PNC Financial Services Group plans to acquire 27 bank branches in metro Atlanta from Flagstar Bank.
The deal, announced Tuesday and expected to close in December, would bring the PNC name to retail branches in metro Atlanta earlier than expected.
Just last month, Pittsburgh-based PNC said it planned to acquire the U.S. retail operations of Royal Bank of Canada, including Raleigh N.C.-based RBC (USA)’s operations in metro Atlanta. The $3.45 billion deal is expected to close in March.
In the latest deal, PNC said it will buy 21 branches and lease six others from Michigan-based Flagstar, in locations mostly north of Atlanta.
PNC will assume about $240 million in deposits but no loans in the deal. The branch locations and fixed assets were acquired for about $42 million, PNC said, with no premium paid for the deposit accounts.
Customer accounts and branches will be converted to PNC upon the closing of the deal.
"This transaction provides PNC the opportunity to acquire branches that complement our strategic plan for the Atlanta region and reflect our intention to become a competitor there," Joseph C. Guyaux, president of PNC and head of retail banking, said in a news release.
Upon the completion of the deals, PNC would replace RBC (USA) as the seventh-largest bank in metro Atlanta by deposits.
PNC, which would become the fifth-largest bank in the U.S. with its acquisition of RBC’s U.S. unit, is the latest national name to join Atlanta’s banking scene, which since the financial crisis started has seen Wells Fargo absorb Wachovia and JPMorgan Chase acquire the remnants of the failed Washington Mutual.
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