v3.26.1
Business Combination (Tables)
3 Months Ended
Mar. 31, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Schedule of Purchase Price Allocation
The purchase price has been allocated to the identifiable assets acquired and liabilities assumed based on their estimated fair values as of January 1, 2026. Due to the timing of the transaction closing date and Pinnacle's quarterly report on Form 10-Q, the purchase price allocation is preliminary as of March 31, 2026, and subject to adjustment during the measurement period (not to exceed one year from the acquisition date). While we believe the information available on January 1, 2026 provides a reasonable basis for estimating fair value, we may obtain additional information and evidence during the measurement period that would result in changes to the estimated fair value amounts. Valuations subject to change include, but are not limited to loans, premises, equipment, software, core deposits, certain identifiable intangible assets, certain deposits, deferred tax assets and liabilities, certain other assets and certain other liabilities. Any measurement period adjustments will be recorded retrospectively as adjustments to goodwill. As of March 31, 2026, the Company has recorded goodwill of $1.6 billion related to the Merger. Goodwill is calculated as the excess of the fair value of consideration transferred over the fair value of the net assets acquired and will not be deductible for tax purposes. The fair value of the net assets acquired is presented below and included an $848 million core deposit intangible asset (CDI) and a $262 million wealth customer relationship intangible asset which are included in "identifiable intangible assets". Refer to Note 6 - Goodwill and Other Intangible Assets in this Report for additional information related to goodwill.
(in millions)
Assets acquired:
Cash and cash equivalents$2,538 
Investment securities9,830 
Loans held for sale106 
Loans43,952 
Allowance for loan losses(478)
Loans, net43,474 
Premises, equipment, and software561 
Cash surrender value of bank-owned life insurance941 
Identifiable intangible assets1,110 
Other assets2,768 
Total assets acquired$61,330 
Liabilities assumed:
Deposits$51,316 
Federal funds purchased, and securities sold under repurchase agreements49
FHLB advances and other borrowings2,502 
Other liabilities$1,517 
Total liabilities assumed55,383 
Net assets acquired5,947 
Consideration:
Fair value of common stock issued$6,940 
Fair value of preferred stock issued564 
Fair value of equity awards71 
Total preliminary consideration$7,576 
Preliminary goodwill$1,629 
Schedule of Pro Forma Financial Information
The following table presents certain unaudited pro forma condensed combined financial information for the results of operations for the three months ended March 31, 2026 and 2025, as if Synovus had been acquired on January 1, 2025 by Pinnacle. The unaudited pro forma results include the estimated impact of amortizing and accreting certain purchase accounting adjustments such as intangible assets as well as fair value adjustments to loans, borrowings, and owned and leased premises and equipment. Pro forma combined results also include the adjustments for the elimination of Synovus’ net deferred origination fees accretion and intangible amortization. The unaudited pro forma adjustments are based upon available information and certain assumptions that Pinnacle (as the accounting acquirer) believes are reasonable. The following unaudited pro forma condensed combined financial information does not reflect the costs of any integration activities or benefits that may result from the realization of future cost savings from operating efficiencies. Certain reclassifications have also been made to align Pinnacle’s and Synovus’ historical financial statement presentation. The unaudited pro forma information is provided for illustrative purposes only and is not necessarily indicative of the results that would have occurred had the acquisition been consummated on January 1, 2025 nor is it indicative of future results.
Unaudited Pro Forma
(in millions)Three Months Ended March 31,
20262025
Net interest income
$933 $853 
Total non-interest revenue$284 $215 
Net income available to common shareholders$135 $311