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.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of