National City Bank

PNC Financial scooped up National City in 2008 in an all-stock deal valued at $5.2 billion, the latest in what is widely expected to be a series of consolidations among the nation’s regional banks.

The deal will make PNC the fifth-largest bank in the United States, giving it more than $180 billion and 2,700 branches spread across the Midwest and Mid-Atlantic regions. But it will also inherit nearly $20 billion of losses on bad mortgages and other troubled loans, and it will bolster its presence in the Rust Belt just as the economy is worsening.

Automakers and other heavy manufacturers are bracing for thousands of layoffs, which could cause more consumers and corporations to default and will most likely slow new lending.

PNC said the deal represented an offer of $2.23 for each share of National City, or nearly 19 percent below the stock’s closing price on Thursday. That makes the acquisition a “take-under,” meaning the purchase price is below the market value of the target company.

National City Corporation (NYSE: NCC), headquartered in Cleveland, Ohio, is one of the nation's largest financial holding companies. The company operates through an extensive banking network primarily in Ohio, Florida, Illinois, Indiana, Kentucky, Michigan, Missouri, Pennsylvania and Wisconsin, and also serves customers in selected markets nationally. Its core businesses include corporate and retail banking, mortgage financing and servicing, consumer finance and asset management.