Pinnacle Financial Partners acquired Magna Bank for approximately $83.4 million, a transaction completed in September 2015, structured as combination — election of 0.3369 Pinnacle shares or $14.32 cash per share, capped at 75% stock / 25% cash.
Magna Bank operates in Community banking — Memphis, TN, is based in Memphis, Tennessee (Shelby County), had revenue of about ~$595 million in total assets (March 31, 2015). Magna Bank was a Memphis-based bank with about $595 million in assets and five banking offices in Shelby County plus mortgage offices across Memphis and Middle Tennessee. The roughly $83 million deal (about 1.325 million Pinnacle shares plus $20.7 million cash) gave Pinnacle its entry into Memphis, completing its stated plan to operate in all four of Tennessee's major urban markets. Pinnacle also redeemed Magna's $18.35 million of SBLF preferred stock at closing.
Complete Pinnacle's geographic build-out across Tennessee's four urban markets by entering Memphis, the state's largest city and second-largest MSA, with a target of at least $2.5 billion in Memphis-area assets.
Entry to Tennessee's largest city with strong credit quality and a competitive landscape similar to Pinnacle's proven markets. Merged into Pinnacle Bank; Kirk Bailey named Memphis chairman
We have long said that we plan to operate in each of Tennessee's four urban markets. Memphis is the largest city and second-largest MSA in the state, and the Magna acquisition will complete our current geographic market expansion plans. We see ample opportunities in Memphis, where the competitive landscape is virtually identical to the markets where we historically have been successful.M. Terry Turner, President and CEO, Pinnacle Financial Partners
Given Pinnacle's track record as being one of the top banks in the country to work for and their ability to better serve clients, they are an extraordinarily attractive partner for us.Kirk P. Bailey, Chairman, President and CEO, Magna Bank
Advisory firms were not disclosed for this transaction.