By Dennis Seid/NEMS Daily Journal
Renasant Corp. is adding $680 million in assets to its trust operations with the acquisition of the Birminghambased trust unit of the Royal Bank of Canada.
The deal does not involve the separate trust operations of RBC Wealth Management in the U.S. or RBC Trust Co. RBC earlier this month sold its regional banking operations, RBC Bank USA, and its credit card operation for $3.62 billion to PNC Financial Services Group.
In the Renasant agreement, which is expected to close by Aug. 31, assuming it gets regulatory approval, RBC Bank will transfer its $680 million in assets under management, comprised of personal and institutional clients with more than 200 trust, custodial and escrow accounts, to a wholly-owned subsidiary. Renasant Bank then will acquire all of the ownership interests in the subsidiary.
Under the terms of the deal, Renasant is paying an initial payment equal to 60 percent of $1.4 million to RBC. Under a clawback provision, at the anniversary of the closing, Renasant will pay the remaining 40 percent – and one-third of the initial payment – as long as RBC’s former trust accounts are retained.
Renasant said its wealth management and trust assets under management and advisement will nearly double to $1.5 billion when the deal is finalized.
“This is a tremendous opportunity to grow Renasant’s wealth management franchise by adding a team of experienced trust professionals and portfolio managers with indepth market and product knowledge to the Renasant family,” said Rocky Miskelly, director of Renasant Wealth Management.
“We welcome all of RBC Bank’s trust clients and look forward to earning their trust and confidence.”
The announcement was made after the markets closed. Shares of Renasant (Nasdaq:RNST) on Wednesday declined 15 cents to close at $14.45.
Contact Dennis Seid at (662) 678-1578 or email@example.com.