- RBS Citizens, NA of Providence, R.I., is a subsidiary of Citizens Financial Group, which in turn is held by Royal Bank of Scotland Group PLC(RBS). The U.S. bank subsidiary had $106.9 billion in total assets, with over 1,500 branches in 12 states, while the U.S. holding company has roughly $132 billion in assets. RBS Citizens, NA was strongly capitalized as of March 31, with a Tier 1 leverage ratio of 10.09% and a total risk-based capital ratio of 13.09%, according to data supplied by Thomson Reuters Bank insight. These ratios need to be at least 5% and 10%, respectively, for most U.S. banks to be considered well-capitalized by regulators. Among the four banks listed here, "a sale of Citizens to a US regional bank appears to be the least likely," according to Penala, because of the size of the bank and what might be an "unattractive" price for RBS.
- Sovereign Bank, NA of Wilmington, Del., is a subsidiary of Santander Holdings USA, which in turn is held by Banco Santander, SA (STD). The U.S. subsidiary bank had $78.2 billion in total assets as of March 31, with a Tier 1 leverage ratio of 11.15% and a total risk-based capital ratio of 16.45%. Penala said that a deal for Sovereign "would give an acquirer a sizeable presence in the Northeast, given the bank's number three market share in Massachusetts, number four market share in Pennsylvania and number seven market share in New Jersey."
- Compass Bank of Birmingham, Ala., is a subsidiary of BBVA Compass Bancshares, which in turn is held by Banco Bilbao Vizcaya Argentaria, SA (BBVA). The U.S. bank subsidiary had $63.1 billion in total assets as of March 31, with a fourth-place deposit market share in Texas, which Penala said "may be the most coveted asset" of the four U.S. subsidiary banks listed here. Compass Bank had a Tier 1 leverage ratio of 8.83% as of March 31, with a total risk-based capital ratio of 14.24%.
- Bank of the West of San Francisco is a subsidiary of BancWest Corp., which in turn is held by BNP Paribas SA. Bank of the West had $$62.4 billion in total assets as of March 31, with a Tier 1 leverage ratio of 11.57% and a total risk-based capital ratio of 15.45%.
4 Euro Crisis Targets in U.S. Banks' Crosshairs
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