- Key Insight: PNC's latest acquisition agreement is part of a larger strategy to significantly scale up its presence.
- What's at Stake: The deal is part of a larger trend of increased bank M&A activity in 2025.
- Forward Look: PNC's banking footprint in Colorado and Arizona will more than triple as part of the transaction.
The Pittsburgh-based bank announced Monday that it has agreed to buy FirstBank Holding Company in a cash-and-stock deal valued at $4.1 billion. PNC's purchase of the $26.8 billion-asset bank will significantly expand its footprint in Colorado and Arizona, where FirstBank operates 82 and 13 branches, respectively.
Chairman and CEO Bill Demchak, in a prepared statement, described FirstBank's franchise in the two states as "standout."
"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," Demchak said in the Monday morning statement.
The company plans to retain all 95 of FirstBank's branches and its customer-facing teams. It expects the transaction to close in the first quarter of 2026.
PNC, which has $559 billion of assets, has ambitiously targeted growth for years. The proposed acquisition of FirstBank is the company's first bank deal since it bought BBVA USA in 2021 — a massive deal that skyrocketed its presence in the South and Southeast.
The FirstBank transaction seems to be out of the same playbook. The combination will more than triple PNC's branch footprint in Colorado, and Denver will become one of the bank's largest markets for commercial and business banking. In Arizona, the bank's branch count will grow to more than 70.
PNC also plans to expand corporate and private banking operations in the Colorado and Arizona markets, "building on FirstBank's local relationships."
"In PNC, we have found a partner that not only values this legacy but is committed to building on it," FirstBank CEO Kevin Classen said in a prepared statement Monday. "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."
Classen will become PNC's Colorado Regional President and Mountain Territory Executive, covering a region that also includes Arizona and Utah.
PNC said the addition is part of its strategy to "scale its franchise through organic growth and strategic acquisition."
The boards of both companies have approved the deal, and PNC expects to integrate the systems by June 2026. PNC plans to pay for FirstBank with a combination of nearly 14 million shares of its common stock — currently valued at about $204 each — and $1.2 billion in cash.
PNC said the deal should be immediately accretive to earnings, with roughly a 25% internal rate of return. The bank also estimates that the transaction will result in 3.8% tangible book value dilution, with an earnback in 3.3 years.
FirstBank, which ranked second in its asset-size tier on
Prior to 2025, bank merger-and-acquisition activity had cooled, thanks to factors that included the high interest-rate environment and less acquisition-friendly regulators. Bank acquisitions have rebounded this year, with more than 100 deals announced .
Additionally, transactions have been closing quicker than before, as Trump administration regulators look at bank combinations more positively.
