Pnc Financial Services Group, Inc. (the) · NYSE:PNC
Pnc Financial Services Group, Inc. (the) — Merger or Acquisition (June 2011)
14 slides from Pnc Financial Services Group, Inc. (the)'s merger presentation, Jun 20, 2011
Slide 1: PNC Announces Agreement to Buy RBC Bank (USA)
Exhibit 99.2 * * * * * Investor Presentation * * PNC Announces Agreement to Buy * * RBC Bank (USA) * * June 20, 2011 * *
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This presentation contains forward-looking statements regarding our outlook or expectations with respect to the planned acquisition of RBC Bank (USA), the expected costs to be incurred in connection with the acquisition, RBC Bank (USA)’s fut
Slide 3: Strategic Rationale
Strategic Rationale Opportunity to deliver PNC’s products and services to new commercial, wealth management and retail customers Fairly priced market expansion into demographically attractive growth markets Demonstrated ability to successfully integrate and grow underperforming franchises RBC Bank (
Slide 4: Extends East Coast Branch Network into Faster Growing Markets
Extends East Coast Branch Network into Faster Growing Markets RBC Bank (USA) branches by state North Carolina 180 Florida 83 Alabama 78 Georgia 61 Virginia 13 South Carolina 9 Total 424 PNC branches RBC Bank (USA) branches Source: SNL Financial, as of June 2010. 4
Slide 5: Opportunity to Capture More Deposit Share in Demographically Attractive Markets
Opportunity to Capture More Deposit Share in Demographically Attractive Markets RBC Bank (USA) brings high growth and… …wealthy markets Proforma Projected 5-year growth¹ State² Branches Deposits( $bn) Rank³ California Population HH income New York PNC 1.2% 13.3% Florida 216 $8.0 10 Illinois 198 $15.
Slide 6: PNC's Proven Capabilities to Grow Retail Banking Relationships in Acquired Markets
PNC’s Proven Capabilities to Grow Retail Banking Relationships in Acquired Markets Greater Maryland/Washington, D.C. market Growth strategies growth Total DDA Households 483 497 Increase brand awareness 430 Introduce innovative products- Virtual 382 Wallet, University and Workplace Banking Increase
Slide 7: Demonstrated Ability to Grow C&IB and AMG in New Markets
Demonstrated Ability to Grow C&IB and AMG in New Markets and Cross-Sell Innovative Products Total market revenue growth¹ for C&IB and AMG Growth strategies Chicago $81 Leverage cross-sell opportunities $64 $64 $35 $14 $20 New clients up Expand PNC’s loan syndication 48% over YTD10² capabilities as a
Slide 8: Significant New Commercial Market Opportunity
Significant New Commercial Market Opportunity PNC’s Top 10 MSAs¹ RBC Bank (USA)’s Top 10 MSAs¹ # of Total Sales # of % of PNC’s Total Sales Businesses ($ billions) Businesses Top 10 ($ billions) Small Businesses 1,373,556 NA² 506,749 37% NA² Mid-Market 14,013 $435 3,922 28% $123 Corporate 6,687 $6,0
Slide 9: Compelling Transaction
Compelling Transaction Transaction Summary 1 Transaction total value $3.45 billion Internal rate of return 4 19%+ Accretion 4 End of year 2013 or sooner Compelling Financial Terms: 2 – Price to tangible book Discount to tangible book of $112 million; currently 97% 2 – Deposit premium (0.6%) Annual e
Slide 10: Value-Added Acquisition Positions PNC Well for the Future
Value-Added Acquisition Positions PNC Well for the Future PNC remains core funded with a proforma loan to deposit ratio of 82% Credit risk remains manageable given loan marks of 12.5% and demonstrated distressed loan management capabilities PNC remains well positioned regarding Basel III implementat
Slide 11: Summary
Summary Opportunity to deliver PNC’s products and services to new commercial, wealth management and retail customers Fairly priced market expansion into demographically attractive growth markets Demonstrated ability to successfully integrate and grow underperforming franchises RBC Bank (USA) has qua
Slide 12: Combined Balance Sheet
Combined Balance Sheet Appendix 1 ($ billions) PNC RBC Bank (USA) Proforma PNC ASSETS 3/31/2011 4/30/2011 3/31/2011 Investments 66.8 4.7 71.5 Loans, net 3 147.6 15.7 163.3 Other Assets 35.9 3.4 39.3 Intangible Assets, excluding MSRs 9.0 1.0 10.0 Total Assets 259.4 24.8 284.1 LIABILITIES Deposits 182
Slide 13: RBC Bank (USA) Loan Portfolio Assessment
RBC Bank (USA) Loan Portfolio Assessment Appendix Estimated ($ in millions) Balance as of Credit Mark Rate Mark Total Mark 2 Loan Category 4/30/2011 $ % $ % $ % Performing: Commercial: C&I 3,477 125 3.6% 35 1.0% 159 4.6% Owner Occupied 2,973 137 4.6% 1 0.0% 137 4.6% CRE & Construction 3,202 167 5.2%
Slide 14: Valuation Comparables Based on Recent Transactions
Valuation Comparables Based on Recent Transactions Appendix Announced Core Announce Deal Value Deposit 1 2 3 Buyer Target Date ($M) P/TBV P/ Adj. TBV Premium Valley National Bancorp State Bancorp Inc. 4/28/11 $259 216% 252% 11.7% Brookline Bancorp Inc. Bancorp Rhode Island Inc. 4/20/11 $234 201% NA
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