NCC Watcher

Natrional City to be absorbed by PNC Financial

2008-10-25T17:34:00.001-04:00

I'm not sure yet what all the ramifications of this will be.

PNC Financial Services Group Inc. will absorb National City Corp. after federal officials turned down National City's request for new capital under the government's $700 billion rescue program.

PNC agreed to pay $5.6 billion for National City, an Ohio-based bank holding company that ran into trouble because of expansion and exposure to subprime mortgage loans. The price of $2.23 a share reflects a roughly 19 percent discount to National City's closing price the day before the deal was announced.

The Treasury Department and the Federal Deposit Insurance Corp. helped arrange the takeover. The deal marked the first time that the government has intervened in picking winners and losers in the financial industry since Treasury officials announced that part of the $700 billion in bailout money would be used to make direct investments in banks rather than to buy their troubled assets.

Read the whole thing at Bailout Sleuth: Picking Winners

NCC stock price

2008-10-02T18:37:00.000-04:00

National City's stock price continued it's upward trend after Monday's disaster.

It closed today at $3.14 on volume of $196 Million. (Link.)

Standing by for whatever Friday will bring.

NCC coming back, and a possible FDIC take-over

2008-10-01T21:25:00.004-04:00

National City stock price increased by more than a dollar to close today at $2.89 on volume of $588 Million. That's the good news.

The not so good news, according to the well known website, ClusterStock:

We don't mean to be alarmist, but it seems almost inconceivable that depositors at National City (NCC) and Sovereign (SOV) aren't running for the hills. WaMu's depositors yanked $16.7 billion from WaMu in the 10 days after Lehman failed, and the stocks of NCC and SOV are doing an excellent WaMu imitation (see below).

The relevant FDIC staffers are probably still recovering from the all-nighter they just pulled on Citi-Wachovia, but we recommend they get their butts out to NCC and SOV before they have no choice but to put the shops into receivership.

That was as of Monday the 29th. See the entire post for charts and graphs.

Well, the stampede on National City came on the same day as the bailout failure and the 777 stock market dive.

NCC trying to recover

2008-09-30T17:44:00.003-04:00

Well, after a disastrous day yesterday, National City's stock price came back by 39 cents today, to close at $1.75 (link).

Yesterday's NCC volume was over $312 Million compared to today's $213 Million.

Yesterday, the Dow closed down 777 points. It got back 485 of those points today, closing at

This partial recovery is thanks to the news that Congress will reconsider the bank rescue plan, a/k/a bailout, that went down in flames yesterday (CNN: Dow comes back big).

Bailout failure and stock market

2008-09-29T16:41:00.002-04:00

On news of Congress's failure to pass the bailout legislation today, the Dow closed down 614 points.

It seems banks are falling left and right.

National City isn't doing too well, either.

It looks like NCC closed today at $1.36, which is down about 64% from this morning.

Washington is broke. We are in trouble.

Correction: On Monday, the Dow closed down 777 points.

National City in Springfield robbed

2008-08-05T23:28:00.003-04:00

From the State Journal-Register:

National City Bank, 802 S. 11th St. [Springfield, Illinois], was robbed Monday morning.

A man walked in about 9:10 a.m. with his face concealed by a turquoise handkerchief. He approached a teller, demanded money at gunpoint, then fled.

A witness followed the robber as he ran and saw him go behind a house at 14th and Clay streets, where he changed clothes. The witness did not have a cell phone, so he left the scene briefly to alert police where the robber was. When officers got there, he was gone.

The robber was described as black and 25-30 years old. He was wearing a dark blue sweatshirt, maroon or dark purple pants and gray shoes with white laces. He also was wearing a black White Sox cap with the word “Sox” in white letters vertically on the front.

He possibly was carrying a paper bag with an emblem on it. (Link.)

Geez. That's the branch where I opened my account, and quite possibly the littlest bank I've ever been in. Here's hoping they catch the guy. Speaking of which, if anyone has a tip on this crime or any other in Central Illinois, call Crime Stoppers at 217-788-8427.

Tues., Aug. 5, 2008, NCC updates

2008-08-05T18:33:00.004-04:00

National City stock closed up today at $5.05 on volume of 19 million. (Source.)

