PNC Financial has informed the Colorado labor department that there could be job losses for up to 777 employees at its corporate offices in Lakewood following the acquisition of FirstBank earlier this year. This potential reduction in workforce is part of the integration process between PNC and FirstBank, which was finalized earlier this year in a significant $4.1 billion deal aimed at expanding PNC’s market reach into Colorado.
A representative from PNC stated that the number of layoffs is a maximum estimate and emphasized that impacted employees are encouraged to seek other job opportunities within the company, with some already having accepted new positions. It was also highlighted that all client-facing roles will be retained, ensuring continuity in customer service throughout the transition period.
The merger, which was officially announced last fall, has led to significant organizational changes primarily in Colorado. The review of roles within both institutions revealed overlaps necessitating these adjustments, according to the spokesperson. “While these decisions are never easy, we believe they will help us more effectively deliver for our clients,” they added.
As part of the integration, PNC plans to convert all of FirstBank’s 95 branches to PNC branding, enlarging its presence in Colorado to a total of 120 branches, hence solidifying its position as one of the leading banks in the Denver area. The company is also focusing on making Denver a strategic location for technology operations, capitalizing on the area’s available talent in the tech sector.
PNC’s integration process is expected to conclude by June 30, which aligns with the timeline set forth in their notification to the labor department. FirstBank, established in 1963, reported assets totaling $26 billion, with loans at $16 billion and deposits at $23 billion at the time the acquisition was finalized.
Despite the integration costs—reported at $98 million in the first quarter, expected to rise to $325 million upon completion—PNC has experienced growth in its average loans, which increased by 7% in the first quarter to reach $23 billion.
In an update last month, customers of FirstBank were informed that their accounts will be migrated to PNC systems starting June 18. However, PNC intends to maintain the FirstBank corporate offices at 12345 West Colfax Ave. operational even after the merger, ensuring a smooth transition for employees still working on-site as they shift to their new roles.
