PNC to buy FirstBank for $4.1 billion, expanding into Colorado and Arizona
Purchase adds 120 branches and $26.7 billion in assets, boosting PNC to roughly $575 billion and making it the largest bank in the Denver market
PNC Financial Services Group said Monday it will acquire Colorado-based FirstBank for $4.1 billion, a move that gives the Pittsburgh-based bank a substantial presence in Colorado and expands its footprint in Arizona.
FirstBank, also known as 1stBank and based in Lakewood, Colorado, operates 120 retail branches and reported $26.7 billion in assets. The bank is privately held; the companies said shareholders who collectively own 45.7% of FirstBank’s stock have already voted in favor of the merger.
"Its deep retail deposit base, unrivaled branch network in Colorado, growing presence in Arizona, and trusted community relationships make it an ideal partner for PNC," said Bill Demchak, chairman and chief executive officer of PNC, in a statement. PNC said the deal will make it the largest bank in the Denver market and add more than 70 branches in Arizona.
The acquisition will increase PNC’s total assets to roughly $575 billion, moving the bank closer in size to rivals such as Capital One and U.S. Bank. PNC has been expanding rapidly in recent years through acquisitions and new branch openings, particularly in the Southwest. The bank bought the U.S. operations of Spain’s Banco Bilbao Vizcaya Argentaria (BBVA) for $11.6 billion shortly after the COVID-19 pandemic.
Alex Overstrom, PNC’s head of retail, said the bank remains focused on organic growth while keeping an eye on additional acquisition opportunities as they arise. "We are not slowing down our organic growth but may consider opportunities as they arise," he said in an interview.
Financial services analysts commonly classify PNC as a "super regional" bank — larger than many regional banks but smaller than the largest national institutions such as JPMorgan Chase, Bank of America and Wells Fargo. Super regionals have been consolidating to increase scale and compete more directly with the largest national banks in retail and commercial banking. Recent industry moves include Capital One’s acquisition of Discover Financial and Huntington Bancshares’ 2021 purchase of TCF Financial.
FirstBank’s network and deposit base appealed to PNC as it seeks to strengthen retail relationships in fast-growing Western markets. U.S. Bank, one of PNC’s nearest competitors in the region, already has an established presence in Colorado and Arizona.
The companies disclosed the shareholder vote in announcing the transaction. The banks did not provide a timetable for closing or detail regulatory steps in Monday’s announcement. The deal is subject to customary closing conditions, the banks said in their filings, and will require any applicable regulatory approvals and satisfaction of other customary closing conditions.