Tennessee-based Pinnacle Financial Partners (Pinnacle) has agreed to acquire local lender Avenue Financial Holdings (Avenue) in a cash-stock deal worth about $201.4m.
Avenue currently operates with a corporate headquarters along with four retail locations in Nashville. As of 31 December 2015, the bank managed about $1.162bn in total assets, $865.3m in loans and $969.6m in deposits.
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Under the terms of the transaction, Avenue’s subsidiary Avenue Bank, and Pinnacle Bank will merge simultaneously with the merger of their respective parent firms.
The deal has already been approved by the board of directors of both companies. It is scheduled to close late in the second quarter or early in the third quarter of 2016, subject to shareholder and regulatory approval.
Following completion of the deal, Avenue chairman and CEO Ron Samuels will assume the role of Pinnacle vice chairman of board of directors.
Pinnacle CEO Turner said: "In our march to dominate the four urban markets in Tennessee, we have said for some time that we would be seeking in-market merger opportunities. This merger is consistent with Pinnacle’s strategy to grow rapidly and become the dominant bank in the commercial banking and affluent consumer segments in Nashville."
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