Shares of Pinnacle Financial Partners took a sharp hit following news that it will merge with Synovus Financial Corp. in a deal valued at $8.6 billion. This marks the biggest drop for Pinnacle’s stock in over five years. The two banks, both worth roughly $8 billion and serving the southeastern U.S., plan to combine in an all-stock transaction that will create a new parent company.
The merger brings together Pinnacle, based in Nashville, Tennessee, and Synovus, headquartered in Columbus, Georgia. After the deal closes, expected in the first quarter of 2026, Pinnacle shareholders will own about 51.5% of the new company, while Synovus shareholders will hold 48.5%. Synovus shareholders are receiving roughly a 10% premium as part of the arrangement.
Investors seemed surprised by the announcement. Many had hoped one or both banks would attract offers from larger regional players, possibly leading to higher prices. Instead, the plan is a near "merger of equals," which Wall Street often views with more caution. Pinnacle’s stock fell as much as 17% on Friday, and Synovus shares also slid 13%.
Both banks cover overlapping but complementary markets throughout the Southeast, including Tennessee, Georgia, the Carolinas, Florida, Kentucky, and Virginia. The combined company will operate under the Pinnacle name, with Synovus CEO Kevin Blair leading the new entity and Pinnacle founder Terry Turner taking on the chairman role.
The merger comes as regional banks across the Sun Belt race to strengthen their presence amid growing economic and population growth in the area. Larger institutions like PNC and Huntington Bancshares have been expanding their footprints here. This deal is the largest bank merger announced so far this year and reflects the easing of regulatory hurdles for bank consolidations.
Pinnacle is involved in insurance through partnerships offering home, auto, and life products in the region. The new company is expected to boost Pinnacle’s earnings per share by about 21% by 2027, creating value despite the initial drop in stock prices.
Both banks are optimistic about the deal’s benefits. Blair described the merger as joining two puzzle pieces to build a stronger, more focused company in key growth areas. The transaction still needs shareholder and regulatory approvals before it can be completed early next year.