Company Profile
PNC
Company History
With roots in commercial banking that date back to the 1800s, PNC has grown to be one of the leading financial services organizations in the country. And we're consistently working to find opportunities to better serve our customers, our shareholders and the communities in which we work.
The many institutions that have come together to form PNC date back to the very beginnings of commercial banking:
Pittsburgh National Corporation was established as the Pittsburgh Trust and Savings Company in 1852, making it the oldest bank in Pittsburgh. Within months, the company moved its offices to Wood Street, one door from the corner of Fifth Avenue, and in 1858 it acquired the corner lot. The company has been doing business at the corner of Fifth Avenue and Wood Street ever since.
The bank was the first to apply for a charter under the National Banking Act of 1863, and soon became the First National Bank of Pittsburgh.
In 1946, the bank joined with Peoples-Pittsburgh Trust Company to form Peoples First National Bank and Trust Company.
And in 1959, Fidelity Trust Company merged with Peoples First, which, in turn, merged with First National. A new bank was born - Pittsburgh National Bank - with a new symbol that expressed the industrial and commercial strength of Pittsburgh's Golden Triangle.
Provident National Corporation dates back to the mid-19th century. One of its predecessors, Provident Life and Trust Company, was established in 1865 by Quakers as an insurance company and became known informally as "the Quaker bank."
In 1922, the Provident Life and Trust Company split into two independent entities: Provident Mutual Life Insurance Company and Provident Trust Company.
In 1957, Provident Trust Company of Philadelphia and Provident Tradesmens Bank and Trust Company merged, creating Provident National Bank.
New Opportunities
In 1982, Pennsylvania changed its laws to allow statewide banking. Pittsburgh National and Provident National were the first two banks to act on the new legislation, and came together in what was at the time the largest bank merger in U.S. history. Taking the shared initials of their holding companies, they created a new entity called PNC Financial Corp.
A series of mergers with local banks followed and, in 1986, PNC took the major step of merging with an out-of-state bank, Citizens Fidelity Corporation of Louisville, Kentucky.
Shortly after, PNC acquired The Central Bancorporation of Cincinnati and the Bank of Delaware Corporation, which traces its roots back to 1795.
Consolidation and Growth
In 1990, PNC made the strategic decision to move from separate technology platforms, operated by each individual bank, to a single common platform. That allowed us to offer customers a common set of products and services, wherever they were located. And we shifted our organizational focus from geography to lines of business.
Another series of acquisitions began in 1991, when PNC purchased First Federal Savings and Loan Association of Pittsburgh. The addition of First Federal made PNC both the largest bank and the largest bank holding company in Pittsburgh.
Between 1991 and 1996, PNC acquired nine financial institutions that broadened its customer base to include northern Pennsylvania, Philadelphia, Cincinnati, northern Kentucky and Pittsburgh.
In 1995, PNC achieved its longtime goal of entering New Jersey by merging with Midlantic Corporation in a $3 billion deal that instantly gave it a major presence in the southern New Jersey/Philadelphia market.
A National Presence
PNC's growing wealth management business was bolstered by two bank acquisitions in the '90s: The Massachusetts Company, Boston, which was the oldest trust company in the country, dating from 1818, and which counted John Quincy Adams, Daniel Webster and Henry Wadsworth Longfellow among its clients; and Indian River Federal Savings Bank of Vero Beach, Fla., which added private banking capabilities to PNC's existing Florida trust business.
PNC's wealth management group became known as PNC Advisors in 1999, and now consists of the former PNC Private Bank; PNC's Institutional Trust and Investment Group; and Hawthorn, a wealth management firm serving particularly affluent clients.
BlackRock became a part of PNC's asset management business during the mid-1990s, and is currently one of the largest investment managers in the U.S.
In 1993, PNC acquired Sears Mortgage Company. PNC added the capabilities of Sears Mortgage to its existing PNC Mortgage operation to create one of the nation's largest mortgage originators and service providers at the time. Due to heavy consolidation in the industry, PNC made a strategic decision to exit the consumer mortgage business in 2000, selling PNC Mortgage to Washington Mutual Home Loans, Inc.
In 1999, PNC's steady transformation into a diversified company with national reach was further strengthened with the acquisition of First Data Investor Services Group (ISG), a leading provider of services to mutual funds and other investment vehicles. The addition of ISG solidified PNC's Global Investment Servicing (formerly known as PFPC Worldwide) entity as a premier provider of processing, technology and business solutions to the global investment industry.
In 2003, PNC acquired United National Bancorp. This acquisition strategically expanded our banking business in the growing and appealing markets of central New Jersey and the Lehigh Valley of Eastern Pennsylvania.
In 2005, PNC made a number of strategic acquisitions in growth areas, which included:
PNC acquired Riggs National Corporation. PNC gained entry into the Greater Washington area that includes Washington, D.C., Maryland and Virginia - one the nation's most appealing financial services markets and the fifth-most affluent metropolitan regions in the U.S.
