Pinnacle Financial Partners acquired CapitalMark Bank & Trust for approximately $187.0 million, a transaction completed in July 2015, structured as mostly stock — 0.50 Pinnacle shares per CapitalMark share (about 90% stock / 10% cash).
CapitalMark Bank & Trust operates in Community banking — Chattanooga, TN, is based in Chattanooga, Tennessee, had revenue of about ~$968 million in total assets (March 31, 2015). CapitalMark Bank & Trust, founded in 2007, was a fast-growing Chattanooga bank with about $968 million in assets. The acquisition gave Pinnacle its first presence in the Chattanooga MSA — Tennessee's fourth-largest market — and expanded into three high-growth counties new to its footprint. Consideration was roughly $187 million (about 3.3 million Pinnacle shares plus $16.4 million cash), and Pinnacle redeemed CapitalMark's $18.2 million of SBLF preferred stock at closing.
Expand into a third Tennessee urban market with one of the fastest-growing de novo banks of its 2007 vintage, adding scale and a complementary geographic footprint.
Among the fastest-growing banks founded in 2007, strong credit quality, entry to a high-growth fourth-largest state market. Consolidated CapitalMark's Knoxville office into existing Pinnacle locations. Merged into Pinnacle Bank; R. Craig Holley named Chattanooga chairman
This acquisition is consistent with Pinnacle's strategy to grow rapidly while operating in all of Tennessee's four urban markets. CapitalMark has built a very successful firm in Chattanooga and the surrounding areas. In addition to accelerating the rapid growth we had already projected for Pinnacle, this acquisition brings together two institutions with strong records of performance, credit quality, client satisfaction and a highly complementary geographic footprint.M. Terry Turner, President and CEO, Pinnacle Financial Partners
I strongly believe that, collectively, the two franchises can accomplish more, grow more efficiently and realize more value for our shareholders together than independently.R. Craig Holley, Chairman, President and CEO, CapitalMark Bank & Trust
Advisory firms were not disclosed for this transaction.