Shares of the branchless bank Tristate Capital Holdings (NASDAQ:TSC) had shot up more than 30% as of 11 a.m. EDT Thursday after the company announced it will be acquired by Raymond James Financial (NYSE:RJF).
Raymond James announced it plans to purchase Tristate in a part stock, part cash transaction valued at $1.1 billion. The total consideration for each Tristate shareholder is $31.09. Shares of Tristate closed at $22.75 yesterday, which implies a roughly 37% premium over yesterday's closing price.
"TriState Capital 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, chairman and CEO of Raymond James, said in a statement.
Tristate comes with nearly $11 billion of deposits and nearly $10 billion of loans including a large securities-based lending unit. Tristate also has an investment management unit with $11.5 billion of assets under management.
Raymond James stock, which Tristate is now tied to, is down more than 3% today, as it's not uncommon to see an acquirer's stock get dinged up following a deal announcement. Considering Tristate shareholders received a 37% premium and the bank is only up 31%, there could be more room to run.