The name "PNC" is derived from the initials of both of the bank's two predecessor companies: Pittsburgh National Corporation and Provident National Corporation, which merged in 1983. PNC Mortgage (formerly National City Mortgage) is credited with funding the first mortgage in the United States and has offices across the country.
History
1970s-era Pittsburgh National Bank logo, used until the 1982 merger to form PNC Bank
PNC Financial Services traces its history to the Pittsburgh Trust and Savings Company which was founded in Pittsburgh, Pennsylvania, on April 10, 1845.[5][6] Due to the long recovery from the Great Fire of Pittsburgh, Pittsburgh Trust and Savings was not fully operational until January 28, 1852.[7] It originally opened offices at Liberty Avenue and 12th Street. The bank was renamed The Pittsburgh Trust Company in 1853.[8] In 1858, the company located its corporate offices to the corner of Fifth Avenue and Wood Street in Pittsburgh, where they remain to this day. The bank changed its name to First National Bank of Pittsburgh in 1863 after it became the first bank in the country to apply for a national charter as part of that year's National Banking Act.[5] It received the 48th charter on August 5, 1863, with other later banks receiving charters sooner due to paperwork problems and the fact that the bank was already in business.[5][8]
In 1946, First National merged with Peoples-Pittsburgh Trust Company – with whom it had worked closely since the 1930s – to form Peoples First National Bank & Trust. In 1959, Peoples First merged with Fidelity Trust Company to form Pittsburgh National Bank. At this time, the bank adopted the first version of its present logo – a stylized triangle representing the city's Golden Triangle.[9][10]
Another branch of the current bank, the Philadelphia–based Provident National Corporation, dates back to 1865.[11]
In 1982, Pittsburgh National Corporation and Provident National Corporation, both with PNC as their abbreviations, merged into a new entity named PNC Financial Corporation. It was the largest bank merger in American history at the time and created a company with $10.3 billion in assets.[12][13] Between 1991 and 1996, PNC purchased more than ten smaller banks and financial institutions, including the $30 billion dollar merger of Midlantic Bank of Edison New Jersey in 1996, that at the time, was one-third the size of PNC. That broadened its market base from Kentucky to the New York metropolitan area.[citation needed]
In 2000, the company adopted a new brand image and changed its name to PNC Financial Services Group.[20]
In 2001, PNC sold the original PNC Mortgage to Washington Mutual due to volatility in the market.[21]
In 2004, PNC acquired United National Bancorp based in Bridgewater, New Jersey, for $321 million in cash and 6.6 million shares of its common stock.[22]
In August 2006, PNC got back into the credit card business by marketing and issuing credit cards under the MasterCard brand in partnership with U.S. Bancorp (U.S. Bank) .[26] After the National City merger (see below) in 2008, the U.S. Bancorp (U.S. Bank) products were converted to PNC Bank products.
On March 2, 2007, PNC acquired Maryland-based Mercantile Bankshares, making PNC the eighth largest bank in the United States by deposits.[24][27][28]
On October 26, 2007, PNC acquired Yardville National Bancorp, a small commercial bank centered in central New Jersey and eastern Pennsylvania.[24][29]
On April 4, 2008, PNC acquired Sterling Financial Corporation, a commercial and consumer bank with accounts and branches in central Pennsylvania, northeastern Maryland and Delaware.[24][31]
On August 14, 2009, PNC took over Dwelling House Savings & Loan and its only branch location in Pittsburgh's Hill District after Dwelling House failed and was placed in receivership by the Federal Deposit Insurance Corporation (FDIC).[37] Dwelling House had been known in Pittsburgh to provide loans to low–income African Americans that other banks would deny. The branch was closed and accounts were transferred to the existing PNC branch in the Hill District.[38]
In July 2010, PNC sold its Global Investment Servicing (GIS) subsidiary to The Bank of New York Mellon to repay funds from the Troubled Asset Relief Program, which had been used for the National City acquisition (see above) in 2008.[39] GIS, established in 1973 and with 4,700 employees, was the second–largest full–service mutual fund transfer agent in the U.S and the second–largest full–service accounting and administration provider to U.S. mutual funds. GIS serviced $1.9 trillion in total assets and 58 million shareholder accounts. It was known as PFPC until July 2008.[40]
In December 2011, PNC acquired 27 branches in the northern Atlanta suburbs with $240 million in deposits and $42 million in book value from Flagstar Bank.[43][44][45]
In 2018, the company acquired Fortis Advisors, which provides post–merger shareholder services.[59][60] The company ranked one hundred sixty fifth on the 2018 Fortune 500 list of the largest United States corporations by revenue.[61]
In 2018, PNC began opening "Solution Centers", a hybrid between traditional bank branches and ATM–only services, mostly serving new markets. Through this method, PNC expanded its retail footprint into Boston, Denver, Kansas City, Nashville, and several markets in Texas including Austin, Dallas, Houston, and San Antonio.[4] Two of PNC's "Big Four" competitors, Bank of America and Chase Bank, have both also been expanding into new markets through this method, including into PNC's home market of Pittsburgh.
