Pinnacle Financial Corporation and Morris State Bancshares to Form a United Community Bank
Two significant players in the banking industry, Pinnacle Financial Corporation and Morris State Bancshares, have agreed to merge, creating a community bank based in Georgia, US. The merger has received unanimous approval from the board members of both companies. By joining forces, the companies aim to strengthen their foothold in the banking industry by leveraging their combined resources and years of industry experience.
A Combined Banking Entity
The merger of Pinnacle Financial Corporation and Morris State Bancshares will give birth to a combined entity boasting approximately $3.8 billion in assets, $3.3 billion in deposits, and $2.8 billion in loans, according to financial data up until 30 September 2025. The merged entity will operate 35 branches across various markets in Georgia, thus ensuring a broad geographical coverage and accessibility to customers.
Shareholding and Dividend Arrangements
As per the agreement, each Morris shareholder will receive 0.1095 shares of the combined company’s common stock for each share they currently hold. Furthermore, the shareholders will receive a one-time special cash dividend of $0.54 per share before the transaction’s closing.
Following the completion of the merger, Pinnacle shareholders will own approximately 54% of the combined company, with the remainder held by Morris shareholders. This arrangement ensures a balanced distribution of ownership, reflecting the contributions and assets of both entities.
Executive Statements
Pinnacle’s chairman and CEO, Jackson McConnell, expressed his optimism about the merger, stating, “As we unite our two institutions, we strengthen our ability to serve people and businesses in communities across the state of Georgia. After years of knowing one another and working together on industry issues, we are thrilled to bring our teams together.”
Branch Distribution and Headquarters
The combined entity will include 26 branches of Pinnacle in northeast and eastern Georgia, including locations in Elberton, Gainesville, Athens, and Augusta. It will also incorporate Morris’ nine branches in central and southeastern areas such as Dublin, Macon, Houston County, and Statesboro.
The new community bank will establish its headquarters in Elberton, with staff from both companies continuing to operate from their current offices. This decision ensures continuity in operations and minimizes disruption for both employees and customers.
Rebranding and Trading
As part of their integration process, Pinnacle and Morris plan to introduce a new name and logo before finalizing the merger. The shares of the combined entity will begin trading on the OTCQX market, signaling the start of a new chapter for the newly formed bank.
Management and Closing Details
The board of the merged company will be composed of Pinnacle’s nine directors and eight from Morris. Existing officers from both companies are expected to remain in similar roles after the merger, ensuring a smooth transition and continued leadership.
The transaction is expected to close by the end of the first quarter or early in the second quarter of 2026, pending regulatory and shareholder approvals. Piper Sandler & Co. and Fenimore Kay Harrison have served as financial advisor and legal counsel to Pinnacle, respectively. Meanwhile, Keefe, Bruyette and Woods and Alston & Bird have served as advisor and legal counsel to Morris.
With this merger, Pinnacle Financial Corporation and Morris State Bancshares are set to create a banking entity that can better serve the communities in Georgia, ensuring financial accessibility and strength in an ever-evolving financial landscape. This merger is a testament to the importance of collaboration and strategic growth in the banking industry.
For more details on the merger, click here.
