PNC Raises More Than $600M in Offering

PNC Financial Services has raised more than the $600 million in it was told to raise by the federal government after recent stress tests.
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PNC Financial Services

(PNC) - Get Report

has raised more than the $600 million in capital that the regional bank was told to raise by the federal government after recent stress tests.

The Pittsburgh-based bank said the equity raise was the result of issuing 15 million shares of common stock through an "at the market" offering launched two weeks ago.

"Given the ongoing uncertainty in the market, capital strength and liquidity are key drivers of success," Chairman and CEO James Rohr said. "I am pleased that were we able to raise the required $600 million of common equity at market prices and in a relatively short time frame."

PNC said it plans to continue to increase its common equity as a proportion of total capital through growth in retained earnings. It will also consider other capital opportunities, the company said.

A host of other banks have looked to the equity markets this month to fill their capital holes, including

Wells Fargo

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,

Bank of America

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,

SunTrust Banks

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and

KeyCorp

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, among others.

Separately,

Bank of America said Wednesday that it has raised $26 billion of the roughly $34 billion it was told to raise by the government.

Other banks including

Bank of New York Mellon

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,

US Bancorp

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,

BB&T

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and

Capital One

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issued common stock in order to pay back government funds received through the Troubled Asset Relief Program.

PNC, which bought troubled National City, at the end of last year, says it has "no plans to convert preferred shares" issued through TARP to common stock. The company plans to redeem the $7.6 billion in government bailout funds "as soon as appropriate, subject to approval by its primary banking regulators," it said.