Raymond James to acquire TriState Capital Holdings

The Pittsburgh-based financial firm specializes in securities-based loans.

Raymond James Financial has agreed to acquire TriState Capital Holdings, a Pittsburgh-based diversified financial firm that offers private banking, wealth management and commercial lending, as well as securities-based loans for clients of RIA firms and broker-dealers.

The deal, a combination cash and stock transaction, is valued at approximately $1.1 billion, Raymond James said in a release.

TriState Capital will continue operating as a separately branded firm and as a stand-alone division and independently chartered bank subsidiary of Raymond James. Jim Getz will continue to serve a chairman of TriState, while Brian Fetterolf will continue as CEO of TriState Capital Bank and Tim Riddle will remain CEO of Chartwell Investment Partners, TriState’s $11 billion asset management unit.

The main driver of cost synergies in the transaction is replacing a portion of TriState Capital Bank’s current and future higher-cost deposits with Raymond James’ lower-cost deposits from the Raymond James Bank Deposit Program, the company said.

[More: Raymond James buys another boutique investment bank]