Acquisition and Divestiture Activity

12 Months Ended

Dec. 31, 2020

ACQUISITION AND DIVESTITURE ACTIVITY

Pending Acquisition of BBVA USA Bancshares, Inc.

On November 16, 2020, we announced a definitive agreement with BBVA, S.A. to acquire BBVA including its U.S. banking subsidiary, BBVA USA, for a fixed purchase price of $11.6 billion in cash.

BBVA USA has over 600 branches in Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. The transaction is expected to add approximately $102 billion in total assets, $86 billion of deposits and $66 billion of loans to PNC’s Consolidated Balance Sheet and to close in mid-2021, subject to customary closing conditions, including receipt of regulatory approvals.

Sale of Equity Investment in Blackrock, Inc.

In May 2020, PNC completed the sale of its 31.6 million shares of BlackRock, Inc., common and preferred stock through a registered secondary offering at a price of $420 per share. In addition, BlackRock repurchased 2.65 million shares from PNC at a price of $414.96 per share. The total proceeds from the sale were $14.2 billion in cash, net of $0.2 billion in expenses, and resulted in a gain on sale of $4.3 billion. Additionally, PNC contributed 500,000 BlackRock shares to the PNC Foundation.

Following the sale and donation, PNC has divested its entire investment in BlackRock and only holds shares of BlackRock stock in a fiduciary capacity for clients of PNC.

The following table summarizes the results from the discontinued operations of BlackRock included in the Consolidated Income Statement:

Table 39: Consolidated Income Statement - Discontinued Operations


	Year ended December 31
In millions	2020		2019		2018
Noninterest income	$	5,777	$	988	$	942
Total revenue	5,777		988		942
Income from discontinued operations before income taxes	5,777		988		942
Income taxes	1,222		161		154
Net income from discontinued operations	$	4,555	$	827	$	788

The following table summarizes the cash flows of discontinued operations of BlackRock included in the Consolidated Statement of Cash Flows:

Table 40: Consolidated Statement of Cash Flows - Discontinued Operations


	Year ended December 31
In millions	2020		2019		2018
Cash flows from discontinued operations
Net cash provided (used) by operating activities of discontinued operations	$	(2,683)	$	299	$	264
Net cash provided by investing activities of discontinued operations	$	14,225