Flowers Buys Another Bank

Oct 29 2010 | 1:46am ET

Private equity firm J.C. Flowers & Co. is adding another bank to its growing roster. The New York-based firm has won approval to buy New Jersey’s Saddle River Valley Bank.

The deal represents the first so-called silo deal by a p.e. firm for a bank. The silo structure keeps the bank stake separate from the firm’s other investments. Saddle River will be acquired by seven funds set up by J.C. Flowers for the purpose, according to the Office of Thrift Supervision’s approval letter earlier this month.

Terms of the transaction were not disclosed, Bloomberg News reports. Saddle River has $82.8 million in assets and two branches.

OTS—which will be closed under the Dodd-Frank financial regulation overhaul—was heavily criticized last year for allowing another such takeover in Michigan.

J.C. Flowers founder J. Christopher Flowers bought the former First National Bank of Cainesville, Mo.—now known as Flowers National Bank—in 2008. His p.e. firm is also part of a consortium of hedge funds and p.e. firms that took over IndyMac Bank last year.

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