FirstBank halts core migration amid PNC acquisition
PNC to acquire FirstBank for $4.1B
PNC’s acquisition of FirstBank, announced Sept. 8 would see the banks’ full integration by midyear 2026.
The deal, with an estimated value of $4.1 billion, halted FirstBank’s core migration plans, FirstBank Chief Information Officer Christian Winward told Bank Automation News.
“FirstBank was in the process of migrating to Finxact, but that project had not yet been completed,” Winward said.
With the acquisition, $26.8 billion Lakewood, Colo.-based FirstBank will transition away from its internally built legacy core system, he said.
“We know our core system inside and out, which means we can ensure a smooth integration with PNC,” Winward said.
“Our top priority is making sure customers experience a seamless transition, with the same reliability and service they expect from FirstBank, while gaining the added benefits of PNC’s scale and expanded offerings.”
The $556 billion PNC did not name its core provider.
PNC reported an efficiency ratio of 60% in the second quarter, a setback from 58.3% during the same period last year, according to BAN’s Efficiency Ratio Dataset.
FirstBank’s Q2 efficiency ratio clocked in at 56.9%, an improvement from 57.8% during the same period last year, according to BAN’s dataset.
M&A on the rise
The acquisition follows the Sept. 4 announcement of Fiserv’s acquisition of merchant platform CardFree.
The deals support a busy summer of M&A, according to S&P Global’s Aug. 12 U.S. Bank M&A Activity report. In July, 26 bank deals were announced, the most M&A activity since June 2021, when 27 deals were announced.
Deals from the summer include:
- Pinnacle Financial Partners to acquire Synovus Financial for $7.9 billion;
- Huntington to acquire Veritex Holdings for $1.9 billion;
- Commerce Bancshares to acquire FineMark Holdings for $580.9 million; and
- Bank First to acquire Centre 1 Bancorp for $106 million.
Financial institutions attribute expansion of footprint, product and technology to their acquisition strategies.
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