PNC Financial to Acquire FirstBank for $4.1 Billion
NEW YORK – PNC Financial announced plans on Monday to purchase Colorado-based FirstBank for $4.1 billion. This acquisition positions PNC significantly within the Colorado banking sector, as well as in Arizona.
FirstBank, based in Lakewood, operates under the brand 1stbank and boasts around 120 retail branches with total assets of $26.7 billion. Although the bank is privately held, its shareholders, who own approximately 45.7% of the shares, have already approved the merger.
Bill Demchuk, chairman and CEO of PNC, expressed confidence in the merger, stating, “Its deep retail deposit base, Colorado’s unparalleled branch network, Arizona presence and trustworthy community relationships make PNC’s ideal partner.”
Over the past few years, PNC has successfully executed a number of acquisitions, enhancing its stature as a key player in the banking industry. It recently highlighted its ambition to be referred to as a “coastal to coast bank franchise.” Notably, PNC obtained the U.S. division of BBVA for $11.6 billion shortly after the onset of the pandemic and expanded its branch presence in various markets, particularly in the Southwest.
With FirstBank’s acquisition, PNC will dominate the Denver market, adding more than 70 branches in Arizona to its portfolio and increasing its total assets to around $575 billion.
This move brings PNC closer to competitors like Capital One and U.S. Bank, who have a strong foothold in the Colorado and Arizona markets.
Alex Overstrom, head of retail banking at PNC, mentioned that the bank might explore further acquisitions to continue expanding its franchise. He noted, “We’re not slowing down organic growth, but we might think that opportunities will be created.”
PNC is typically classified as a super regional bank, a term used for institutions that are sizable—often having hundreds of billions in assets and numerous branches—but they still face competition from major banks like Wells Fargo, Bank of America, and JPMorgan Chase.
In recent years, super regional banks have expanded significantly to better contend with larger banking firms on various fronts. For instance, Capital One’s acquisition of Discover Financial helped form the largest credit card company in the U.S., and Huntington BankShares purchased TCF in Detroit in 2021.
