PNC to buy smaller peer FirstBank for $4.1bn

(Sharecast News) - Pittsburgh-based bank PNC Financial Services on Monday announced the $4.1bn acquisition of smaller peer FirstBank, expanding its presence in the Colorado and Arizona regions. The deal will see PNC, which operates around 2,200 branches across nearly 30 US states, more than treble its brand network in Colorado to 120, with the bank set to be come the market leader in capital city Denver in terms of retail deposit share and branch numbers.

FirstBank operates 95 branches in total, 13 of which are in Arizona, with $26.8bn in assets as of 30 June.

The transaction value comprises 13.9m in PNC shares and $1.2bn in cash.

"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 Demchak, PNC's chairman and chief executive.

"Its deep retail deposit base, unrivalled branch network in Colorado, growing presence in Arizona, and trusted community relationships make it an ideal partner for PNC."

PNC share were down 0.7% at $202.95 by 0950 in New York.