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PNC pledges $5M more to National City charities
Thursday, November 13, 2008

PNC Financial Services Group yesterday promised to boost National City Corp.'s charitable donations next year after the planned takeover of the hobbled Cleveland-based bank.

Pittsburgh-based PNC, which is expected to complete the federally assisted acquisition Dec. 31, said it was committing $28 million to National City's annual charitable and community sponsorships, up from the roughly $23 million National City will give in 2008.

"Support for most charitable and community organizations that received contributions from National City in 2008 is expected to be set at similar levels in 2009, with the additional $5 million funding new or expanded initiatives," PNC said.

PNC did not say what would happen beyond 2009 but seemed to suggest that organizations that currently receive donations from both banks could see a decrease in funding after next year.

"In regions where PNC and National City both contribute to a particular nonprofit, the combined organization will work to support the nonprofit's mission during the transition," PNC said in a statement.

PNC's and National City's operations overlap the most in Pittsburgh, Erie, Cincinnati and Louisville, Ky.

Any funding levels beyond 2009 have not been discussed, said Eva Blum, senior vice president and director of community affairs, who oversees the PNC Foundation.

"We're really going to use 2009 to gather details and talk to each other and nonprofits and community leaders," Ms. Blum said. "We need to work on the best way to operate in those areas as a combined organization."

Both banks "have the philosophy that supporting our communities is the right thing to do and also is good business, and we would continue with that philosophy," she said.

This year, PNC will donate about $32 million to charitable and community groups, she said.

PNC received $7.7 billion in federal bailout money to buy National City in a stock transaction valued at $5.6 billion when it was announced last month. National City, decimated by problem loans, was seeking a buyer to thwart bankruptcy, PNC said in a government filing this week.

PNC could reap a multibillion-dollar tax benefit from the purchase because of a recent change in how the federal tax code is applied in cases where a strong bank buys a weaker one. PNC has said it could not yet put a dollar value on the benefit, but said it was "substantially less" than published estimates of $5 billion.

After the merger closes, PNC expects to take 23 months to complete the integration of the two banks. Until then, PNC plans to operate with both the PNC Bank and the National City Bank brands.

PNC also said it would replace National City's employee matching charitable gift program with its own, boosting the maximum match for former National City employees' contributions to $2,500, up from $1,000.

Patricia Sabatini can be reached at psabatini@post-gazette.com or 412-263-3066.
First published on November 13, 2008 at 12:00 am