PNC Purchases Colorado-Based FirstBank for $4.1 Billion

PNC Bank is looking westward with its acquisition of Colorado-based lender FirstBank.

The $4.1 billion deal will make Colorado one of PNC’s top markers in the country, more than tripling its branch network there, according to a Monday (Sept. 8) press release. PNC will become Denver’s top bank in terms of retail deposit and branch share, at respective 20% and 14%.

Denver will also become one of PNC’s biggest markets for commercial and business banking, per the release. The deal also expands PNC’s footprint in Arizona to more than 70 branches, adding 13 FirstBank branches. With the help of FirstBank’s local relationships, PNC plans to expand its corporate and private banking franchises as well.

“FirstBank is the standout branch banking franchise in Colorado and Arizona, with a proud legacy built over generations by its founders, management, and employees,” PNC Chairman and CEO William S. Demchak said in the release. “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.”

A report by The Wall Street Journal notes that the deal gives PNC total assets of just under $600 billion, placing it in the same size category as competitors like U.S. Bank and Capital One.

The report also points out that the acquisition is happening at a time when bank executives and dealmakers are hoping for a wave of industry consolidation under the Trump White House.

The administration is expected to take a more relaxed approach to bank mergers, and dealmaking has begun to pick up.

However, the report added, economic uncertainty, higher interest rates and a regulatory fallout from the previous administration have made some executives more cautious.

PNC said last November that it plans to open 200 new branches in 12 cities over the next five years, while renovating 1,400 existing locations. At the time, the bank had upwards of 2,200 branches around the U.S.

“We’re on a good path in that the new markets and new clients are giving us an organic growth opportunity that we haven’t seen in years,” Demchak said in July during an earnings call.

The bank joins several other U.S. lenders who are investing in brick-and-mortar banking this year. For example, Truist announced last month that it would open 100 new branches as it tries to court a wealthier client base.