Harris Williams & Co., a leading mergers and acquisitions advisor to middle market companies and private equity firms, became part of the PNC Corporate & Institutional Banking business.
BlackRock acquired SSRM Holdings Inc., the holding company of State Street Research Management Company & SSR Realty Advisors Inc., from MetLife. This transaction expanded the scale and scope of BlackRock's mutual fund products and distribution capabilities as well as strengthened them as a global leader in fixed income assets.
In 2006, BlackRock Financial Management acquired Merrill Lynch's investment management business creating one of the top 10 investment management companies in the world with assets under management more than $1 trillion. PNC will continue to own 44.5 million shares representing an ownership interest of approximately 35 percent and Merrill Lynch will now have a 49 percent ownership interest. The transaction closed on October 2, 2006.
PNC continues its expansion into growth areas through strategic business acquisitions, at the same time, the company is focused on a disciplined capital management strategy that includes:
Completing the acquisition of Mercantile Bankshares Corporation on March 2, 2007. This transaction significantly expanded PNC's presence in the Mid-Atlantic region, adding an additional 240 offices in the District of Columbia, Maryland, Delaware, Virginia and Southeastern Pennsylvania.
Acquiring ARCS Commercial Mortgage, the largest independent multifamily lender in the country and the leading Fannie Mae DUS lender. This transaction closed on July 2, 2007.
On June 7, 2007, PNC announced it signed a definitive agreement to acquire Hamilton, N.J.-based Yardville National Bancorp, a commerical and consumer bank with $3 billion in assets, $2 billion in deposits and 33 branches in central New Jersey and eastern Pennsylvania. This transaction closed on March 11, 2008.
On July 19, 2007, PNC announced it signed a definitive agreement to acquire Lancaster, Pa.-based Sterling Financial Corporation, a diversified financial services company with $3.3 billion in assets and 67 branches in Pennsylvania, Maryland and Delaware. This transaction closed on April 4, 2008, and conversion is expected to occur in the third quarter 2008.
Continuing the transformation of PNC's Global Investment Servicing (formerly known as PFPC Worldwide) business model, in addition to its processing capabilities, Global Investment Servicing is increasingly a provider of information services to the global investment industry through its acquisitions of Albridge Solutions Inc. (transaction closed on Dec. 7, 2007), a provider of portfolio accounting and enterprise wealth management services, and Coates Analytics Group LP (transaction closed on Dec. 10, 2007), a provider of Web-based analytics tools.
On March 31, 2008, PNC completed the definitive agreement to sell J.J.B. Hilliard, W.L. Lyons, Inc., a full-service brokerage and financial services provider headquartered in Louisville, Ky., to Bowling Green, Ky.-based Houchens Industries, Inc.
On Oct. 24, 2008, PNC announced it signed a definitive agreement to acquire National City Corporation. The transaction closed on Dec. 31, 2008 and conversion of National City branches will begin in the second half of 2009.
Notable Products / Brands
PNC Bank, PNC Global Investment Servicing, National City, Midland Loan Services, ARCS Commercial Mortgage, Harris Williams
Notable Accomplishments / Recognition
• “BusinessWeek 50” top performing companies (2009)
• Most Admired Companies, Fortune magazine (2009)
• One of America’s Most Shareholder-Friendly Companies, Institutional Investor magazine (2009)
• Harris Williams named Middle Market Investment Bank of the Year, IDD magazine (2008)
• Small Business Lender of the Year, Export-Import Bank of the United States (2008)
• 100 Best Companies for Working Mothers, Working Mother (2008)
• Top 50 Companies for Executive Women, National Association for Female Executives (2009)
• Top 125 Companies for Employee Training, Training magazine (2009)
• BusinessWeek Best Places to Launch a Career (2008)
• CIO 100 for Technology Excellence, CIO magazine (2007)
• Technology Innovator in Financial Services, InformationWeek magazine (2008)
• Global Investment Servicing Product Innovation – Fund Operations Awards, Source Media (2008)
• Sustainable Cities Award to PNC for eco-friendly business practices, Urban Land Institute and Financial Times (2008)
• Committee Encouraging Corporate Philanthropy (CECP) Large Company Excellence Award to Jim Rohr and PNC (2007)
• Sesame Workshop Corporate Honoree – Jim Rohr, along with co-honoree former First Lady Laura Bush, for PNC’s Grow Up Great Early Education Initiative (2007)
• Outstanding overall CRA rating, Office of the Comptroller of the Currency (2006)
Benefits
PNC offers competitive salaries and comprehensive benefits including medical, dental, life, disability, long-term care, tuition reimbursement, free checking, stock purchase, pension and highly ranked 401(k).