FirstBank Holding Company, the largest independent financial institution in Colorado with $26.8 billion in assets, has agreed to be acquired by PNC Financial Services Group in Pennsylvania for $4.1 billion.
The transaction has been approved by the boards of directors of both PNC and FirstBank Holding Company, consisting of around 13.9 million shares of PNC common stock, and a cash payment of $1.2 billion.
FirstBank shareholders holding approximately 45.7% of the company’s shares have already entered into voting and support agreements in favour of the deal, which PNC says is expected to close “in early 2026”, subject to regulatory approval.
Once closed, PNC will merge FirstBank, including its 95 branch network across Colorado and Arizona, into its primary banking subsidiary PNC Bank NA.
Kevin Classen, who assumed the role of FirstBank CEO following the departure of Jim Reuter in March 2024, will transition to the position of Colorado regional president and mountain territory executive at PNC, with a remit also covering Arizona and Utah. All customer-facing branch teams will be retained.
PNC is in line to become the largest bank in the Denver market through the deal, with a forecast retail deposit share of 20%, while the addition of FirstBank is expected to more than triple its state-wide branch network, and increase its total assets to around $575 billion.
William Demchak, chairman and CEO of PNC, describes FirstBank as “the standout branch banking franchise in Colorado and Arizona”, citing the bank’s “deep retail deposit base, unrivalled branch network in Colorado, growing presence in Arizona, and trusted community relationships”.
Founded in 1963 and headquartered in Lakewood, FirstBank covers both retail and commercial banking services, providing consumer deposit accounts, home equity loans and mortgages, alongside business financing, commercial real estate loans and treasury management services.
FirstBank is especially noted for its digital banking prowess, overhauling its 35-year-old legacy mainframes to the Finxact Core platform during the height of the global pandemic in 2020, with online services to now be converted to the PNC platform.
The bank stands as PNC’s second major acquisition in recent memory, following a deal for the US subsidiary of Spanish banking group BBVA, completed in June 2021 for $11.6 billion. PNC more recently acquired alternative asset placement firm Aqueduct in May for an undisclosed sum.
Source: https://www.fintechfutures.com/
