Banca delle Marche

Banca delle Marche was a regional Italian banking group headquartered in Jesi in the Marche region. Its business was concentrated in retail and commercial banking, with a branch network serving households, small and medium-sized enterprises, local institutions, and businesses across central Italy. The bank’s strongest geographic base was Marche: around 73% of its branches were located there in 2016, after the institution had already been reorganized into its successor entity. The group was created in 1994 through the merger of Cassa di Risparmio della Provincia di Macerata and Cassa di Risparmio di Pesaro. Cassa di Risparmio di Jesi joined the combination in 1995. These savings banks had much older local roots, including institutions established in Jesi and Pesaro during the nineteenth century and a network of predecessor savings banks in Macerata province. The merger reflected the consolidation of historically local, foundation-linked banks into a larger regional institution. During the 1990s and 2000s, Banca delle Marche expanded its regional position through acquisitions and corporate relationships. In 1997 it acquired controlling interests in Cassa di Risparmio di Loreto and Mediocredito Fondiario Centroitalia. It also had minority shareholders from the wider Italian banking sector, including Cariplo and later Sanpaolo IMI. The group developed associated businesses such as Medioleasing, Focus Gestioni SGR, and a bancassurance joint venture established with CGU, now associated with Aviva’s Italian operations. It also supported regional cultural and sporting activities, including sponsorship of sports teams and the naming of the PalaRossini venue in Ancona. The bank later experienced severe asset-quality and capital problems. A capital increase proposed in 2011 and completed in part by 2012 did not prevent its consolidated Tier 1 capital ratio from falling to 5.62% at the end of 2012. After temporary administration by the Bank of Italy, the Ministry of Economy and Finance placed Banca delle Marche under special administration in October 2013. A proposed rescue involving Credito Fondiario and the Italian interbank deposit-protection fund was approved in 2014 but ultimately abandoned amid European Commission scrutiny concerning state-aid rules. On 22 November 2015, the Italian National Resolution Fund resolved the bank under the European Bank Recovery and Resolution Directive. Its viable assets and liabilities were transferred to a new entity, initially called Nuova Banca delle Marche, while impaired assets were moved to a shared bad bank, REV - Gestione Crediti. Existing shareholders and subordinated bondholders were subject to the resolution’s bail-in arrangements. The new bank was later acquired by UBI Banca for a nominal fee, renamed Banca Adriatica in May 2017, and merged into UBI Banca on 23 October 2017. Banca delle Marche therefore survives as a historical banking brand rather than an active standalone institution.

Banca delle Marche emerged from the consolidation of several historic savings banks in the Marche region. Its institutional ancestry included savings banks established in Jesi and Pesaro in the nineteenth century, as well as the savings-bank organizations later combined in Macerata province. The modern group was formed in 1994 through the merger of Cassa di Risparmio della Provincia di Macerata and Cassa di Risparmio di Pesaro. Cassa di Risparmio di Jesi joined the group in 1995, giving the new bank a broader regional footprint and a common identity for formerly separate provincial institutions. The bank pursued expansion during the 1990s. In 1997 it obtained control of Cassa di Risparmio di Loreto and Mediocredito Fondiario Centroitalia. These transactions strengthened its position in local deposits and lending, particularly in Marche. Banca delle Marche also had relationships with larger Italian banking groups. Cariplo held a minority stake during the 1990s, and its successor, Banca Intesa, later sold the remaining position to Banca delle Marche as treasury shares. Sanpaolo IMI acquired a 7% stake in 2003; after the Intesa-Sanpaolo combination, that interest became associated with Intesa Sanpaolo and was later diluted when it did not participate in Banca delle Marche’s 2012 capital increase. The group operated beyond conventional branch banking. Its associated companies included Cassa di Risparmio di Loreto, Medioleasing, and Focus Gestioni SGR. It also created a bancassurance venture with CGU in 1999. Banca delle Marche maintained a strong regional profile through sponsorships, including support for Associazione Sportiva Volley Lube and Fabriano Basket, and through the naming of the PalaRossini sports and events venue. Financial stress became decisive in the early 2010s. The board proposed a substantial capital increase in 2011, and a capital increase of approximately €179.6 million was completed by 2012. Nevertheless, the consolidated Tier 1 ratio stood at only 5.62% at the end of 2012. The bank was temporarily administered by the Bank of Italy in August 2013 and entered special administration under a Ministry of Economy and Finance decree on 15 October 2013. A later plan envisaged support from Credito Fondiario and the Fondo Interbancario di Tutela dei Depositi. Although the Bank of Italy approved the plan in December 2014, it was abandoned in the context of a European Commission investigation into possible state aid. The bank could not be restored as an independent institution. In November 2015, the Italian National Resolution Fund intervened alongside the resolution of three other troubled Italian banks. The viable business was separated from impaired assets. The new good bank, Nuova Banca delle Marche, received provisional capital, while non-performing and other troubled assets were transferred to REV - Gestione Crediti, a shared bad-bank vehicle. The resolution applied bail-in provisions to equity and subordinated debt. The losses caused significant reductions in the net assets of several banking foundations that had formerly held the bank’s shares. In 2016, Medioleasing was absorbed into Nuova Banca delle Marche, while Focus Gestioni SGR entered voluntary liquidation. The resolution authority and the new bank also worked to clean up non-performing exposures before a sale. UBI Banca submitted a binding offer in January 2017 for a nominal fee, subject to further balance-sheet measures and recapitalization. The transaction closed in May 2017, when Nuova Banca delle Marche was renamed Banca Adriatica. The three acquired bridge banks were then prepared for integration, and the merger into UBI Banca was completed on 23 October 2017. The original Banca delle Marche is consequently a defunct brand and legal-era banking institution, with its operations absorbed into UBI Banca.

