PNC Bank plans to buy U.S. operations of BBVA for $11.6B

Spanish-owned banking group BBVA has reached a deal with PNC Financial Services Group to sell its U.S. branch, BBVA USA Bancshares for $11.6 billion. Here’s how this major acquisition will affect Birmingham.

A $11.6B Acquisition

On Monday morning, November 16th, Pittsburgh-based PNC Financial Services Group announced their plans to acquire the U.S. operations of BBVA. Banco Bilbao Vizcaya Argentaria (BBVA), based out of Madrid and Bilbao, Spain, is one of the largest financial institutions in the world.

Once the deal closes in mid-2021, PNC Bank will absorb BBVA USA Bancshares and BBVA USA, a subsidiary headquartered in Birmingham that operates 637 branches throughout the Southeast and Northwest.

According to Reuters, the $11.6B deal is the second-largest U.S. banking acquisition since the 2008 financial crisis. Once complete, PNC Bank will have a presence in 29 of the 30 largest markets in the U.S.

Uniting Two of Birmingham’s Biggest Players

PNC Bank’s acquisition of BBVA USA Bancshares will have a large impact on the Birmingham banking scene. According to BhamWiki, BBVA bought out the Birmingham-based Compass Bancshares in 2007, a company which can be traced back to the incorporation of Central Bank and Trust Company in 1963.

As of today, BBVA is the second-largest bank in Birmingham at 21.36% market share, trailing behind Regions Bank (29.55% market share). Once PNC acquires BBVA USA Bancshares, it will jump from the seventh- to the fifth-largest bank in the United States.

“Over the past 20 years, we’ve seen Birmingham transition from a city with the headquarters for a number of top banks, to a city with a large number of small—but strong—banks. So, instead of Birmingham being a big-bank city, we have a lot of medium- and small-sized banks here now.”

Sara Robicheaux, B.A. Monaghan Professor of Business, Birmingham-Southern College

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