BloggingStocks.com takes note of National City in a piece with some good historical points:

What went wrong? At number 6 on our list of SPX underdogs, NCC gave up 87% of its value from June 30, 1998 through June 30, 2008. The stock peaked at $40 in November 2005, and then edged sideways ... until it ran headlong into the subprime tsunami. (Worst 10-year performers: National City mauled by mortgage meltdown.)

And, following up on the previously reported effort to sell off Allegiant:

The first round of bids for National City Corp's (NCC.N: Quote, Profile, Research, Stock Buzz) Allegiant Funds asset management business were due at the end of last week, a person familiar with the matter said on Tuesday.

National City, being represented by Morgan Stanley, was expected to go through the offers and decide which bidders to invite to conduct due diligence for the operation, the source said.

[...]

A National City spokeswoman declined to comment. (Reuters.)

Tues., July 29, 2008, NCC close

2008-07-29T22:06:00.000-04:00

National City closed the day at $4.98. Compared to the last couple months, that seems almost healthy.

In other news, Nisa Investment Advisors 133,998 shares of NCC, leaving it with 14,000 shares in its portfolio, per filings made public on 2008-07-28 (link).

Fri., July 25, 2008, NCC stock notes

2008-07-25T19:41:00.002-04:00

Is confidence in National City getting back to normal? Maybe, if a $5.10 close price is any measure of normalcy. (Source.)

Today's National City Conference Call

2008-07-24T18:19:00.005-04:00

Instead of trying to rehash the thing, perhaps it's best to just link to National City's press release and note a few highlights. Off the top:

Net Loss of $1.8 Billion Driven By Actions to Increase Loss Reserves on Liquidating Loan Portfolios; Includes $1.1 Billion After-Tax Non-Cash Goodwill Charge Related to Previous Acquisitions -- No Effect on Regulatory Capital
Excluding Unusual and Non-Operating Items, Pre-Tax Pre-Provision Operating Earnings Were $610 Million, Up 19%
Tier 1 Capital $7 Billion over Well Capitalized Minimum; 11.1 % Tier 1 Capital Ratio Highest of All Major U.S. Banks
Net Charge-Offs of $740 Million, Predominantly in Liquidating Loan Portfolios Versus $1.6 Billion Provision for Loan Losses; Nonprime Delinquencies Down
Solid Progress in Actively Managing Liquidating Loan Portfolios, Which are Isolated, Contained, and Performing in Line with Expectations
Aggressively Re-Focusing on Core Businesses, Which Remain Profitable; Deposits Continue Solid Growth Trend
Enhanced Leadership Team Intensely Focused on Managing Risk, Controlling Expenses and Improving Profitability

A lot more can be found in the press release, which is definitely worth reading.

Despite the country's mortgage meltdown and how National City got involved in it and how it is probably going to suffer for it for a long time, I don't think it's too soon to predict that National City and its management will have a lot to be proud of. They've seen the error of their ways and are taking steps to rectify it. Of course, that seven billion helped a lot in calming people's nerves.

Thurs., July 24, 2008, NCC stock notes

2008-07-24T17:56:00.006-04:00

On Thursday, July 24, 2008, NCC stock:

Opened: $5.15 (up from yesterday's close, due to after hours trading and possibly in anticipation of this morning's conference call)
High: $5.24
Low: $4.52
Closed: $4.61
Volume: 61 Million

Source.

Also, Thompson Investment Management Llc added 712,280 NCC shares to its portfolio as shown by filings made public on 2008-07-23.

Wed., July 23, 2008, NCC stock notes

2008-07-23T19:04:00.003-04:00

Wednesday, July 23rd, National City stock:

Opened: $4.62 (up, thanks to after hours trading)
High: $5.33
Low: $4.51
Closed: $4.71
Volume: 59.5 Million

Source.

And, Td Banknorth NA added 13,866 NCC shares to their portfolio per filings made public yesterday.

Details for rescheduled conference call

2008-07-23T17:05:00.003-04:00

Regarding tomorrow's conference call, from a press release:

National City Sets New Time for Second Quarter Earnings Conference Call

National City Corporation announced that it will hold its conference call to discuss second quarter 2008 financial results at 8 a.m. (ET) on Thursday, July 24, 2008, earlier in the morning than previously scheduled.

