PNC Bank Corp. said Wednesday that it is selling 12 branches in western Pennsylvania to two community banks.
Northwest Bankcorp., the Warren, Pa.-based parent of Northwest Savings Bank, would acquire eight branches with about $273 milion of deposits and $56 million in consumer and business loans. The other four branches, with $113 million of deposits and $27 million in loans, would be sold to CNB Financial Corp. in Erie, Pa., the parent of County National Bank.
Joseph C. Guyaux, chief executive officer for PNC's Regional Community Bank, said PNC decided to sell the branches after an analysis determined "we had an insufficient market share in these localities to produce an appropriate return for our shareholders."
Terms of the sales were not disclosed. In both deals, $77 billion-asset PNC would retain its large corporate, trust, merchant services, and mortgage customers.
Northwest Savings, with $2.9 billion of assets, has 80 branches in central and western Pennsylvania. Its parent also operates Jamestown (Pa.) Savings Bank. County National has $450 million of assets and 16 branches in five counties.