Opus Bank in Irvine, Calif., has agreed to buy Pensco Trust Co. in San Francisco from Pensco Services.
The $6.6 billion-asset Opus said in a press release Monday that it will pay cash and stock valued at about $104 million, based on Opus' closing stock price on Friday, for Pensco Trust. The transaction is expected to close early in the second quarter.
Pensco Trust has nearly $11 billion of custodial assets from more than 45,000 clients and investments in asset types such as private equity, real estate, notes, cash and other non-exchange traded assets. Kelly Rodriques, Pensco Trust's president and chief executive, retain those posts after the deal closes, while also becoming executive vice president of wealth services at Opus.
"We see tremendous benefit and opportunity between our companies, clients, and employees," Stephen Gordon, Opus' chairman and CEO, said in the release. "Having banked Pensco since early 2014, the Opus team has a strong understanding of Pensco's business and sector and views this synergistic transaction as part of the continued evolution, diversification, and sophistication of Opus."
Gordon said the deal add "a substantial new source of recurring noninterest income" while bringing about $1 billion of "near-zero" cost deposits on to Opus' balance sheet.
Opus was advised by Credit Suisse Securities, Sandler O'Neill and Holland & Knight. Pensco was advised by Financial Technology Partners, FTP Securities and Goodwin Procter.