PNC To Buy Colorado’s FirstBank for $4.1B In Push To Bolster National Reach: Report

PNC Financial Services Group (PNC) has reportedly agreed to acquire FirstBank Holding in Colorado for $4.1 billion as it positions itself as a coast-to-coast lender in the U.S. to better compete against its rivals. 

PNC Chief Executive Bill Demchak told The Wall Street Journal that the deal accelerates the U.S. bank’s ambitions to strengthen its footprint in the country. Demchak described FirstBank as a “perfect fit,” citing its base of loyal, low-cost retail deposits in markets where PNC also plans to expand its commercial and corporate banking businesses.

The report noted that the agreement would increase PNC’s total assets to just under $600 billion, bringing its size closer to that of rivals such as U.S. Bancorp (USB) and Capital One Financial (COF).

PNC’s stock edged 0.6% higher in pre-market trade. On Stocktwits, retail sentiment around the bank shifted higher into ‘bullish’ territory over the past day, with message volume increasing to ‘high’ levels from ‘normal’.

Under the agreement with FirstBank, PNC would retain about 100 branches in Colorado and Arizona, with assets valued at roughly $27 billion, according to the report. It added that the deal would make PNC the leading bank in Denver by retail deposit and branch share. The report also stated that it’s a market that the bank expects to become one of the largest for its commercial and business operations.

The acquisition is expected to close early next year, after which PNC plans to migrate FirstBank customers to its platform.

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