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PNC to Acquire FirstBank in $4.1B Deal, Expand in Colorado & Arizona

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Key Takeaways

  • PNC agrees to acquire FirstBank in a $4.1B cash-and-stock deal, closing expected in early 2026.
  • FirstBank adds $26.8B in assets, 95 branches, and a strong retail banking presence in Colorado.
  • PNC will triple its Colorado footprint to 120 branches and expand to 70 locations in Arizona.

The PNC Financial Services Group, Inc. (PNC - Free Report) has entered into a definitive agreement to acquire FirstBank Holding Company, including its subsidiary FirstBank, in a cash-and-stock transaction valued at approximately $4.1 billion. The move supports PNC’s strategy of scaling its franchise and expanding in high-growth markets, particularly in Colorado and Arizona.

FirstBank, with $26.8 billion in assets as of June 30, 2025, operates 95 branches and holds a leading position in Colorado’s retail banking sector, along with a growing presence in Arizona.

Terms & Financial Details of the Deal

Per the agreement, shareholders of FirstBank will be entitled to receive merger consideration in either PNC common stock or in cash, subject to certain limitations. The aggregate consideration consists of approximately 13.9 million shares of PNC common stock and $1.2 billion in cash.

The transaction has been approved by the board of directors of both PNC Financial and FirstBank, which is anticipated to close in early 2026, subject to regulatory approvals and shareholder consent. Further, shareholders controlling approximately 45.7% of FirstBank’s shares have entered into customary voting and supported agreements in favor of the transaction.

Following completion, FirstBank will merge into PNC Bank, N.A., and its branches will be rebranded under the PNC Bank name once customer accounts transition to PNC’s platform. Further, the company has committed to retaining all FirstBank branches and frontline employees, ensuring seamless service for customers and communities.

Rationale Behind PNC-FirstBank’s Deal

Over the past decade, PNC Financial has consistently delivered double-digit revenue growth in new and acquired markets, supported by investments in technology, marketing and branch expansion. The deal with FirstBank aligns with PNC’s broader strategy of scaling its franchise through organic growth and strategic acquisition.

With this acquisition, PNC will more than triple its Colorado branch footprint to 120, making Denver one of its largest markets for commercial and business banking. PNC will become the leading bank in Denver by retail deposit share (20%) and branch share (14%).

The deal also expands PNC’s presence in Arizona, bringing its network to more than 70 branches with the addition of 13 FirstBank branches. Leveraging FirstBanks’ strong local customer relationships, PNC plans to further grow its corporate and private banking business in both Colorado and Arizona. 

William S. Demchak, chairman and chief executive officer of PNC Financial, stated, “FirstBank is the standout branch banking franchise in Colorado and Arizona, with a proud legacy built over generations by its founders, management, and employees.” Demchak further highlighted, “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.”

PNC’s Price Performance & Zacks Rank

PNC's shares have rallied 14% over the past year compared with 46.8% growth for the industry.

Zacks Investment Research
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At present, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Steps Taken by Other Finance Firms

Last month, The Carlyle Group Inc. (CG - Free Report) announced an agreement to acquire intelliflo from Invesco Ltd. (IVZ - Free Report) as part of its strategy to deepen exposure to financial software.

The total purchase price is valued at up to $200 million. This includes $135 million payable at closing, which is expected in the fourth quarter of 2025, and up to an additional $65 million in potential future earn-outs. The transaction with IVZ’s intelliflo is expected to accelerate CG’s growth in wealthtech across the UK, the United States, and Australia.


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