Sun Bancorp (SNBC)

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Targets for acquisition in NJ?
http://www.thestreet.com/story/10803910/2/bank-ma--wilbur-ross-shops-nj.html

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$5.17!

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ROSS bought SNBC stake (25 percent) @$4.00 now already $ 5.42..

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By Joe Bel Bruno

Wilbur L. Ross Jr. wants to be the king of New Jersey banking.

Everett Collection

The billionaire financier, who has been beating the drum that private-equity dollars can save the troubled banking industry, bought a nearly 25% stake for $100 million in Vineland, N.J.-based Sun Bancorp. And, he’s making no secret of the fact that he wants to be involved in consolidating the nearly 120 Garden State banks with deposits of less than $3 billion apiece.

Becoming a mogul in New Jersey banking shouldn’t be too difficult: Ross has a lot of dented merchandise to choose from. Given Ross’s penchant for finding distressed gems, he might look at nine banks in the state that regulators have slapped with enforcement actions that order lenders to meet more stringent capital requirements — or else.

For example, privately-held Amboy Bank, based in Old Bridge with $2 billion of deposits, would jibe well with Ross’ latest acquisition. It is the biggest bank that is being asked by the Federal Reserve Bank of New York and the New Jersey Department of Banking and Insurance to boost capital within the next three years, and could benefit from a well-capitalized partner.

Some smaller names on the list under the watch of regulators include Delanco Federal Savings Bank, BNB Bank, City National Bank, Grand Bank NA, Millennium BCP, First Bank, ISN Bank, and Sterling Bank. The state’s publicly-traded banks have also gotten a lift after the Sun Bancorp deal. Moving higher in morning trading are Lakeland Bancorp, which has about $2.2 billion in deposits; Kearny Financial, with $1.5 billion of deposits; and OceanFirst Financial Corp; with $1.4 billion of deposits.

Ross, who made a name on Wall Street decades ago after buying and selling troubled steel companies, has for years been looking to make a name for himself in the banking industry. His W.L. Ross & Co. was part of a consortium that spent $900 million to take over Florida’s BankUnited Financial Corp. last year.

The deal to buy Sun Bancorp represents one departure from previous deals — the leveraged-buyout mogul is paying a premium that pushed up shares 40%. Either Ross really, really wanted the deal, or it might signal some kind of top. Either way, the biggest hurdle he and other private-equity players run into is how willing FDIC Chairman Sheila Bair, who has made no secret of her hesitance in allow such transactions to go through.

And if Ross wants to be a major player in New Jersey’s banking industry, he’s going to have to get past Ron Hermance first. The longtime chairman and chief executive of Hudson City Bancorp, which is New Jersey’s largest bank, has been telling investors this year that he wants to snap up smaller banks. He’s even considering deals outside of the state to take advantage of distressed prices, especially in Florida where Ross already has set up shop.

* Wilbur Ross

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