U.S. bank PNC Financial (PNC) is buying privately held FirstBank Holding in a $4.1 billion cash-and-stock deal.
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The acquisition is expected to close in early 2026 and will bring PNC Financial closer to $600 billion in assets under management (AUM). The purchase of FirstBank also narrows PNC Financial’s gap with rival regional lenders such as U.S. Bancorp (USB).
Importantly, the deal also helps PNC to expand in the western U.S., notably in the states of Colorado and Arizona. Shares of Pittsburgh-based PNC fell nearly 1% on news of the FirstBank purchase. The deal furthers consolidation among U.S. regional and retail banks that are looking to grow in size and boost their profits.
Consolidation Wave
PNC’s branch network in Colorado alone will more than triple to 120 locations once the FirstBank acquisition is finalized. PNC currently has a strong network on the U.S. East Coast but is looking to expand westward.
Wall Street is gearing up for potential mergers and acquisitions (M&A) among smaller regional lenders and primarily retail banks as the administration of U.S. President Donald Trump welcomes industry consolidation and economies of scale.
In July, regional lenders Pinnacle Financial Partners (PNFP) and Synovus Financial (SNV) agreed to combine in an $8.6 billion deal. Comerica (CMA), another regional lender with $78 billion in assets, is being pushed to sell itself by an activist shareholder, though no deal has been announced.
Is PNC Stock a Buy?
The stock of PNC Financial has a consensus Moderate Buy rating among 17 Wall Street analysts. That rating is based on 12 Buy, four Hold, and one Sell recommendations issued in the last three months. The average PNC price target of $213.71 implies 5.90% upside from current levels.
