Synovus and Pinnacle Finalize $8.6bn Merger
Two of the Southeast’s banking giants, Synovus Financial and Pinnacle Financial Partners, have successfully completed their merger. The all-stock deal, valued at a whopping $8.6bn, was first announced in July. The merger has resulted in a combined entity that is touted to be the “highest-performing regional bank,” focusing on the high-growth markets in the Southeast.
Financial Profile of the Combined Entity
As of 30th September, the combined entity boasted $117.2bn in assets, $95.7bn in deposits and loans worth $80.4bn. The merged entity plans to operate more than 400 sites in nine states across the Southeast and the Atlantic coast, offering various banking specialties with a nationwide scope. This strategic merger is expected to significantly improve the bank’s footprint in the region.
Headquarters and Brand Consolidation
The combined holding company will be based in Atlanta, Georgia, while the headquarters of the combined bank will be located in Nashville, Tennessee. Despite the merger, the banks will continue to operate under their existing brands until 2027, after which the consolidated brand will be under Pinnacle.
Shareholder’s Stake and Leadership
In terms of the agreed terms, the shares of Synovus and Pinnacle shareholders were converted into shares of a new Pinnacle parent company based on a fixed exchange ratio of 0.5237 Synovus shares per Pinnacle share. This swap ratio translated into a Synovus per share value of $61.18. Consequently, Synovus shareholders now own around 48.5% and Pinnacle shareholders own approximately 51.5% of the merged entity.
The merged group is now led by Kevin Blair, the former chairman, CEO, and president of Synovus, who has assumed the role of president and CEO. Terry Turner, previously the president and CEO of Pinnacle, now chairs the board, supported by seven directors from legacy Pinnacle and seven from Synovus.
Leadership’s Vision for the Merged Entity
Kevin Blair expressed his excitement about leading Pinnacle into the future, with the aim of becoming the fastest-growing and most profitable regional bank in the nation. He emphasized that the merger was about combining strength and heart to deliver “scale with a soul,” staying true to creating long-term and trusted relationships.
Terry Turner also echoed Blair’s sentiment, stating, “We are marrying the best of both our companies together so we can continue to win for our team members, clients, and shareholders.” The leadership’s vision undeniably points towards a focused strategy of growth with purpose, leveraging the strengths of both entities.
The finalized merger between Synovus and Pinnacle marks a significant development in the banking industry in the Southeast. It will be interesting to see how this strategic consolidation impacts their service offerings and market presence in the coming years.
More details about the merger can be found Here.
