downwardly revised its third-quarter loss on Thursday, citing a writedown in its valuation to be consistent with the price tag of its acquisition by
PNC Financial Services Group
Nat City now says it lost $2.1 billion during the period, or $7.40 per share, compared with its earlier reported loss of $729 million, or $5.86 per share. The new results reflect a non-cash charge of $1.34 billion, associated with its corporate banking business line.
The troubled Cleveland-based bank said its purchase price was "less than National City's book value and approximately equal to its market capitalization at that time."
Its shareholder equity was also pushed 8.1% lower to $15.8 billion, vs. $17.2 billion previously reported. The company said there was no effect on tangible equity, cash flow or regulatory capital.
The acquisition took place after the Treasury Department accepted
into its recapitalization program, granting the company $7.7 billion in exchange for preferred stock. Nat City was forced into the hands of its competitor, being viewed as too weak to participate in the Treasury's program.
Other banks that have received part of the Treasury's $250 billion authorization include
Bank of America