and integration costs of\u00a0$980 million<\/span>, inclusive of approximately\u00a0$250 million<\/span>\u00a0in write-offs of capitalized items, and achieve cost savings in excess of\u00a0$900 million<\/span>, or 35% of BBVA\u00a0USA’s<\/span>\u00a02022 estimated annual noninterest expense through operational and administrative efficiency improvements.<\/p>\n

The transaction, which has been approved by both companies’ boards of directors, is expected to close in mid-2021, subject to customary closing conditions, including regulatory approvals. Upon closing, PNC intends to merge BBVA\u00a0USA<\/span>\u00a0Bancshares into PNC with PNC continuing as the surviving entity. Post-closing, PNC intends to merge BBVA\u00a0USA<\/span>\u00a0into PNC Bank, N.A. and convert BBVA\u00a0USA<\/span>\u00a0customers to the PNC platform with BBVA\u00a0USA<\/span>\u00a0branches assuming the PNC Bank name. PNC is not acquiring BBVA Securities, Inc., Propel Venture Partners Fund I, L.P. and BBVA Processing Services, Inc.<\/p>\n","protected":false},"excerpt":{"rendered":"

PNC Financial Services Group, Inc. announces agreement to buy BBVA […]<\/p>\n","protected":false},"author":8,"featured_media":28221,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1338],"tags":[471,99,1385,4256],"class_list":["post-28220","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bbva","tag-ceo","tag-ceo-northam","tag-pnc-financial"],"_links":{"self":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/28220","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/comments?post=28220"}],"version-history":[{"count":2,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/28220\/revisions"}],"predecessor-version":[{"id":28223,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/28220\/revisions\/28223"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/media\/28221"}],"wp:attachment":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/media?parent=28220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/categories?post=28220"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/tags?post=28220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}