TriState Capital Bank had the good fortune to open its doors with $85 million in new capital on the eve of the 2008 financial crisis, so it still had money to lend over the next two years, when loan growth stalled at larger and smaller banks.
Last week, the Pittsburgh-based company, with a branch in Villanova and offices in Manhattan, Cleveland and Lawrenceville, NJ, raised another $50 million, this time from the Radnor- and Los Angeles-based Lovell Minnick investment firm (the Philadelphia partner, James Minnick, is a past Morgan Grenfell and SEI Corp. executive).
"This will allow us to continue to grow, with our capital levels well above where they need to be," Joseph Finley, President of the bank's Philadelphia region, told me. "We look at ourselves as a growth company in a non-growth industry. We're building a great book of business in Philadelphia. And we recently opened an office in Manhattan."
The $50 million allows TriState to make hundreds of millions of dollars in new loans. Lovell Minnick pays premium prices for banks it believes are already set to grow, unlike the Philadelphia-based, Ira Lubert-backed Patriot Financial Partners and other bargain-hunting bank funds.
TriState was founded by a group of veteran PA bankers led by ex-state banking secretary A. William Schenck 3d and James Getz, a past Girard Bank executive.