KBRA Affirms Ratings for TriState Capital Bank

KBRA affirms the deposit and senior unsecured debt ratings of A and the short-term deposit and debt ratings of K1 for Pittsburgh, Pennsylvania based TriState Capital Bank (“TriState”) (“the bank”). The Outlook for all long-term ratings is Stable.

Key Credit Considerations

The ratings incorporate the bank’s relationship with its parent company, Raymond James Financial, Inc. (NYSE: RJF) and the intrinsic support TriState is likely to receive from its parent company should the need arise. Viewed as strategically important to RJF, TriState has received initial funding and capital support following the completion of the merger in 2022 (notably, RJF was a longstanding deposit client of TriState prior to the merger). This included $140 million in capital (the last capital investment came in 1Q24) as well as $3.3 billion in deposits from the Raymond James Bank Deposit Program (KBRA notes that the capital and funding support were planned upon the completion of the transaction, and the bank is currently self-sustaining and is expected to remain so going forward. The ratings are further supported by the bank’s lower-risk balance sheet, which includes a loan portfolio heavily concentrated in private banking loans (62% of total loans at 2Q25), supported by comprehensive risk management practices and guidelines. As such, TriState has a long track record as a peer leader with regards to asset quality with nominal credit losses over an extended time period (NCO ratio at or below 0.1% since 2015). Notably, TriState has not reported a net charge-off in its private banking loan portfolio since it began offering the product in 2009. The lower-risk balance sheet is further reflected by the bank’s materially above-average risk-based capital ratios, including a CET1 ratio that has tracked near 17% in recent quarters.

TriState’s earnings profile incorporates a highly spread-based revenue mix with a lower NIM, along with a lower-cost operating business model, with risk-adjusted returns tracking slightly above rated peer averages (TriState reported a RoRWA of 1.63% for 1H25). The bank’s lower NIM is largely a function of its high-cost deposit base (3.86% for 2Q25), attributable to its intentional lack of retail branch network, with deposits primarily sourced through its national deposit and treasury management sales teams focused on specialty verticals as well as middle market commercial and private banking business line clients.

Rating Sensitivities

Given the higher ratings relative to KBRA’s rated universe, we view the prospect of an upgrade as primarily reliant upon positive developments in the credit profile of the bank’s parent, RJF. Should the credit profile of TriState materially change, reflected in comparatively elevated credit losses over multiple periods, or if RJF demonstrates a lack of commitment in supporting TriState, downward pressure on ratings could ensue.

To access ratings and relevant documents, click here.

Methodologies