The FINANCIAL — The PNC Financial Services Group, Inc. (NYSE: PNC) on June 21 announced it has successfully completed the conversion of more than 6 million customers and 1,300 branches from National City Bank to PNC Bank.
"The overall branch conversion, which ranks among the four biggest in U.S. banking history, was completed without any major issues and finished six months ahead of schedule," PNC informs.
"We wanted a seamless transition for our customers and I believe we have achieved that goal based on the tremendous teamwork of our employees and our investments in products and services," said James E. Rohr, PNC's chairman and chief executive officer. "This is a historic accomplishment as we double the size of our franchise and create a powerful deposit franchise with significant opportunities to generate revenue growth and create value for our customers, employees, shareholders and communities."
Four Phases and Nine States
PNC, which acquired National City on Dec. 31, 2008, remains on track with its two-year plan for the overall integration. The branch conversion was completed in four phases during a seven-month period that involved millions of customers and more than 1,300 branches across nine states:
November 2009: 1.8 million customers and 240 branches were converted in western Pennsylvania (primarily Pittsburgh and Erie) along with Youngstown, Ohio, and the state of Florida.
February 2010: 1.1 million customers and 320 branches were converted in Kentucky, southeastern Indiana and southern Ohio (primarily Cincinnati, Dayton and Columbus).
April 2010: the largest phase involved 1.5 million customers and 420 branches in northern Ohio (primarily Cleveland, Akron and Toledo) and the state of Michigan.
June 2010: 1.6 million customers and 390 branches were converted in Indiana (primarily Indianapolis, Fort Wayne and South Bend) along with the states of Illinois, Missouri and Wisconsin.
This represents PNC's eighth acquisition in the past five years and extends the company's strong track record with successful integrations. Other details of the conversion and integration include:
Employee Training: Thousands of employees completed more than 5 million hours of training to ensure a smooth transition for customers.
Customer Communications: Outreach began 4-5 months prior to each conversion with details about the process and their accounts. More than 8 million pieces of mail were sent.
Green Approach: Consistent with PNC's green business practices, recycled paper was used in mailings and branch materials. Energy-efficient light fixtures were used in many of the 21,000 signs replaced with the "PNC" name. More than 200 tons of metal from inside branches (e.g., wall displays) were recycled and dry erase boards were donated to local charities.
Expense Reductions: PNC is on track to achieve its integration cost-savings goal of $1.5 billion by the end of 2010, ahead of what was previously anticipated.
Discussion about this post