Synovus Financial Corp. (NYSE: SNV) saw its shares plunge 5.03% during Thursday's intraday trading session, as investors reacted to a major leadership reorganization announced as part of the company's pending merger with Pinnacle Financial Partners.

The Columbus, Georgia-based financial services company revealed a slate of new banking leaders at the market and specialty levels, aligning under Pinnacle's Chief Banking Officer Rob McCabe. This move is part of the integration process for the combined firm, which is expected to create a Southeast banking powerhouse. Kevin Blair, Synovus Chairman, CEO and President, emphasized the importance of this restructuring, stating, "These early decisions reinforce our commitment to continuity and a seamless transition for clients and team members alike."

While the leadership changes aim to foster "rapid talent acquisition and a true entrepreneurial spirit," according to the company's press release, the market's negative reaction suggests investor uncertainty about the merger's execution and potential cultural shifts. The sharp stock decline comes as both firms prepare for special shareholder meetings on November 6 to vote on the merger proposal, with the deal expected to close in the first quarter of 2026, pending regulatory approvals.