In August 2019, PNC launched a Fintech incubator subsidiary called "numo" that functions as an internal startup. Its first development included indi, an instant payment and mobile banking company for gig workers.[62]
In May 2020, the company sold its stake in BlackRock.[63]
On June 1, 2021, PNC acquired BBVA USA for $11.6 billion in cash.[64] The acquisition significantly boosted its presence in Colorado and Texas, complemented its presence in Alabama and Florida, and introduced the bank to the Arizona, California, and New Mexico markets.[65]
In 2021, PNC originated nearly 95,000 mortgages worth $34.8 billion.[66] This is a 23% increase vs prior year and stands as their highest origination volume to date.
Legal issues
Overcharging of Black and Hispanic borrowers by National City
In December 2013, the Department of Justice and the Consumer Financial Protection Bureau announced that they had reached an agreement with National City Bank to resolve allegations that the bank had charged Black and Hispanic borrowers higher prices for mortgages between 2002 and 2008, before the acquisition by PNC. Regulators claimed that National City had violated the Fair Housing Act and Equal Credit Opportunity Act by charging more than 75,000 borrowers higher loan rates based on their race or ethnicity rather than their risk level. National City's lack of pricing guidelines resulted in black borrowers being charged an average of $159 more in extra upfront fees or higher interest than white borrowers. Black borrowers also paid an average of $228 more annually over the life of the loan than white borrowers. Hispanics paid $125 more upfront and $154 more annually than white borrowers. Under the terms of the settlement, PNC was required to pay victims $35 million.[67]
Retailer breach forced PNC to reissue customer cards
In March 2006, PNC and other large banks were forced to reissue hundreds of debit cards to customers after card numbers were disclosed by a breach at an unspecified retailer.[68]
Lawsuit from Military Channel
Also in March 2006, PNC Bank was sued by Paul Bariteau, an investor in the Military Channel. Bariteau claimed PNC let the chairman of the Military Channel make unauthorized withdrawals of millions of dollars from the company's account for personal use.[69]
In June 2003, PNC Bank agreed to pay $115 million to settle federal securities fraud charges after one of its subsidiaries fraudulently transferred $762 million in bad loans and other venture capital investments to an AIG entity in order to conceal them from investors.[70]
Overtime claim by loan officers
In 2017, PNC agreed to pay $16 million to settle claims of overtime wages by loan officers under the Fair Labor Standards Act.[71]
National Prearranged Services fraud
According to a lawsuit, funds entrusted to National Prearranged Services (NPS), a St. Louis–based company that sold prepaid funerals, were diverted and embezzled. PNC Bank is the successor to Allegiant Bank, which served as a trustee for NPS from 1998 to 2004. In 2015, a jury ordered PNC to pay $391 million.[72] In 2017, a federal judge overturned the decision.[73]
Municipal bonds disclosure violations
In 2015, PNC was one of 22 companies that violated disclosure requirements for municipal bonds by failing to divulge that the issuers had filed late financial reports. It was fined $500,000.[74]
On Mar 2, 2023, Donald Trump Jr., cofounder of news aggregator MxM News, tweeted that PNC had abruptly cancelled all financial services for MxM without explanation.[77] Trump and cofounder Taylor Budowich alleged that PNC disapproved of Trump’s political leanings since no reason was given for the closure. PNC claimed it was a “good faith error” and reopened the account.[78]
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