Nuova Banca delle Marche

History

Banca delle Marche was founded in 1994 by the merging of two banks: Cassa di Risparmio della Provincia di Macerata and Pesaro; Cassa di Risparmio di Jesi joined in 1995. In 1990s Cassa di Risparmio delle Provincie Lombarde (Cariplo) was a minority shareholders of the bank for 5.13% (as in 1996), which Cariplo was a minority shareholders of CR Jesi; it was diluted to 4.60% in 2001, which was sold by Banca Intesa in 2002 to Banca delle Marche as treasury shares, for €45 million. In 1997 the bank acquired a controlling interests in Cassa di Risparmio di Loreto and Mediocredito Fondiario Centroitalia (Banca Marche owned 41.18% shares), the pro forma market share of the group in the loan of Marche region, was 26.7% (based on 1996 data), while before the acquisition, the bank already had a market monopoly of 53.6% in the deposits of the Province of Macerata (pro rata 55.0% after the acquisition), comparing to Banca Popolare di Ancona (14%), Banca di Roma (6.38%) and Banca Nazionale del Lavoro (5.60%). The pro forma market share of the deposits in the Province of Ancona was 32.3%, which ahead Banca Popolare di Ancona (13.03%), Unicredito (11.04%) and Banca di Roma (9.78%).

On 1 July 2003 Sanpaolo IMI purchased 7% shares of the bank for €92.1 million. The banking foundations also had a put option to sell an additional 8% shares to Sanpaolo IMI. However, the foundations did not excise the option. In 2007 the shares held by Sanpaolo IMI was transferred to Intesa Sanpaolo after the merger with Banca Intesa. Intesa Sanpaolo did not took part in the capital increase of Banca delle Marche in 2012.

Insolvency

On 24 October 2011, the board of directors proposed a capital increase of a minimum of €180,677,922.70 to a maximum of €212,562,262.00. After the capital increase (of €179,573,391), as at 31 December 2012, the bank had a Tier 1 capital ratio of just 5.62% in consolidated balance sheets, with a shareholders' equity of €959.503 million. According to Ricerche e Studi, the bank was the 19th largest bank in Italy by total assets as at 31 December 2012.

On 15 October 2013 it was under special administration (A.S.) by the decree of the Ministry of Economy and Finance, after a temporary administration by the Bank of Italy in August. On 4 August 2014 Credito Fondiario credited Banca delle Marche for €1.8 billion, which Credito Fondiario also planned to subscribe the new shares of Banca Marche, partnering with Fondo Interbancario di Tutela dei Depositi (FITD). The plan was approved by the Bank of Italy on 3 December 2014. However, the plan was scrapped due to European Commission's investigation on state aid. After Banca Marche failed to repay the loan, Credito Fondiario sold the collateral in May–June 2015, which fully reimbursed the loan, with an excess amount was return to Banca Marche in June.

Another capital injection of more than €2 billion to Banca Marche, Banca Etruria, Carife, and CariChieti by FITD was planned in late 2015, (€1.2 billion maximum for Banca Marche) subject to the permission from the Bank of Italy and European Central Bank.

Eventually they were bail-out by Italian National Resolution Fund (Italian: Fondo Nazionale di Risoluzione) on 22 November instead, for about €3.7 billion in total (€840 million for purchasing new shares of Banca Marche and an additional €1.206 billion to cover the previous loss of Banca Marche). The rescue of the four banks were in line with EU Bank Recovery and Resolution Directive, which was in force in Italy in late 2015. The Bank of Italy was the assigned "national resolution authority" of this mechanism. As the plans were following the directive, they were approved by the European Commission. Banca Marche assets and liabilities would split into good and bad bank, while the old bank would be liquidated, which the shareholders and subordinated bond holders would receive nothing due to bail-in. Among the former shareholders of the bank, as at 31 December 2015 Fondazione Carima had a net assets of €74,227,538 (decreased from €154,175,111), while Fondazione CR Pesaro had a net assets of €65,594,243 (decreased from €169,830,262). Fondazione CR Jesi suffered the most, which decreased from €76,388,622 to €10,989,510.

On 3 May 2016, Decree-Law N°59/2016 was announced, which the retail investors of the bond of the 4 banks would be refunded (up to €100,000, same as deposit insurance) if they purchased the bond on or before 12 June 2014, the date of Bank Recovery and Resolution Directive was passed in the European Parliament. The decree-law was a response to the criticism of the bail-in of all junior investors of the bank, which Italian bank often sold risky bond of themselves to their depositors. The refund scheme: Fondo di solidarietà, would be managed by FITD.

Nuova Banca delle Marche

On 22 November 2015 the bank was split into a bad and good bank, which the good bank was called Nuova Banca delle Marche. The new bank had a share capital of €1.041 billion and a Tier 1 capital ratio of 9%. While the bad debts was transferred to a single "bad bank" REV - Gestione Crediti, which was shared with Carichieti, Carife and Banca Etruria. The transfer of the bad debt was completed in early 2016.

In March 2016 a plan to absorb Medioleasing into Nuova Banca delle Marche was announced. On 1 August it became effective. Focus Gestioni SGR, the asset management subsidiary of the bank, was also entered voluntary liquidation.

On 12 January 2017, UBI Banca made a biding bid of a nominal €1 for Nuova Banca Marche, Nuova CariChieti and Nuova Banca Etruria. The banking group also requested conditions that the balance sheets of the three banks would be cleaned up before the completion of the deal (which was done by selling NPLs to Atlante II) as well as recapitalized for another €450 million. On 18 January the bid was accepted.

Shareholders

Subsidiaries

Cassa di Risparmio di Loreto, Medioleasing and Focus Gestioni SGR were subsidiaries of the group as at 2014. Mediocredito Fondiario Centroitalia, which was absorbed into Banca delle Marche in 2003, was a merger of Mediocredito delle Marche and Istituto di Credito Fondiario delle Marche, Umbria, Abruzzo e Molise in 1992.

The bank also formed a joint venture company in bancassurance with CGU plc (via subsidiary now known as Aviva Italia Holding) in 1999.

Sponsorship

The bank was a sponsor of sports team Associazione Sportiva Volley Lube and Fabriano Basket; the venue PalaRossini was named after the bank.