Rosenfeld Realty Advisors: PNC BANK GROWING IN SOUTH FLORIDA

Look out TD Bank. There is another player in the banking business that is looking to grow and they are making serious progress. PNC Bank opened 10 branches last year, and plans 4 more branches this year. All of these locations are in Broward County, and PNC expects to have 81 branches in South Florida by the end of the year. As we have talked about in the past, many banks have chosen to expand by acquiring other banks, and PNC is no exception. They bought both RBC Bank and National City and are rumored to be looking at others. With 54 locations in Palm Beach County, they have more market share (6.3%) than SunTrust, TD Bank, BB & T, Citibank and Bank United. Unfortunately Dade County is the weakest link for PNC now, with only 2 branches but they are looking to change that. The problem is that they are hitting the market at a peak time, so we will see how this all works out for PNC. The problem is that those corner parcels that they seek for branch sites are in high demand in Dade right now, with interest from banks, restaurants and gas stations. Banks can and will pay the most for a site, so unless TD is bidding against them they might be OK. I think we will see more banks being acquired to pave the way for expansion than new branch development going forward. But expect to see a PNC opening on a corner near you, especially if you live in Broward or Dade Counties. There is another interesting nugget in here that is worth sharing: 80% of bank customers bank online, by phone or ATM. So why do banks need so many locations? The evolving answer is that they don’t, and we will see that play out in the years to come as the banking industry continues to change. Technology makes things more efficient, which means less people are needed, less jobs, real estate, etc. so it will also be interesting to see how everything else changes with it.

PNC Bank heating up with Florida economy

http://articles.sun-sentinel.com/2014-03-08/business/fl-pnc-broward-branches-opening-20140308_1_pnc-bank-national-city-branches