Pinnacle, Synovus Stocks Slide After-Hours On $8.6B Merger News — But Retail’s Not Spooked Yet

Pinnacle Financial Partners (PNFP) and Synovus Financial (SNV) stocks declined in extended trading on Thursday after the banks announced a merger in an $8.6 billion all-stock transaction aimed at strengthening their presence in the lucrative southeastern U.S.

Under the deal terms, shares of Synovus and Pinnacle shareholders will be converted into shares of a new Pinnacle parent company based on a fixed exchange ratio. It values Synovus shares at $61.18 apiece and represents a 10% premium to the stock price after the close on Monday. Synovus stock rose on Tuesday after a report indicated that the bank was exploring a potential sale.

Pinnacle’s stock slipped 4% in extended trading, while Synovus' stock was down 7.4%. Both stocks had fallen nearly 9% before paring losses.

According to a Bloomberg News report, Jeff Davis, managing director of financial advisory firm Mercer Capital, noted that the decline was partly due to investors expecting both lenders to draw interest from larger regional banks, which would likely result in more substantial premiums than a combination of two smaller companies of similar size.

Retail sentiment on Stocktwits for both Pinnacle and Synovus was ‘bullish’ at the time of writing.

Robust economic and population growth has been drawing large regional lenders to the southeastern U.S. The two banks have branches scattered across the region, with billions of dollars in assets.

“The combined company is positioned to win in the most attractive and high-growth markets in the U.S. These markets have a deposit-weighted projected household growth of 4.6% (2025-2030), which is the highest among peers and approximately 170% of the national average,” the two lenders said.

The deal is expected to close in the first quarter of 2026, pending receipt of the necessary permits. U.S. banking deals are expected to see a spike as the Trump administration has promised to be more friendly to larger corporate mergers.

Synovus CEO Kevin Blair will lead the new company as CEO and President, while Pinnacle CEO Terry Turner will serve as Chairman.

Pinnacle Financial stock has risen 8.8% this year, while Synovus is up 22.3%.

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