Pinnacle Financial Corporation and Independence Bank of Georgia Friday announced plans to merge, with Pinnacle buying Independence for about $32.8 million. And, a Pinnacle official says the two offices of Independence Bank, one in Gainesville and one in Braselton, will remain open.
Management of each bank believes that the combined bank will achieve greater scale and diversity in markets, products and management compared to either bank as a standalone, according to the announcement.
Independence will add approximately $184 million in assets, $136 million in loans, and $151 million in deposits to Pinnacle.
"Both locations (of Independence Bank) will continue to serve our customers and operate as Pinnacle Bank," said Anna Jones, Assistant Marketing Officer for Pinnacle.
As for the future of the employees at the two Independence branches, Jones said "We believe the employees at Independence Bank are vital to the success of this acquisition and we are excited as we anticipate them coming onboard with Pinnacle."
Upon completion of this transaction, Pinnacle will have approximately $869 million in assets, $545 million in loans, and $757 million in deposits, based on financials reported as of March 31, 2016.
Commenting on the announcement, L. Jackson McConnell, Jr., President and Chief Executive Officer of Pinnacle, said, “We are excited to announce the combination of Pinnacle and Independence. This transaction will allow us to partner with an excellent financial institution that shares our commitment to serving our northeast Georgia communities. Our partnership with Independence furthers our strategy of targeted expansion in growing markets such as suburban Atlanta and continued organic growth in our current markets. We view the acquisition of Independence as a natural complement to our current growth initiatives and to be an opportunity to deliver our core services to a greater number of community bank customers. We look forward to welcoming our new customers, employees, and community members.”
Terry C. Evans, President and Chief Executive Officer of Independence, added, “We’ve known the Pinnacle leadership for many years and are delighted to partner with a bank that has served its customers and communities with distinction since 1934. Our customers will benefit by a significant expansion in the markets served by the combined bank, as well as the greater breadth and depth of products and services that can be offered as part of this combination. Pinnacle is a true community bank, and decisions will continue to be made locally by bankers who have a vested interest in our customers’ businesses and communities.”
The transaction, which is expected to close in the fourth quarter of 2016, has been unanimously approved by the Boards of Directors of both companies and is subject to customary closing conditions, including regulatory approvals, and approval from the shareholders of Independence.
After the merger, McConnell will continue to serve as President and Chief Executive Officer of Pinnacle and Evans and Sid Chandler, a senior lending officer at Independence, will have leadership positions within Pinnacle, with the primary responsibility of overseeing the communities currently served by Independence.
Pinnacle Financial Corporation is a single-bank holding company, which operates Pinnacle Bank, and is headquartered in Elberton. Chartered in 1934, Pinnacle Bank has offices in Clarke, Elbert, Franklin, Hart, Jackson, Newton, Oglethorpe, and Walton counties. Independence Bank of Georgia was chartered in 2008.
