Devin Ryan
Okay. Great, good morning everyone. Congratulations to both sides here on the announcement. I guess just kind of following up on the previous line of
questioning. Just trying to get a little bit better sense around TriStates growth over the last year, I mean, tremendous momentum on the bank. And if we can just dig in a little bit more to what drove that, what TriState was doing well.
And then as we think about the combination with Raymond James, clearly, youre adding capital, adding resources, adding funding efficiency, could that
growth have been even better over the last 12 months if this deal, say, happened a year ago, so was there opportunity left on the table? And just think about kind of the growth potential moving forward, how should we be modeling that now that we
have this combination?
And then also, if you can touch just a little bit more on Chartwell and what the opportunities are there specifically and can you
accelerate growth? Or is it more just youre providing a more robust platform and infrastructure that they can leverage? Like how should we think about the ability to actually expand assets and work with more clients there?
Paul Reilly
So Devin, a good multipart question there.
So a lot of areas to cover. First, the SBL market is a big market. If you look at the industry, as you know, margins was the traditional source of funding can only be used for securities. If you look at the industry that really the SBL market has
been the growth market and margin has been pretty flat. So it is the preferred financing methodmechanism.
For most broker-dealers or independent
RIAs, they either, have to go to a one-off bank relationship, which isnt technology-driven, isnt efficient. Or start their own bank, which isnt cheap and brings on extra regulators, or go to
really very limited alternatives in the marketplace.
So TriState saw this trend, created really a leading technology where they could go to these
independent advisors, RIAs and other people and allow them to go on to their platform and efficiently, not only put the loan on, but have it effectively and quickly approved and really have SBLs where there really wasnt another source, except
a very, very cumbersome one-off business.
So they saw that. The markets growing. And Ill tell you
that I think their only limitation has been how fast can they process it and how much capital and cash they need because the market is huge. I think theyre into the second or third inning into the SBL penetration. Given where they started and
given their capital, theyve done a great job, but if you look at volumes and requests, I think theyve actually had slower growth because of the capital cash and operational funding. Theyre growing fast for their size organization,
but I think theyre very disciplined managers, and were going to make sure that they grew thoughtfully and within their capital and cash raising needs.
So I think, with us, and they believe too, with that extra deposit base to fund those loans and extra capital, they could have grown much more quickly. And if
you look into the future, now that the technology platform is really mature, I think with the capital and funding sources they will be able to grow substantially.