Interested parties may access the conference call by dialing 1-800-288-8961. Please note that this number differs from the previous announcement. The call will be open to the public with both media and individual investors invited to participate in a listen-only mode. Participants are encouraged to call in 15 minutes prior to the call in order to register for the event. The conference call will also be accessible via the Company's Web site,
nationalcity.com/investorrelations .

Questions for discussion on the conference call may be submitted any time prior to the call by sending an email to investor.relations@nationalcity.com.

A replay of the conference call will be available from 10 a.m. (ET) on July 24, 2008, until midnight (ET) on July 31, 2008. The replay will be accessible by calling (800) 475-6701 (domestic) or (320) 365-3844 (international) using the pass code of 893754, or via the Company's Web site.

(Emphasis added.)

It doesn't definitively say, but I think that answers the previously asked question: Can bloggers attend?

National City looking to unload excess baggage

2008-07-23T16:58:00.000-04:00

From Reuters:

National City Corp (NCC.N: Quote, Profile, Research) is trying to sell its money-management unit, the Wall Street Journal reported in its online edition, citing people familiar with the matter.

National City is working with Morgan Stanley to shop Allegiant Funds, which manages about $30 billion.

Source: National City trying to sell money-management unit: report

Apparently, National City isn't the only one. Fifth Third and KeyCorp are also reported to be looking for buyers for assets. As it should be in these times. One less thing to worry about.

Oppenheimer feeling good about NCC

2008-07-23T00:12:00.003-04:00

Missed this from Thomson Financial News last Wednesday:

National City Corp. has taken steps to bolster investor confidence and isn't at risk of going the way of IndyMac Bancorp Inc. as reports have suggested, Oppenheimer said Tuesday.

In a note entitled: "Proactive Steps Already Taken; Bank Not About to Float Down the Cuyahoga River," Analyst Terry McEvoy backed a "perform" rating on National City, whose shares have plunged more than 20% since news reports identified it as one that could follow a similar path as IndyMac. McEvoy cited the bank's initiative to build up reserves and capital over the past few quarters for her upbeat view.

[...]

"Reserves grew from $1.4 billion at the end of third quarter 2007 to $2.6 billion at the end of the first quarter of 2008," McEvoy wrote to clients. "Because of the $7 billion of new capital raised in April 2007, the company's tangible capital level is well above peer levels."

She sees the company's tangible book value at $6.86 a share by the end of fiscal 2009, and expects National City to post a loss of 18 cents a share when it reports its second quarter results on July 24, narrower than the 26 cents-a-share mean estimate of analysts polled by Thomson Reuters.

"The difficulty today in predicting NCC's quarterly earnings lies not so much in the size of the credit losses, but when they will be realized," McEvoy wrote, noting management's forecast for $2 billion to $2.4 billion of net charge-offs in 2008 ($538 million recorded in the first quarter) taking into account all loan categories. McEvoy's loss estimate includes her projection that National City will record $850 million of the net charge-offs on bad loans in the second quarter.

Meanwhile, National City, which holds $925 million worth of restricted Visa Inc. shares it acquired in the credit card company's IPO during the first quarter, said it would explore options for unlocking the value in these shares before the lock-up period expires.

Source: National City not at risk of going the IndyMac way -- Oppenheimer

Yes, the message is directed to shareholders. But, depositors and employees can feel re-assured, too.

Also, very interesting to note the Visa shares.

Tues, July 22, 2008, trade notes

2008-07-22T22:53:00.000-04:00

Tuesday, July 22nd, National City stock, held somewhat steady:

Opened: $4.36
High: $4.89
Low: $3.54
Closed: $4.37
Volume: 41 Million

Source.

Mon. July 21, 2008, NCC price notes

2008-07-21T22:12:00.000-04:00

To start the week National City stock:

Opened: $4.80
High: $4.97 (closest NCC has been to breaking $5.00 since June 25th)
Low: $4.20
Closed: $4.40
Volume: 22 Million

Source.

