PNC Bank, A The Pittsburgh-based bank expanded its footprint when it said it would acquire BBVA, a Houston-based US subsidiary of Spanish Bank. The $ 11.6 billion all-cash deal, announced in November, would push PNC to become the fifth-largest bank in the US by assets.
BBVA is located mostly in Texas, Alabama and Arizona and has 637 branches. PNC has more than 2,000 branches in 19 states in the Northeast, Midwest and Southeast. BBV’s takeover of PNC increases its reach in the South and Southwest and Texas is one of the fastest growing states in the US
The deal is expected to close during the summer of 2021, pending regulatory approval, says Christina Anderson, senior vice president and director of external communications for BBVA.
PNC will have offices and branches in 29 of the 30 largest US markets after the deal closes.
The deal is “to a large extent” in line with PNC’s strategy, as the bank has a presence primarily in the Mid-Atlantic and Midwest, with Fitch Ratings senior director, Bain Kay. Rumohar, New York-based ratings and analytic says. company.
What does a PNC-BBVA deal mean to customers?
Although customers should expect the federal regulators to approve the takeover and change some fees, interest rates and other benefits after the deal closes, banks will operate independently for an extended period. Customers can continue to use their debit cards for purchases, and automatic withdrawals, online banking, and paper checks can still be used to pay bills. The current account number is expected to remain the same.
PNC and BBVA will operate independently until the acquisition closes, says Marcie Zwiebel, senior vice president and director of corporate public relations for PNC Bank.
BBVA’s American customers will not experience any change in the meantime, and “Anderson requires no action from them”. After the deal is closed, BBVA accounts and branches will become PNC.
“After the acquisition closes, the two banks will continue to operate independently for some time,” she says. “Customers should expect to receive additional communications on what the two banks hope to integrate as PNC.”
How do PNC and BBVA accounts differ?
PNC Bank and BBVA offer different fees and benefits to their customers. Here’s a look at how they differ.
BBVA Offers the following facilities and fees:
- Extensive access to duty-free ATMs through the Allpoint network with no transaction for $ 5 per month, depending on the checking account.
- High-end mobile apps.
- At least the minimum amount for opening checks and savings accounts.
BBVA’s overdraft fee is $ 38 higher than many other banks and can be charged up to six times per day.
PNC Bank It offers options and fees:
- Competitive interest rate on savings in some areas.
- Variety of CD types.
But PNC only offers a lower interest rate on savings accounts, unless you live in areas eligible for high-yield savings, and its overdraft fee is $ 36, charged up to four times per day.
Is it time to consider changing banks?
The number of brick-and-mortar branches will expand for PNC and BBVA customers, giving them greater access to ATMs and in-person banking for loans and other products. However, it is unknown what will happen to fees for checking accounts and interest rates for savings accounts, high-yield savings accounts and deposit certificates, which consumers do not care to reach a physical branch , They may consider opening an account online-only bank.
Online banks charge less because their overhead is quite low, and they typically offer higher interest rates.