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Pinnacle Financial Partners to combine with Synovus Financial Corp. into one company

Pinnacle Financial Partners and Synovus Financial Corp Announce Merger to Form Major Southeastern Banking Powerhouse

In a landmark deal poised to reshape the regional banking landscape in the Southeastern United States, Nashville-based Pinnacle Financial Partners Inc. and Columbus, Georgia-based Synovus Financial Corp have announced their intention to combine forces through an all-stock merger. The agreement, unveiled on July 24, 2025, will create a new entity with combined assets exceeding $100 billion, positioning the merged company as one of the largest community-focused banks in the region. This strategic union comes at a time when the banking industry is grappling with economic uncertainties, rising interest rates, and the need for scale to compete with national giants like JPMorgan Chase and Bank of America.

The merger, valued at approximately $8.5 billion based on current stock prices, will see Synovus shareholders receiving 1.05 shares of Pinnacle common stock for each share of Synovus they own. This exchange ratio implies a premium of about 15% over Synovus's closing price prior to the announcement, reflecting the confidence both boards have in the synergies and growth potential of the combined organization. Upon completion, expected in the first quarter of 2026 pending regulatory approvals and shareholder votes, the new bank will operate under the Pinnacle Financial Partners name, with its headquarters remaining in Nashville. However, Synovus's strong presence in Georgia, Alabama, Florida, South Carolina, and Tennessee will be preserved, ensuring a seamless integration of brands and services.

Pinnacle Financial Partners, founded in 2000, has grown rapidly from a single-branch operation in Nashville to a network of over 160 branches across eight states, primarily in the Southeast and Mid-Atlantic. The bank has built its reputation on a client-centric model, emphasizing personalized service, commercial lending, and wealth management. With assets of around $48 billion as of the latest quarter, Pinnacle has consistently outperformed peers in metrics like return on assets and efficiency ratios, thanks to its focus on high-growth markets like Nashville, Charlotte, and Memphis. CEO M. Terry Turner, who has led the company since its inception, highlighted the merger as a natural evolution. "This combination unites two like-minded institutions with complementary strengths," Turner said in a press conference. "Synovus brings a rich heritage and deep roots in key markets, while Pinnacle offers innovative technology and a proven track record of organic growth. Together, we'll deliver unparalleled value to our clients, associates, and communities."

Synovus Financial Corp, with roots dating back to 1888 as the Columbus Bank and Trust Company, has evolved into a diversified financial services provider with assets nearing $60 billion. Operating primarily under the Synovus Bank brand, it serves customers through more than 280 branches in five states, excelling in retail banking, mortgage services, and corporate lending. The company has weathered various economic cycles, including the 2008 financial crisis, by maintaining a conservative balance sheet and strong capital positions. Synovus Chairman and CEO Kevin Blair expressed enthusiasm about the deal, noting, "Joining forces with Pinnacle allows us to accelerate our strategic priorities, enhance our digital capabilities, and expand our footprint in dynamic markets. This isn't just a merger; it's a partnership that will drive innovation and create opportunities for all stakeholders."

The combined entity will boast a robust loan portfolio exceeding $70 billion, with a balanced mix of commercial, consumer, and real estate lending. Deposits are projected to surpass $80 billion, providing a stable funding base amid fluctuating interest rates. Analysts anticipate significant cost synergies, estimated at $200 million annually within the first two years, achieved through branch consolidations, back-office efficiencies, and technology integrations. Revenue synergies could add another $150 million, driven by cross-selling opportunities in wealth management, treasury services, and small business lending. The merger will also enhance the bank's competitive edge in talent acquisition, as the larger scale attracts top professionals in a tight labor market.

From a geographic perspective, the deal creates a formidable presence across the Southeast. Pinnacle's strongholds in Tennessee, North Carolina, and Virginia will complement Synovus's dominance in Georgia and Florida, reducing overlap to just a handful of markets like Atlanta and Chattanooga. This expanded footprint positions the new bank to capitalize on population growth in Sun Belt states, where migration trends and economic development are fueling demand for banking services. For instance, the merged company will have enhanced capabilities to support booming industries such as healthcare in Nashville, logistics in Atlanta, and tourism in Florida.

Market reactions have been positive, with Pinnacle's shares rising 8% and Synovus's surging 12% in after-hours trading following the announcement. Wall Street analysts, including those from firms like Keefe, Bruyette & Woods and Stephens Inc., have upgraded their ratings, citing the merger's potential to deliver earnings accretion within the first year. "This is a textbook example of a strategic merger in regional banking," noted banking analyst John Pancari of Evercore ISI. "Both companies have clean balance sheets, minimal credit issues, and cultures that align well. In an era of consolidation, this deal sets a benchmark for others."

However, the path forward isn't without challenges. Regulatory scrutiny from bodies like the Federal Reserve, FDIC, and Department of Justice will be intense, particularly regarding antitrust concerns in overlapping markets. The banks have committed to minimal branch closures—fewer than 20 across the network—to preserve community access and jobs. Employee retention is another focus, with both CEOs pledging no widespread layoffs and offering retention bonuses to key staff. Integration risks, such as merging IT systems and harmonizing corporate cultures, will require careful management. Pinnacle's entrepreneurial spirit and Synovus's traditional approach must blend effectively to avoid disruptions.

The merger also underscores broader trends in the banking sector. Post the 2023 regional banking crisis involving failures like Silicon Valley Bank, institutions are seeking scale to bolster resilience against economic shocks. Rising compliance costs, cybersecurity threats, and the shift to digital banking demand investments that smaller banks struggle to afford alone. By combining, Pinnacle and Synovus aim to invest more in fintech innovations, such as AI-driven lending platforms and mobile apps, to attract younger demographics and compete with neobanks like Chime.

Community impact is a key narrative in the announcement. Both banks have strong philanthropic records—Pinnacle through its support of education and arts in Tennessee, and Synovus via initiatives in affordable housing and financial literacy in Georgia. The merged entity plans to establish a $50 million community investment fund to support underserved areas, emphasizing their commitment to "banking with a purpose." Local leaders have welcomed the news; Nashville Mayor Freddie O'Connell stated, "This merger reinforces Nashville's status as a financial hub while ensuring continued investment in our communities."

Looking ahead, the new Pinnacle Financial Partners will target mid-teens return on tangible common equity, aiming for sustained growth through organic expansion and potential bolt-on acquisitions. With a pro forma market capitalization of over $15 billion, it will rank among the top 30 U.S. banks by assets, enhancing its visibility to investors and rating agencies. Debt ratings are expected to remain stable, with Moody's and S&P affirming their outlooks.

In summary, this merger represents more than a financial transaction; it's a fusion of histories, visions, and ambitions that could redefine regional banking in the Southeast. As Turner aptly put it, "We're not just building a bigger bank; we're building a better one." Stakeholders will watch closely as the deal progresses, hopeful that it delivers on its promises of enhanced service, innovation, and community support in an ever-evolving industry.

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Read the Full Knoxville News Sentinel Article at:
[ https://www.knoxnews.com/story/money/business/2025/07/24/pinnacle-financial-partners-synovus-financial-corp-combining-into-one-company/85364362007/ ]