Raymond James Financial in St. Petersburg, Fla., has agreed to buy TriState Capital Holdings in Pittsburgh.
Raymond James, parent of the $35 billion-asset Raymond James Bank, said in a press release Thursday that it will pay about $1.1 billion in cash and stock for the $12 billion-asset TriState. The deal is expected to close in next year.
TriState “has a terrific, client-centric franchise focused on serving clients with premier private banking, commercial banking and niche investment management products and services,” Paul Reilly, Raymond James’ chairman and CEO, said in the release.
“As we have followed the firm and management team over the past several years, including as its largest deposit client, we’ve admired its leadership position in offering securities-based lending through a scalable and robust technology platform,” Reilly added. “This acquisition further illustrates our commitment to utilize excess capital through organic and inorganic growth that we expect to drive strong returns for shareholders over the long term.”
TriState will continue to operate as a stand-alone division and independently chartered bank unit of Raymond James.
Jim Getz will remain TriState’s chairman and CEO, while Brian Fetterolf will continue to serve as CEO of TriState Capital Bank. Tim Riddle, CEO of Chartwell Investment Partners, will also retain his title.
Raymond James said it expects the deal to be accretive to its earnings per share in the first full year after closing, excluding merger-related expenses, with over 8% accretion after the third year.
The primary driver of cost synergies involves replacing a portion of TriState’s current and future higher-cost deposits with lower-cost deposits from the Raymond James Bank Deposit Program.
Raymond James was advised by Raymond James & Associates and Sullivan & Cromwell. TriState was advised by Stephens and Mayer Brown.