News Release Details
Financial Press Release
PNC Completes First Phase of National City Conversion
PITTSBURGH, Nov. 16 /PRNewswire-FirstCall/ -- The PNC Financial Services Group, Inc. (NYSE: PNC) today announced it has successfully completed the conversion of 1.8 million customers and 240 branches from National City Bank to PNC Bank, with three additional conversion phases scheduled in early 2010.
The first phase was comprised of customers throughout western Pennsylvania (primarily Pittsburgh and Erie) along with Youngstown, Ohio, and the state of Florida. The branch locations opened as PNC Bank as scheduled on Monday, Nov. 9, after the weekend conversion activities were completed smoothly and minor issues for individual customers were resolved quickly.
"We wanted a seamless transition for our customers and I believe we have achieved that goal based on the teamwork of our employees and the investments being made," said Thomas K. Whitford, PNC vice chairman and co-leader of the National City integration. "The tremendous leverage we expected from this transaction is beginning to benefit customers and have a positive effect on our performance."
PNC also announced the dates and regions for the remaining phases of the conversion, which involves an additional three million customers and 1,100 branch locations, as follows:
- February 2010: state of Kentucky, southeastern Indiana, southern Ohio (including Cincinnati, Dayton and Columbus).
- April 2010: northern Ohio (including Cleveland, Akron and Toledo) and the state of Michigan.
- June 2010: remainder of Indiana along with the states of Illinois, Missouri and Wisconsin.
With eight conversions in the past five years, PNC has extensive experience and a strong track record with successful integrations, said Shelley Seifert, co-leader of the integration. Communications to customers begin 4-5 months before each conversion and are already under way for the second and third phases. The acquisition makes PNC the nation's fifth largest bank based on deposits and branches.
Integration Progress Report
PNC, which acquired National City on Dec. 31, 2008, remains on track with its two-year integration plan. Other accomplishments include:
- Strong Performance: The acquisition of National City was accretive to PNC's year-to-date earnings through the Third Quarter, ending Sept. 30, and is expected to be accretive for the full year.
- PNC Mortgage: The former National City Mortgage was rebranded as PNC Mortgage on Nov. 7. As one of the nation's top 10 residential mortgage originators and servicers, PNC provides a wide range of loans for first-time home buyers, those looking to refinance and other borrowers.
- Bank Charters: As part of the integration of the two banks, the charter of National City Bank was merged with and into PNC Bank, N.A. Customers in the remaining phases will continue to see the trade name of National City until their conversion dates. No other action is needed by customers.
- Expense Reductions: PNC also is on track to achieve its integration cost-savings goal. On an annualized basis, the company has already secured $660 million in cost savings against the two-year goal expected to exceed $1.2 billion.
- Charitable Giving: PNC and National City are expected to exceed $50 million in charitable contributions and community sponsorships by year-end 2009. This reflects PNC's strong corporate citizenship and commitment to build upon National City's legacy of outstanding community support.
The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation's largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.
CONTACTS: MEDIA: Brian E. Goerke (412) 762-4550 firstname.lastname@example.org INVESTORS: William H. Callihan (412) 762-8257 email@example.com
SOURCE: The PNC Financial Services Group, Inc.
Web site: http://www.pnc.com/