PNC Financial Services has received regulatory approval to proceed with its acquisition of Colorado-based FirstBank. The deal, valued at $4.1 billion, has been authorized by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency (OCC), and the Colorado Division of Banking, as announced in a news release on December 12, 2023.
William S. Demchak, chairman and chief executive officer of PNC, emphasized the significance of this approval, stating, “Final regulatory approval of this acquisition marks an important milestone for PNC as we continue to expand our coast-to-coast franchise and bring our full breadth of capabilities to more customers and communities.” He expressed enthusiasm about welcoming FirstBank’s employees and clients into the PNC family.
The transaction is expected to close on or about January 5, 2026, pending the fulfillment of customary closing conditions. After the acquisition is finalized, PNC plans to integrate FirstBank into its national platform, enhancing its treasury management, payments, and digital banking capabilities. Full customer conversion is anticipated to be completed by mid-2026.
PNC first announced its intention to acquire FirstBank, known as one of the largest privately held lenders in the United States, in September 2023. This acquisition aims to strengthen PNC’s presence in the Rocky Mountain region and the Southwest, particularly in states like Colorado and Arizona.
During a quarterly earnings call in October, Demchak discussed the potential impact of regulatory changes on banking operations. He noted that efforts by federal banking regulators to reduce the regulatory burden could yield significant savings in full-time equivalent (FTE) positions. Although PNC had not quantified the time spent addressing regulatory matters, he estimated that these issues could account for “hundreds and hundreds” of FTEs, taking up a substantial portion of his time with the board.
In related regulatory news, the OCC announced plans to continue its reform efforts in 2026, focusing on liquidity risk management, compliance with the Bank Secrecy Act and anti-money laundering regulations, and community bank regulation. At a recent meeting of the Financial Stability Oversight Council, Comptroller of the Currency Jonathan V. Gould outlined these reforms as a continuation of initiatives launched this year. He stated, “Taken together, these actions represent an initial, but not sufficient, effort to undo discretionary regulatory and supervisory policy choices made after the 2008 crisis that eroded effective supervision and threatened the relevance of the banking system.”
As PNC moves forward with its acquisition of FirstBank, the financial landscape in the Rocky Mountain region is poised for transformation, with potential impacts on customers and the broader banking community. This strategic expansion reflects PNC’s commitment to enhancing its service offerings and operational capabilities across the United States.
