Can PNC Get Regional Bank M&A Moving?

For a sector that is still dealing with remarkable turbulence and challenges to old business models, there have been remarkably few acquisitions in the regional bank industry. Sure, there have been plenty of distressed deals, where a bank has failed (or is about to) and an opportunistic suitor snaps up branches and deposits without having to pay much at all, but not much has happened in the way of strategic moves and not among the larger banks.   

If an acquisition rumor about PNC Financial (NYSE:PNC) is accurate, though, that may be about to change and perhaps 2011 will be a year where there is more activity in the industry. After all, banks like PNC, U.S. Bank (NYSE:USB), Spain's Santander (NYSE:STD) and Canada's Toronto-Dominion (NYSE:TD) could all look to put capital to use this way.

The Rumor 
The South Florida Business Journal recently ran a story suggesting that Pittsburgh's PNC is looking to expand its presence in Florida and is considering acquiring either Regions Financial (NYSE:RF) or BankAtlantic (NYSE:BBX) to do so. While this particular rumor is new and fresh, it is something of a reheated story. Regions and BankAtlantic were always thought to be prime acquisition targets during the boom years, and even during the worst of crunch as both banks were seen to be very much at risk from bad loans. While PNC has not generally been the buyer most frequently tied to Regions, the idea of PNC buying either of these banks makes sense.


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