CapitalMark bank merger approved by regulators

Craig Holley, Chairman, President, and CEO of CapitalMark Bank & Trust
Craig Holley, Chairman, President, and CEO of CapitalMark Bank & Trust

State regulators today approved the merger of CapitalMark Bank & Trust in Chattanooga with the Nashville-based Pinnacle Financial Partners Inc.

Pinnacle, one of the fastest growing independent banks in Tennessee, gained the OK of the Tennessee Department of Financial Institutions today for its proposed acquisitions of both CapitalMark in Chattanooga and Magna Bank in Memphis.

Subject to approval by the shareholders of both CapitalMark and Magna, as well as satisfaction of other closing conditions, Pinnacle anticipates that the bank mergers should become effective during the third quarter of 2015. The shareholder meetings for CapitalMark and Magna are scheduled to occur in late July.

"This is a significant milestone for all of us at Pinnacle," M. Terry Turner, Pinnacle's president and chief executive officer, said in a statement today. "We believe all of our constituencies will benefit from these mergers - associates, clients, communities and shareholders. We are pleased with the integration progress thus far, and I have been very impressed with the dialogue that is occurring between the associates at the three banks.

When the operations of the three institutions are combined, Pinnacle will add another eight locations, including offices in the Tennessee counties of Shelby, Hamilton, Bradley and Anderson, all of which are new to Pinnacle's footprint. Turner said CapitalMark and Magna clients will be able to access a wider array of services, including treasury management, trust, investment and insurance.

Pinnacle was started in 2000 and has grown its assets to more than $6.3 billion.

CapitalMark, which began in 2006, operates four office and has assets of $968 million.

Magna Bank, which has 14 offices in the Memphis area, has assets of $595 million.

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