- A major $8.6 billion all-stock deal will combine two top regional banks.
- The new company will have over $115 billion in total assets.
- Headquarters will be in Atlanta and Nashville, with new leadership from both sides.
In a major move in the banking industry, Pinnacle Financial Partners and Synovus Financial Corp. have agreed to merge. The deal is valued at $8.6 billion and will be completed through an all-stock transaction. This combination will create a powerful regional bank with a large presence across several southeastern U.S. states.
The new company will be one of the largest regional banks in the Southeast. It will have more than $115 billion in combined assets. The bank will be strongly positioned in fast-growing states like Georgia, Florida, Tennessee, and both North and South Carolina.
Ownership Split and Deal Terms
As part of the agreement, shareholders of Synovus will receive 0.5237 shares of the new combined company for each Synovus share they currently own. This offer is about 10% higher than Synovus’ most recent stock price before the deal was announced.
After the merger is completed, Pinnacle shareholders will own about 51.5% of the new company. Meanwhile, Synovus shareholders will control the remaining 48.5%. This close split shows how both companies are coming together as near-equal partners.
Leadership Roles in the New Bank
The new bank will use the names Pinnacle Financial Partners and Pinnacle Bank. Leadership will come from both companies. Kevin Blair, the current Chairman and CEO of Synovus, will become the new company’s President and Chief Executive Officer. Terry Turner, who leads Pinnacle now, will take over as Chairman of the Board. Jamie Gregory from Synovus will become the Chief Financial Officer (CFO) of the merged company.
Blair stated that the two banks share similar goals and high standards. He described the future of the combined company as “strong and full of potential.” On a conference call, Turner added that this is one of the most promising bank mergers he has seen in years.
New Headquarters and Market Reach
After the deal closes, the company will operate from two key cities. Pinnacle Financial’s main office will stay in Atlanta, Georgia. Pinnacle Bank’s headquarters will remain in Nashville, Tennessee. These cities are key financial centers in the Southeast and will help the bank stay close to its main markets.
The combined company will be a market leader. It will hold one of the top five positions in 10 of the 15 biggest metro areas in the Southeast. This will give the bank a strong customer base and allow it to compete with larger national banks.
Earnings Growth and Cost Savings
The merger is expected to boost Pinnacle’s earnings by about 21% by the year 2027. In financial terms, this is called being “accretive” to earnings. Analysts predict that the value of the combined company’s assets will grow quickly after the merger.
In addition, the new company is expecting to save $250 million in costs after merging. These savings will come from reducing duplicate departments, improving technology, and sharing resources. This will help the bank operate more efficiently and serve customers better.
The “tangible book value earnback period” is estimated to be about 2.6 years. This means that the financial benefit of the merger should be clear within a short time after the deal is completed.
Why the Merger Matters Now
This deal comes at a time when smaller and regional banks are under pressure. Financial technology companies (called “fintechs”) and large national banks are taking market share. These competitors offer digital services that attract younger and more tech-savvy customers.
Regional banks, like Pinnacle and Synovus, need to grow and improve to stay competitive. By joining forces, these two banks can combine their strengths, expand their services, and protect their market positions.
Recent Performance of Both Companies
Both Pinnacle and Synovus have shown strong financial performance recently. Synovus reported a 28% increase in adjusted earnings per share compared to the same quarter last year. Pinnacle also saw solid growth, with earnings per share rising by 22.7% over the same period.
These numbers show that both companies are performing well on their own. This makes the merger a strategic move rather than a rescue effort. Instead of merging to survive, they are merging to grow stronger.
Approval Process and Timeline
Before the merger becomes official, it needs to be approved by government regulators and the shareholders of both companies. This process can take several months.
If everything goes smoothly, the deal is expected to close in the first quarter of 2026. Once completed, the new company’s stock will trade on the New York Stock Exchange under the symbol “PNFP.”
Final Thoughts
This merger between Pinnacle Financial Partners and Synovus Financial Corp. marks one of the biggest banking deals of the year. It brings together two strong regional banks to form a powerhouse in the Southeast. The combined strength, leadership, and market reach of the new company could change the banking landscape in the region.
With shared goals, modern banking tools, and a focus on growth, the future looks bright for this new banking giant. Customers, shareholders, and employees will all be watching closely as this major merger moves forward.