6 Banks PNC Might Want to Buy

Last week, PNC Financial Services Group (NYSE: PNC), the holding company of PNC Bank, said it would sell its entire stake in BlackRock, prompting rumors that it could soon make a big splash with an acquisition. PNC CEO and Chairman William Demchak did not deny the chatter, telling CNBC that ideally PNC would look to acquire another bank that drives the company's overall strategy of becoming a national player in both retail banking and commercial and industrial (C&I) loans.

History tells us Demchak will likely look to find a candidate trading below book value at a decent discount. In 2008, during the Great Recession, PNC acquired National City Corp. for $7 billion less than National City's tangible book value, according to The Wall Street Journal. That acquisition has proven to be a success, and Demchak has made it clear he would like to replicate it. "Look, if there was another National City less than book value that we can do ... of course, we would do it, but that's a value question," he said on an earnings call last July.

Analysts from SunTrust and Keefe, Bruyette & Woods have speculated on several banks PNC might be interested in purchasing. The names that intrigue me most are Comerica (NYSE: CMA), Regions Financial (NYSE: RF), Citizens Financial Group (NYSE: CFG), F.N.B. (NYSE: FNB), and KeyCorp (NYSE: KEY) (as well as Goldman Sachs (NYSE: GS), which came up elsewhere).