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3w ago

PNC to Buy FirstBank for $4.1 Billion to Expand in Colorado and Arizona

Board approvals are in place with an early-2026 closing targeted pending regulatory clearance.

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The logo of PNC Bank, a subsidiary of PNC Financial Services Group, is seen above a branch in Washington, U.S. April 30, 2023. REUTERS/Ashraf Fahim/File Photo
FILE - This is the sign on a PNC Bank in downtown Pittsburgh on Wednesday, Jan. 12, 2022. (AP Photo/Gene J. Puskar, file)
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Overview

  • The consideration consists of approximately 13.9 million PNC shares plus $1.2 billion in cash.
  • The deal would more than triple PNC’s Colorado presence to about 120 branches and lift its Arizona network to over 70, giving it 20% Denver retail deposit share and 14% branch share.
  • PNC plans to retain all FirstBank branches and customer-facing teams, and FirstBank CEO Kevin Classen will become PNC’s Colorado regional president and Mountain Territory executive.
  • FirstBank shareholders holding 45.7% of shares have already voted in favor, and PNC is targeting systems integration by June 2026.
  • PNC forecasts immediate earnings accretion with roughly a 25% IRR and about 3.8% tangible book value dilution with a 3.3-year earnback, positioning the move within a broader rebound in bank mergers.