CapitalMark shareholders OK merger with Pinnacle Bank

Merger expected to close July 31

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

Shareholders of CapitalMark Bank & Trust have voted overwhelmingly in favor of the proposed merger with the Nashville-based Pinnacle Bank, clearing the way for the expected combination of the two Tennessee banking companies by Friday.

Pinnacle Financial Partners Inc., the parent company of one of Tennessee's fastest growing banks, said last Friday that CapitalMark shareholders voted overwhelmingly to approve the sale of the Chattanooga-based firm to Pinnacle. Based upon last week's closing price of Pinnacle, the cash and stock purchase is valued at about $200 million.

Pinnacle said the sale is expected to close July 31, subject to the satisfaction of the remaining closing conditions contained in the merger agreement. At that time, Pinnacle will have total assets of more than $7.5 billion and operate 37 offices in 12 counties, including CapitalMark's branches in Chattanooga, Cleveland and Oak Ridge.

"Our strategy has been to grow rapidly while operating in all of Tennessee's four urban markets, so 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. "CapitalMark has built a very successful franchise in Chattanooga and the surrounding areas, and we are excited to continue that momentum as one firm."

Pinnacle anticipates CapitalMark will begin using the Pinnacle name in March 2016 when the operations of the companies are combined. In the interim, bank officials said clients should continue to bank with CapitalMark as they always have, using their existing checks, ATM/debit cards, and payment coupons until the companies combine their operations.

"Like CapitalMark, Pinnacle performs at an incredibly high level and delivers distinctive service that businesses and their owners truly appreciate," said R. Craig Holley, chairman, president and chief executive officer of CapitalMark. "By joining forces, we will be able to accomplish more, grow more efficiently and realize more value for our shareholders."

Pinnacle is also in the process of buying Magna Bank in Memphis to gain a market presence in all of Tennessee's major metro areas. Regulators approved Pinnacle's acquisitions of CapitalMark and Magna earlier this month.

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