10:20 AM EDT, 09/08/2025 (MT Newswires) -- PNC Financial Services ( PNC ) on Monday agreed to acquire FirstBank's parent company, FirstBank Holding, in a deal valued at about $4.1 billion, as the lender aims to boost its presence in high-growth markets in the US.

The transaction comprises about 13.9 million of PNC Financial's shares and $1.2 billion of cash. Shareholders of FirstBank will have the choice to receive the consideration in stock or in cash, according to a joint statement by the banks.

PNC Financial's shares fell 1.3% in Monday trade.

The deal, which requires approval from regulators, is expected to close early next year. Following completion, FirstBank will be merged into PNC Bank. FirstBank's shareholders owning 45.7% of the lender's stock have agreed to vote in favor of the transaction.

FirstBank, which had $26.8 billion in assets as of June 30, provides commercial and retail banking services across Colorado and Arizona with 95 branches.

"FirstBank is the standout branch banking franchise in Colorado and Arizona," PNC Financial Chief Executive William Demchak said in the statement. "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."

The acquisition reflects PNC Financial's strategy to expand its franchise through organic growth and acquisitions. The deal will add 13 FirstBank branches to PNC Financial in Arizona, strengthening its presence in the state to more than 70 branches. The lender aims to expand its corporate and private banking franchises as well.

PNC Financial's "scale, technology and breadth of financial services will allow us to offer even more to our customers, while ensuring that our employees and communities continue to thrive," FirstBank CEO Kevin Classen said. Classen will become PNC Financial's regional president for Colorado and Mountain Territory executive, according to the statement.

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