BBVA being acquired by PNC Bank

The long-standing local bank in the Canyon Lake Town Center has remained steadfast and open for decades, although the name on its sign has changed several times during its time there. The next change will show PNC Bank when BBVA is officially acquired in the third quarter of next year.

Pending regulatory approval, BBVA USA will be acquired by PNC Bank, a top 10 financial services company headquartered in Pittsburgh PA. Post-closing, PNC intends to merge BBVA USA into PNC Bank and convert BBVA USA customers to the PNC platform with BBVA USA branches assuming the PNC Bank name. The acquisition shouldn’t result in a disruption of services at Canyon Lake’s only financial institution.

“The period between today’s announcement and the close of the acquisition is expected to be anywhere from six to nine months or more,” Javier Rodríguez Soler, President and CEO of BBVA USA, said. “During that time, BBVA USA customers will continue to interact with the bank as they always have. In short, it’s business as usual for our customers which means that the retail branch, private banker or relationship manager you work with, will continue to be your primary point of contact.”

Bill Demchak, PNC’s Chairman, President and CEO, said the acquisition of BBVA USA will put the combined bank in the top five of US financial institutions and into 29 of the top 30 US markets.

“I am pleased to announce PNC’s agreement to acquire BBVA USA, a deal through which PNC will become a top five U.S. bank with a coast-to-coast national franchise,” he said. “I could not be more excited about this acquisition and the many opportunities it presents for our company and for our stakeholders. I also am incredibly grateful for our customers, communities, employees and shareholders, whose trust has enabled us to become who we are today.”

The Canyon Lake bank was a Hemet Federal Savings & Loan until it was acquired by Guaranty Bank in 1999. Ten years later, Guaranty was purchased by BBVA Compass Bank, a multinational bank headquartered in Madrid, Spain. The US division of the bank changed its name to BBVA USA in June of last year. Only the United States division was acquired by PNC Bank.

Due to legal regulatory restrictions, Canyon Lake Vice President/Branch Retail Executive Madianne Acock could not comment on the acquisition. BBVA USA president and CEO Javier, though, wanted to reassure its customers that they would be kept in the loop as the sale goes through.

“We understand changes like this can cause anxiety,” Javier said. “We want to assure you that BBVA USA and PNC are committed to working together throughout this process, and that we will provide ongoing, transparent and open communication so you know what to expect each step of the way. Thank you for your support and trust in BBVA USA. We value and appreciate your business and you have our commitment that we will walk through this process with you.”

The sale of BBVA USA to PNC was for $11.6 billion in cash.

“This is a very positive transaction for all sides. PNC has recognized the great value of our unique client franchise and of our great team in the U.S., who will be part of a leading financial services group in the country,” said BBVA Group executive chairman Carlos Torres Vila. “The deal enhances our already strong financial position. We will have ample flexibility to profitably deploy capital in our markets strengthening our long-term growth profile and supporting economies in the recovery phase, and to increase distributions to shareholders.”

In the U.S., BBVA is a Sunbelt-based bank with more than $100 billion in assets and 637 branches, with leading market shares in Texas, Alabama and Arizona. After the closing of the transaction, PNC will become the country’s fifth-largest bank by assets. The transaction excludes the broker dealer (BBVA Securities) and the branch in New York, through which BBVA will continue to provide corporate and investment banking services to its large corporate and institutional clients.

“We are excited to bring our industry-leading technology and innovative products and services to new markets and clients,” Bill, PNC’s chairman, said. “We will leverage our mutual commitment to building diverse and high performing teams and supporting the communities we serve.”

BBVA USA customers will continue to be provided services by BBVA USA until the second half of 2021, Bill said. The transaction, which has been approved by both companies’ boards of directors, is expected to close in mid-2021, subject to customary closing conditions, including regulatory approvals.

“PNC has a long history of supporting the communities it serves,” Bill said. “The company has earned an ‘Outstanding’ rating under the Community Reinvestment Act since those examinations began more than 40 years ago. Furthermore, PNC has long supported full inclusivity of all people and groups, and remains committed to strengthening and enriching the lives of the communities where it operates.”