Nashville’s biggest home grown bank acquiring Chattanooga’s fastest growing bank on Friday even as the new combined bank prepares to add another bank in Memphis this fall.
Pinnacle Financial Partners Inc., the parent company of the $6.5 billion-asset Pinnacle Bank in Nashville, signed papers Friday to complete its previously announced purchase of CapitalMark in Chattanooga for about $200 million in stock and cash. The merger was approved in the past month by both regulators and shareholders of CapitalMark, which has grown to nearly $1 billion in assets with only four offices.
Pinnacle also announced Friday that shareholders of Magna Bank in Memphis voted overwhelmingly in favor of the proposed merger of Magna with Pinnacle Bank. That merger is expected to close next month.
At that time Pinnacle will have total assets of more than $8 billion and operate 42 offices in 13 counties, including all four of Tennessee’s urban markets.
“We have planned for quite some time to build a presence in all of Tennessee’s four urban markets, and this merger is the last critical piece of that puzzle,” M. Terry Turner, Pinnacle’s president and chief executive officer, said in a statement.