Latest news with #bankmerger
Yahoo
4 days ago
- Business
- Yahoo
Pinnacle, Synovus to combine in $8.6B deal
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Nashville, Tennessee-based Pinnacle Bank and Columbus, Georgia-based Synovus will combine in an all-stock, $8.6 billion deal that's expected to close in the first quarter of 2026, the companies announced Thursday. The transaction marks, by far, the largest bank combination announced since the second Trump administration has taken office – and the highest-profile example of a bank primed to cross the $100 billion-asset threshold amid expected regulatory easing. The combined entity will operate under the Pinnacle name once the transaction closes, and the Pinnacle holding company will move its headquarters to Atlanta, the banks said Thursday. Synovus CEO Kevin Blair will serve as president and CEO of the combined company, while Pinnacle CEO Terry Turner will be chair of the board of directors. That board will comprise 15 directors – eight from Pinnacle and seven from Synovus. Among other anticipated C-suite moves, Pinnacle Chair Rob McCabe will become vice chair and chief banking officer of the combined company. Meanwhile, Synovus CFO Jamie Gregory will serve as CFO of the combined company. Under the deal, Pinnacle will add Synovus' roughly $61 billion in assets to its current $54.8 billion total, and embrace the Georgia bank's 244-branch presence that spans five states. 'This is a strategic expansion, not a market consolidation,' Blair said on a call discussing the transaction. 'The merger creates a complementary footprint that fits together like puzzle pieces.' Market reaction, however, could be dismissed as underwhelming, as shares for Pinnacle and Synovus fell after the announcement. Jeff Davis, managing director of financial advisory firm Mercer Capital, credited the fact that none of the U.S.'s super-regionals were involved as an acquirer. 'Wall Street loves acquisitions that entail a premium for a seller, and Wall Street will have a much more nuanced view to mergers of equals,' Davis told Bloomberg. As it stands, Pinnacle and Synovus shares will be converted into shares of a new Pinnacle parent company at a ratio of 0.5237 Synovus shares per Pinnacle share, representing a value of $61.18 for Synovus shares, or roughly a 10% premium. The deal, though, validates speculation that circulated this week indicating Synovus had drawn interest as a takeover target – a complication Turner noted Thursday. 'We've been through a long few days having to stand on the sidelines while rumors swirled and stocks traded wildly,' Turner said, according to The Atlanta Journal-Constitution. Once the transaction closes, Pinnacle shareholders will own roughly 51.5% of the combined company, and Synovus shareholders will own the remaining 48.5%. 'We are two high-performing institutions with one powerful future,' Blair said in a statement Thursday. 'Our belief in the success of this merger is grounded in a decade of strong results and proven execution from both companies. … Together with Terry and the Pinnacle team, we are primed for continued outperformance, as we are not just combining forces – we are multiplying our impact.' 'First domino' Critically, the deal may represent 'the first domino in a new round of 'rack 'em and stack 'em,'' Michael Ashley Schulman, partner at Running Point Capital Advisors, told Reuters. 'A friendlier regulatory environment may help mint several new trillion‑dollar megabanks over the next decade, figuratively making Wall Street even more competitive,' he said. Indeed, early in President Donald Trump's second term, the $35.3 billion combination of Capital One and Discover had been marked as the go-to test case for what banks could expect from regulators amid a business deal. While banks have proposed perhaps a couple dozen deals since regulators signed off on Capital One-Discover, few transactions surpassed the $1 billion threshold. Notable exceptions include Columbia Banking System's roughly $2 billion acquisition of Pacific Premier, proposed in April, and Huntington Bank's $1.9 billion pending purchase of Veritex, announced last week. In the Pinnacle-Synovus deal, the banking space now has a multibillion-dollar potential template it can observe from start to finish under Trump-era regulators and supervisors. While Biden-era holdovers such as Federal Reserve Gov. Michael Barr have warned policymakers to 'resist the pressure' to deregulate, his successor as the central bank's vice chair for supervision, Michelle Bowman, ran point this week on a conference that gauged expectations on banks' capital framework. Meanwhile, regulators like Federal Deposit Insurance Corp. Acting Chair Travis Hill have long bemoaned the lengthy approval timelines for proposed deals. Indeed, where a combination like Capital One-Discover took 14 months for the Fed and Office of the Comptroller of the Currency to approve, Pinnacle and Synovus are hedging their bets on an eight-month timeline. Then there's the hotly contested Sun Belt in which the combination will play out. Synovus had already stated its intention to hire roughly 85 relationship managers by 2027 in markets such as Atlanta; Miami, Orlando and Tampa, Florida; Birmingham, Alabama; and Charleston and Columbia, South