2008-07-18T16:31:00.002-04:00

National City stock, after a shaky Monday, ended the week up:

Opened: $4.54
High: $4.60
Low: $4.23
Closed: $4.54
Volume: 22 Million

Source.

Also:

* Unionbancal Corp sold 128,318 NCC shares; they still hold 56,073

Thurs., July 17, 2008 price

2008-07-17T19:15:00.000-04:00

Thursday, July 17, 2008, National City stock:

Opened: $4.45 (up 3 cents from yesterday)
High: $4.64
Low: $4.01
Closed: $4.22
Volume: 49.67 Million

Source.

Wed., July 16, 2008, notes

2008-07-16T17:24:00.003-04:00

Wednesday, July 16, 2008, National City stock:

Opened: $3.88 (up)
High: $4.40
Low: $3.50
Closed: $4.19
Volume: 37.29 Million

Source.

Also:

* National City (NCC) Proxy Statement to Be Mailed Aug. 4 Requesting An Increase In Shares

* Holowesko Partners Ltd 3,930,000 NCC shares to its portfolio

Tues, July 15, 2008 trade notes

2008-07-15T16:47:00.003-04:00

On Tuesday, July 15, 2008, NCC stock:

Opened: $3.56
High: $3.79
Low: $3.10
Closed: $3.53
Volume: 64.45 Million

Source. In after hours trading, it's up.

Buckhead Capital Management Llc added 260,000 shares of NCC to their portfolio. (Source.)

Bush to give statement this morning [Updated]

2008-07-15T09:33:00.006-04:00

President George Bush is scheduled to give a press conference at 10:20 a.m. Eastern on the topic of the U.S. economy, and specifically FannieMae and FreddieMac.

It is expected he will try to assure the citizens, business, and especially shareholders. He will try to instill confidence. Will it work?

Update: Well, it appears to have have some positive effect. Using only NCC as a gauge, before the president spoke, NCC was down to $3.10. As of Noon Eastern time, it's up to $3.70. That's still not up to what it closed at yesterday, but still a notable increase. Of course, there are other factors to consider besides the President's words, including the price of oil has dropped $7.00, and the Federal Rerserve Bank chairman speaking.

FDIC statement

2008-07-15T09:24:00.002-04:00

From the AP first thing this morning:

The head of the Federal Deposit Insurance Corporation says the nation's banking system is sound and Americans' deposits are "overwhelmingly" safe.

Sheila Bair, the FDIC chairman, says people worried about their money should not be overly concerned because the FDIC is their safety net. She made her comments on CBS' "The Early Show." The FDIC insures bank deposits of up to $100,000 and up to $250,000 for funds in retirement accounts such as an IRA

Bair says "no insured depositor has ever lost a penny of insured deposits throughout the FDIC's 75-year history."

Source: FDIC chair: deposits in nation's banks are safe

Mon., July 14, 2008 price notes

2008-07-14T19:04:00.006-04:00

On Monday, July 14, 2008, NCC stock:

Opened: $4.50
High: $4.50
Low: $2.99
Closed: $3.77
Volume: 78 Million

Source.

As of this hour, it's still trading down in the after hours market.

NCC trading halted [Update: It has resumed]

2008-07-14T12:35:00.006-04:00

Bloomberg:

National City Corp., whose trading was halted in New York after the stock fell as much as 31 percent, said there was ``no unusual depositor or creditor activity'' at the Ohio bank.

The bank also has enough capital, according to a statement today on PR Newswire. The stock dropped $1.22 to $3.20 a share at 11:50 a.m. in New York Stock Exchange composite trading, and fell as low as $3.04. The last time shares of the Cleveland- based bank sold for less was June 1984.

(Source: National City Reports No `Unusual' Activity After Stock Plunges.)

Update: Today's press releases from National City:

I'll look at that first one a little closer later on.

Second update, this from the same Bloomberg article:

The company has enough capital and access to cash, according to a statement today from Cleveland-based National City. The stock was down $1.33, or 30 percent, to $3.09 a share at 12:32 p.m. on the New York Stock Exchange after composite trading resumed, and fell as low as $3.04 earlier in the day. The last time the stock sold for less was June 1984.

As of 1:00 p.m. Eastern, the stock price is up to $3.34.