A nearly $12 billion deal changed the course of BBVA bank in a major way. The deal led to a rebranding of the lender’s branches and also impacted its customers. Many people still wonder what happened to BBVA bank.
From time to time, there's a consolidation in the U.S. banking industry for various reasons. It could be rival banks pairing to cut costs and grow quickly. In some cases, one bank decides to leave certain markets and another moves in to take over its operations. BBVA bank has transformed through consolidation moves.
What happened to BBVA bank?
In November 2020, PNC Bank agreed to acquire BBVA USA, a subsidiary of Spanish banking giant BBVA. PNC offered to pay $11.6 billion in cash for the subsidiary. The deal closed in June 2021. Spain’s BBVA got the money and largely retreated from the U.S. market, while PNC took over BBVA USA operations.
The work of converting BBVA branches and customers over to PNC began. In October 2021, PNC completed the rebranding of BBVA branches to the PNC Bank name. It also transferred BBVA customers to its platform.
Is BBVA a real bank?
BBVA continued to open new branches while waiting to be converted to PNC. It operates 600 branches and served 2.6 million customers by the time PNC bought it. BBVA operated in more than half a dozen states, including Alabama, Texas, and California. The bank serves individual and commercial clients.
BBVA bank has a long history of operations in the U.S. In the 1960s, it operated as Central Bank and Trust Company. The bank took on the Central Bancshares name at some point and later rebranded to Compass Bancshares. The name changed to BBVA Compass following its 2007 acquisition by Spain’s BBVA. The bank rebranded to BBVA USA in 2019.
What happened to BBVA bank after conversion to PNC?
The conversion of BBVA to PNC involved rebranding branches and also issuing PNC branded credit and debit cards to BBVA customers. However, the transfer didn’t go smoothly for everyone. Some BBVA customers encountered problems after the conversion. For example, customers reported that they couldn’t access their money after their accounts moved over to PNC. Others faced card activation challenges.
Despite the transition challenges, PNC thinks that former BBVA customers will be able to access products they couldn’t obtain from BBVA. The acquisition of BBVA USA also transformed PNC into the fifth-largest bank in the U.S. by assets.
PNC is counting on the acquisition to help it cut costs. PNC was able to complete the BBVA acquisition ahead of schedule. In connection with the BBVA deal, PNC launched a program where it will provide nearly $90 billion in loans and investment to enhance economic opportunities in low-income communities.