Carolina. Add to that the pressure cooker into which Fifth Third, PNC, Huntington, Citizens and Bank of America are vying to expand. Turner on Thursday said he expects the deal will 'extend our legacy of building share in the most attractive markets nationally.' Executives added they are making "significant employment commitments" in Nashville, Atlanta and Columbus, Georgia. Local market leadership, meanwhile, will remain intact, Blair said. "To me, this is so much more compelling than continuing to grow the bank organically," Blair said, according to American Banker. The companies said they expect to realize $250 million in cost savings from the deal, which is estimated to be roughly 21% accretive to Pinnacle's operating earnings per share in 2027. The bank expects to earn back its tangible book value per share in 2.6 years. Recommended Reading TD, BMO adjust their timelines for First Horizon, Bank of the West deals
Yahoo
18-07-2025
- Business
- Yahoo
Jim Cramer on Huntington Bancshares: 'Numbers Look Pretty Darn Good'
Huntington Bancshares Incorporated (NASDAQ:HBAN) is one of the stocks on Jim Cramer's radar. Cramer discussed the firm's acquisition of Veritex during the episode. He commented: 'This morning, we had a real bank merger, one of my favorites, Huntington Bancshares, the Ohio-based regional bank, announced that it's buying the Texas-based regional bank Veritex in an all-stock deal that values the target just under $2 billion. Now, in the grand scheme of things, and this is a small transaction, I didn't even know Veritex, but it helps Huntington grow in Texas, a market where it was already expanding aggressively. A professional banker with a stack of mortgage papers and a pen in hand, ready to make the deal. Huntington Bancshares (NASDAQ:HBAN) provides a broad range of commercial, consumer, and mortgage banking services, along with wealth management, lending, and digital financial solutions. While we acknowledge the potential of HBAN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-07-2025
- Business
- Yahoo
HarborOne-Eastern Bank merger: Is your Brockton-area branch one of 13 slated to close?
Eastern Bank and Brockton-born HarborOne Bank aim to close 13 branches between them as part of their merger. That would leave 126 branch locations for the merged company in Massachusetts and Rhode Island. Pending regulatory approval, the 13 branches will likely begin closing in February 2026, said Eastern Bank President and CEO Quincy Miller. He said the banks are consolidating where branches are close to each other. "Our approach is what's best for the customers and I think we take a different approach than maybe some of the other banks," Miller said in a July 11 interview with The Enterprise. In Brockton, the Eastern Bank branch and drive-through at 276 Quincy St. would close. All HarborOne locations in the city would remain open. That will mean, post-merger, Brockton would have four full-service branches: 1265 Belmont St., 443 Belmont St., 68 Legion Parkway and 1601 Main St. Close to the Brockton line is another branch that's staying open: 472 Foundry St., North Easton Impact of merger What will HarborOne's merger with Eastern Bank mean for Brockton customers, employees? The combined bank will be branded as Eastern Bank. Miller expects signs at the HarborOne branches to be changed to Eastern Bank by end of March 2026. 64 Broad St., Boston14 West Broadway, Boston1608 Commonwealth Ave., Brighton473 Harvard St., Brookline1739 Massachusetts Ave., CambridgeOne Chestnut Place, Quincy101 Dudley St., Providence, RI 110 Main St., Bridgewater276 Quincy St., Brockton45 Main St., Lakeville71 Carver Road, West Plymouth35 Memorial Parkway, Randolph397 Washington St., Stoughton Source: Legal ad in Brockton Enterprise, June 27, 2025 Outdoor shower Brockton home sells for $610K; Bridgewater home sells for $533K If you use a particular branch that's closing, you can check the HarborOne or Eastern branch locators to see the nearest branch. In more than 95% of cases, Miller said, a branch within a mile of it will be staying open. The merger is expected to close Oct. 31, assuming that regulators agree and that HarborOne stockholders vote "yes." If you're reading this the morning of Monday, July 14, you have until the end of the day to file comments about the proposal with financial regulators. Here's how, according a legal ad placed in The Enterprise: File your comments in writing with the regional director of the Federally Insured Deposit Corp. at the FDIC Boston-area office, 15 Braintree Hill Office Park, Braintree, MA 02184. When bank leaders announced the merger proposal in April, they said the company would offer jobs to any employees currently at branches on the closure list. Miller confirmed that's still the plan. Some employees may discover, he said, that there's a branch that's an easier commute for them and request transfers. Wondering about a vacant building, construction site or other sign of change in or near Brockton? I'm veteran local reporter Chris Helms and I'll help you find out. Email your questions and tips to CHelms@ or connect on X at @HelmsNews. This article originally appeared on The Enterprise: Brockton Eastern Bank branch closing as part of HarborOne merger Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
