A major acquisition by Pittsburgh-based PNC Financial Services Group Inc. (NYSE: PNC) is set to shake up the U.S. banking landscape.
PNC Financial, which operates PNC Bank branches and is in the midst of an expansion in Arizona, has inked an agreement to acquire Houston-based BBVA USA Bancshares and its Birmingham, Alabama-based subsidiary, BBVA USA, for $11.6 billion in cash. BBVA Bancshares is owned by Spain-based Banco Bilbao Vizcaya Argentaria SA (NYSE: BBVA).
BBVA USA Bancshares has $104 billion in assets and operates more than 600 branches across the Sun Belt. While PNC already has a strong presence in the Southeast, the deal will significantly expand its presence in the Southwest and Texas. The combined bank will have a presence in 29 of the 30 largest markets in the U.S. It will be the fifth-largest bank in the U.S. based on total assets.
When the deal closes, it will vault PNC Bank's brand into the top 10 among banks with the largest local deposits in the Valley, considering BBVA is ranked No. 6 with Valley deposits of $3.25 billion, according to Business Journal research.