CompaniesPinnacle Financial Partners IncSynovus Financial Corp July 24 (Reuters) - Pinnacle Financial Partners (PNFP.O), opens new tab and Synovus Financial (SNV.N), opens new tab have agreed to merge in an $8.6 billion all-stock deal, forming one of the largest regional banks in the southeastern United States with over $115 billion in combined assets. The agreed exchange ratio values Synovus shares at $61.18 apiece, the companies said on Thursday. That represents a premium of about 10% to the company's closing stock price of $55.53 on Monday, before media reports of the deal. Advertisement · Scroll to continue Shares of Synovus (SNV.N), opens new tab dropped 8.3% to $52 in extended trading, while Pinnacle fell 6%. Synovus had risen 7.3% on Tuesday after Bloomberg News reported the lender was exploring strategic options, including a potential merger. Interest in bank mergers has grown as regulators under the Trump administration take a more favorable stance to dealmaking. "This could this be the first domino in a new round of 'rack 'em and stack 'em'. A friendlier regulatory environment may help mint several new trillion‑dollar megabanks over the next decade, figuratively making Wall Street even more competitive," said Michael Ashley Schulman, partner at Running Point Capital Advisors. Advertisement · Scroll to continue In May, the Office of the Comptroller of the Currency (OCC) issued an interim final rule restoring faster review and simpler applications for bank mergers. Dealmakers expect bank M&A activity to climb in the second half of the year. Activity has been broadly flat this year and was concentrated mostly among smaller lenders, according to data from S&P Global Market Intelligence. Shareholders of both companies will receive stock in a newly formed parent entity, with Pinnacle shareholders owning about 51.5% and Synovus shareholders holding about 48.5% of the combined company. Kevin Blair, currently CEO of Synovus, will lead the new company as CEO and president, while Pinnacle CEO Terry Turner will serve as chairman. The combined entity will operate under the Pinnacle Financial Partners and Pinnacle Bank name and brand, the companies said. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV599370 About ConnatixV599370 1/100:01AI Weekly: Jensen on tour, Elon on the hunt Continue watchingAI Weekly: Jensen on tour, Elon on the huntafter the adVisit Advertiser websiteGO TO PAGE The deal is expected to close in the first quarter of 2026, subject to regulatory and shareholder approvals. Reporting by Prakhar Srivastava and Akash Sriram in Bengaluru; Editing by Mohammed Safi Shamsi and Devika Syamnath Purchase Licensing Rights Akash SriramThomson ReutersAkash reports on technology companies in the United States, electric vehicle companies, and the space industry. His reporting usually appears in the Autos & Transportation and Technology sections. He has a postgraduate degree in Conflict, Development, and Security from the University of Leeds. Akash's interests include music, football (soccer), and Formula 1.