• 2017

  Acquisition by UBI Banca

  [1]Banca delle Marcheen.wikipedia.org

  UBI Banca acquired the bridge bank, which was renamed Banca Adriatica before its final integration.

• 2017

  Merger into UBI Banca

  [1]Banca delle Marcheen.wikipedia.org

  Banca Adriatica was merged into UBI Banca, ending Banca delle Marche’s existence as a separate banking institution.

• 2015

  Resolution and creation of Nuova Banca delle Marche

  [1]Banca delle Marcheen.wikipedia.org

  The National Resolution Fund separated viable operations from impaired assets and created Nuova Banca delle Marche.

• 2013

  Special administration begins

  [1]Banca delle Marcheen.wikipedia.org

  Following temporary administration by the Bank of Italy, the Ministry of Economy and Finance placed the bank under special administration.

• 2003

  Sanpaolo IMI acquires a minority stake

  [1]Banca delle Marcheen.wikipedia.org

  Sanpaolo IMI purchased a 7% stake in Banca delle Marche.

• 1997

  Regional acquisitions

  [1]Banca delle Marcheen.wikipedia.org

  The group acquired controlling interests in Cassa di Risparmio di Loreto and Mediocredito Fondiario Centroitalia.

• 1995

  Cassa di Risparmio di Jesi joins

  [1]Banca delle Marcheen.wikipedia.org

  Cassa di Risparmio di Jesi joined the newly formed regional banking group.

• 1994

  Banca delle Marche formed

  [1]Banca delle Marcheen.wikipedia.org

  Cassa di Risparmio della Provincia di Macerata and Cassa di Risparmio di Pesaro merged to create Banca delle Marche.

• 1844

  Savings bank founded in Jesi

  [1]Banca delle Marcheen.wikipedia.org

  A savings bank was established in Jesi, the city that later became the headquarters of Banca delle Marche.

• 1841

  Savings bank founded in Pesaro

  [1]Banca delle Marcheen.wikipedia.org

  A predecessor savings bank was established in Pesaro, forming part of the historical institutional lineage later associated with Banca delle Marche.

A locally rooted regional bank serving households, enterprises, and institutions in Marche and neighboring areas, with its identity derived from the consolidation of historic provincial savings banks.

• Banking services

  Retail banking

  The bank provided regional branch-based services for households, including deposits, current accounts, payments, mortgages, and other personal banking products. Its retail franchise was concentrated in Marche, where the historical savings-bank network gave it a strong local presence.

• Business banking

  Commercial and SME banking

  Banca delle Marche financed businesses and institutions across Marche and neighboring areas. Its commercial activity included lending and related banking services for local enterprises, with the group’s regional structure particularly suited to small and medium-sized businesses.

• Leasing

  Medioleasing

  Medioleasing was an associated leasing business of the group. It was absorbed into Nuova Banca delle Marche in 2016 as part of the post-resolution restructuring of the viable banking operations.

• Investment services

  Asset management

  Focus Gestioni SGR operated as the group’s asset-management subsidiary. Following the 2015 resolution, the company entered voluntary liquidation rather than continuing as an independent group business.

• Insurance distribution · 1999

  Bancassurance

  The group entered bancassurance through a joint venture formed in 1999 with CGU, whose relevant Italian operations later became associated with Aviva. The arrangement combined the bank’s distribution network with insurance products.

• Regional sports sponsorships

  Marche · Italy

  Banca delle Marche sponsored Associazione Sportiva Volley Lube and Fabriano Basket, using regional sports partnerships to reinforce its local institutional identity.

  Outcome. The sponsorships are part of the brand’s historical regional profile; no further outcome is specified in the reference material.

  Source

• 2017

  Sale to UBI BancaM&A

  Background

  The resolved bridge bank required further balance-sheet cleanup and recapitalization before a sale.

  Action taken

  UBI Banca submitted and completed a nominal-fee acquisition, after which Nuova Banca delle Marche was renamed Banca Adriatica.

  Aftermath

  Banca Adriatica was merged into UBI Banca on 23 October 2017.

  Acquisition consideration. Nominal €1 bid (January-May 2017)

  Source

• 2016

  Post-resolution operating restructuringStrategy

  Background

  The bridge bank was reorganizing its operating structure before a potential sale.

  Action taken

  Medioleasing was absorbed into Nuova Banca delle Marche, while Focus Gestioni SGR entered voluntary liquidation.

  Aftermath

  The restructuring simplified the successor bank’s corporate perimeter ahead of its sale to UBI Banca.

  Source

• 2015

  Resolution and good-bank/bad-bank separationStrategy

  Background

  The bank could not be recapitalized through the proposed private and deposit-insurance-backed rescue arrangements.

  Action taken

  The National Resolution Fund recapitalized a viable successor, transferred impaired assets to REV - Gestione Crediti, and placed the original institution into liquidation.

  Aftermath

  The new institution operated as Nuova Banca delle Marche, while shareholders and subordinated bondholders were affected by the resolution framework.

  Resolution support for Banca delle Marche. Approximately €840 million for new shares and €1.206 billion for prior losses (22 November 2015)

  Source

• 2011

  Capital increase proposedStrategy

  Background

  The bank faced weakening capital strength and proposed a capital increase ranging from approximately €180.7 million to €212.6 million.

  Action taken

  The board proposed the capital increase, and approximately €179.6 million was subsequently completed.

  Aftermath

  The measure did not prevent the consolidated Tier 1 capital ratio from standing at 5.62% at the end of 2012.

  Capital increase. Approximately €179.6 million completed (2011-2012)

  Source

1. 1Banca delle Marcheen.wikipedia.org