Big backers aim to build local banks - Dallas Business Journal:

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The practice has netted millions for Texas bank CEOs and theidrlocal investors. Now, big institutional investors are following the samegame plan. Insteads of starting another bank, former bank CEO Nigelp Harrison instead chose to build a banking companycallee , backed by institutional funding, that aims to builfd a string of medium-sized community bank franchises. That'ss a common achievement for the big-bank operations when they arrivre in anew marketplace, but FC, the parent operatiom of , is trying to build a network of locap operations. It opened its secone office, at Coit Road and Interstate 635 inNorthg Dallas, on March 3. Harrison's FC Holdingz Inc.
aims to open a half-dozen Dallas bank officee in the first halfof 2008. "Wed provide the capital and back and they get the opportunity to go out and do what they do said Harrison, who sold a prior institutio called to for $123 millioj in 2005. In addition to his own moneg andlocal investors, FC Holdings landed a $150 million commitment from , a New York City privatwe equity firm. FC Holdingse used the first $75 million of that deal to acquirewFirst , in the town of Crockett, last "As I can testify myself, raising monehy is hard work," said Jim a former bank CEO and senior managing directo r of Commerce Street Capital in "Once (Harrison) got JLL, that's it.
He'as got his money tied While they can provid more capital inone shot, institutions are more likelh to push bankers for an exit strategy than individuao investors, Gardner said. Gardner's Commerce Street is an institutional investor in 28 communityu banksin Texas, California, Soutyh Carolina and other states. In most the former boss goes with thebank that'x sold. In time, he chafes at beiny part of a larger organization and leaves to starranother bank.
That is what led Gerold at age 62, to start instead of Hooker was CEOof , whichn sold in 2002 to and has grownm by acquisition to be the 12th biggestg bank in the In starting the new bank, Hooker said it was good to "getr away from the institutional feel and a cookie-cutter Hooker's new institution, Bank of Las Colinas, raisef $8 million in start-up capital, with 51% cominbg from Michigan-based (NYSE: CBC), which has backed 62 communituy bank startups, mostly in the Midwest, Southwesg and California. Hooker and his No. 2 man, Brad chief credit officer, could have raised the money fromlocal investors, but Capitol Bancorp bringw administrative support in addition to its $4.
08 millionn to the table. "The value is that back-rookm operation. They handle legal, accountint HR, all that stuff that's not Tidwell said. "The fun part is taking care of customersx anddoing deals. That's what we want to focux on." His first two Texas ventures, Las Colinase and Bank of Fort Bend, got starterd in December. Las Colinas officially opened forbusinessw Dec. 13 and finished the year with $11.4 millionn in total assets, including $9.7 millioj in net loans and leases.
Localk bank chiefs in Texas are able to sell and star over because big banks must have a structurethat doesn'f allow for the same agility and customer service that locallyg owned banks offer, Harrison said. Big local bank s run into thatas well.