July 27, 2011 3:02 PM

Wachtell Advising PNC and NBH Holdings on Bank Deals

Posted by Brian Baxter

Wachtell, Lipton, Rosen & Katz is counseling financial services giant PNC and a subsidiary of the private equity firm NBH Holdings on their acquisitions of deposits from two regional banks.

Pittsburgh-based PNC announced late Tuesday that it will acquire 27 bank branches in metropolitan Atlanta from Flagstar Bank. PNC would assume about $240 million in deposits but no loans from Flagstar, a unit of Troy, Michigan–based Flagstar Bancorp, which operates 165 branches in Georgia, Indiana, and Michigan. 

Wachtell corporate partner Lawrence Makow, executive compensation partner Jeannemarie O'Brien, tax partner Joshua Holmes, and associates Justin Rosenberg, Christina Cheng, and Michael Sabbah are advising PNC on the deal. PNC's general counsel is Helen Pudlin.

Wachtell represented PNC last month on the $3.45 billion purchase of a U.S. retail banking unit owned by the Royal Bank of Canada. Wachtell also advised PNC on the $2.3 billion sale of its global investment servicing business to The Bank of New York Mellon last year and the $5.6 billion acquisition of struggling Cleveland-based banking group National City in 2008.

Wachtell also is advising Bank Midwest, National Association, in Kansas City, Missouri, a unit of private equity firm NBH Holdings, on its purchase and assumption agreement with the FDIC to acquire certain deposits and other liabilities from Bank of Choice, based in Greeley, Colorado. The Bank of Choice operates 17 branches in Colorado.

The Colorado Division of Banking closed Bank of Choice a week ago, according to The Denver Post. The FDIC was appointed as receiver for Bank of Choice, which had more than $1 billion in assets and $924.9 million in deposits as of March. NBH will now take control of Bank of Choice. The failure already cost the FDIC's insurance fund about $213.6 million, according to a statement from the regulator.

Wachtell corporate partners Richard Kim and David Shapiro, counsel Jeffrey Watiker, and associates Mark Veblen, Edward Lee, and Raaj Narayan are advising Bank Midwest on the acquisition of Bank of Choice. Bank Midwest's general counsel is Eugene Twellman.

The firm advised Boston-based NBH a year ago on its acquisition of $3 billion-asset Bank Midwest from Kansas City, Missouri–based Dickinson Financial. The firm also counseled NBH on its purchase of $1.54 billion in deposits held by failed Overland ,Kansas–based Hillcrest Bank last October.

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