BY Richard Summerfield
American financial services firm PNC Financial Services has agreed to acquire its smaller rival FirstBank Holding in a $4.1bn cash-and-stock deal.
Under the terms of the deal, FirstBank stockholders will be entitled to elect to receive the merger consideration in PNC common stock or in cash, subject to certain limitations. The aggregate consideration is comprised of a fixed number of approximately 13.9 million shares of PNC common stock and $1.2bn in cash and implies a transaction value of $4.1bn.
The boards of directors of both PNC and FirstBank Holding Company have approved the transaction, which is expected to close in early 2026, subject to receipt of all required approvals and other customary closing conditions. Following the closing, FirstBank will be merged into PNC Bank, N.A. when PNC is prepared to convert FirstBank customers to the PNC platform, with FirstBank branches assuming the PNC Bank name.
“FirstBank is the standout branch banking franchise in Colorado and Arizona, with a proud legacy built over generations by its founders, management, and employees,” said William S. Demchak, chairman and chief executive of PNC. “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.”
“For decades, FirstBank has been proud to serve Colorado and Arizona with a strong community focus, deep customer relationships and dedicated commitment to our employees,” said Kevin Classen, chief executive of FirstBank. “In PNC, we have found a partner that not only values this legacy but is committed to building on it. Their scale, technology and breadth of financial services will allow us to offer even more to our customers, while ensuring that our employees and communities continue to thrive.”
Upon completion, PNC plans to retain all of FirstBank’s branches and FirstBank’s customer-facing branch teams, ensuring continuity for customers, employees and the communities FirstBank serves.
FirstBank, which began offering banking services in 1963, manages $26.8bn in assets and operates 95 branches. The deal will bring PNC closer to $600bn in assets. PNC was formed in 1983 from the merger of Pittsburgh National Corporation and Provident National Corporation. It has $559bn in assets and operates about 2300 branches providing a mix of consumer and commercial banking services. It is smaller than the country’s four biggest banks – Chase, Bank of America, Citigroup and Wells Fargo, but larger than most regional banks, leading some to call it a ‘super-regional’.
News: PNC strengthens Colorado, Arizona presence with $4.1 billion FirstBank deal