NATIONAL CITY BANK

Banking News from The Plain Dealer

National City moves up to 7th largest U.S. bank

by Teresa Dixon Murray/Plain Dealer Reporter

Monday October 13, 2008, 5:34 PM

National City has catapulted to No. 7 among the largest banks in the nation, up from No. 11 a year ago, a new report says.

And, according to the report from the Federal Deposit Insurance Corp., Ohio has more of the nation's big banks than any other state -- even New York.

Ohio is home to four of the nation's top 25 banks, as measured by deposits. KeyCorp of Cleveland gained one notch to move to No. 16; Fifth Third Bancorp of Cincinnati stayed the same at No. 15; and Huntington Bancshares of Columbus jumped from No. 30 to No. 24. Eight of the top 25 are foreign-owned.

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A look at some potential buyers of Ohio banks

by Teresa Dixon Murray/The Plain Dealer

Friday October 10, 2008, 6:58 PM

A handful of banks appear to be shopping, and one of them could end up buying National City Corp. or one of Ohio's other public or private banks.

Here's a look at some of the possible suitors:

Citigroup

Headquarters: New York

Branches: 1,400, mostly in the New York, Chicago, Miami and Washington, D.C., areas and in California.

Deposits: $271 billion

Founded: 1812

Comments: Citigroup got beat out in its bid to buy Wachovia, so Citi is in a buying mood. Citi has now dropped to No. 4 nationwide in deposits; it used to be No. 1. Still, Citi has its share of exposure to the mortgage mess already; in the past year it bolstered its finances by raising $7.5 billion from Abu Dhabi, and the company ousted its chief executive over mortgage losses. Citibank has operations in more than 100 countries and territories worldwide.

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Charities in Cleveland, Midwest anxious about National City's donations

by Tom Breckenridge/Plain Dealer Reporter

Thursday October 09, 2008, 9:25 PM

National City's uncertain future is yielding high anxiety for hundreds of nonprofit groups and community events here and across the Midwest.

They depend on the charitable giving, sponsorships and volunteer muscle that the banking giant delivers across its nine-state market.

Each year, National City's charitable foundation doles out some $20 million, including hundreds of thousands of dollars for community pillars like United Way of Greater Cleveland and the local chapter of the American Red Cross.

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Are PNC, Scotiabank interested in National City?

by Teresa Dixon Murray/The Plain Dealer and Sarah Hollander/The Plain Dealer

Thursday October 09, 2008, 6:03 PM

As rumors persist about the potential sale of National City Bank, so does speculation about who might be interested in buying.

The PNC Financial Services Group of Pittsburgh and Scotiabank of Toronto were two of the top possibilities getting a lot of attention today.

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Employees watch bank's saga with interest

by Frank Bentayou/The Plain Dealer

Thursday October 09, 2008, 3:34 PM

Current and former employees have a stake, whether financial or emotional, in whether National City loses its identity in a deal with another bank.

Kim Novak worked for the bank 20 years before leaving in the late 1990s. "It does break my heart to think there would be no National City," she said. "I have a lot of fond memories and always thought it represented the good, sturdy Cleveland bank."

Novak worked in the bank's trust department, and she remains in the securities business in her current position at MAI Wealth Advisors LLC in downtown Cleveland. She said she's grateful she did not hold on to any of the company's stock in her personal and retirement accounts.

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How National City got to this point

by Teresa Dixon Murray/The Plain Dealer

Thursday October 09, 2008, 3:31 PM

National City's slide

1999: National City bought California-based First Franklin from a subsidiary of Bank of America for $266 million. First Franklin specialized in subprime mortgages for people with poor credit ratings who could qualify for loans only at high interest rates.

September 2006: After relying on its subprime division for one-fourth of its mortgage volume, National City sells First Franklin to Merrill Lynch & Co. for $1.3 billion.

December 2006: National City closes the First Franklin deal but, while Merrill bought $6 billion in National City's subprime loans, it wouldn't take an additional $10 billion worth because they were too risky, even for subprime loans.

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Credit crisis makes market ripe for bank consolidations

by Robert Schoenberger/Plain Dealer Reporter

Thursday October 09, 2008, 12:10 PM

The collapse of portions of the mortgage market and the continuing credit crisis have hammered banks all year. In other words, it's been a perfect market for bank mergers.

Sometimes with the help of regulators, stronger banks have snatched up the assets of their failing rivals all year.

Some high-profile examples:

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National City widens Cleveland market share lead

by Teresa Dixon Murray/Plain Dealer Reporter

Wednesday October 08, 2008, 6:43 PM

National City Corp. significantly increased its deposit market share in Greater Cleveland while most of the region's other major banks lost share, according to an annual report released today by federal regulators.

Cleveland-based National City finished the year ending June 30 with nearly 32 percent market share in the Cleveland-Elyria-Mentor region, up from 28 percent a year earlier, according to the Federal Deposit Insurance Corp. Deposits jumped to $20.1 billion, from $16.7 billion.

KeyCorp of Cleveland finished with 17 percent market share and $10.9 billion in deposits. The percentage was down about half a point from the prior year, but the deposit value was up by $300 million.

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