Crain's Detroit Business - 2011 Book of Lists - (Page 81)

December 27, 2010 CRAIN’S DETROIT BUSINESS Page 81 In this section Accounting firms . . . . . .83 Banks & thrifts . . . .85, 87 Money managers . . . . .89 Business insurance agencies . . . . . . . . . . .91 SBA lenders . . . . . . . . .92 FINANCE T he emergence of the once-tiny First Michigan Bank of Troy as a major player on the local banking scene has to be considered the big finance story of 2010. A year ago, the bank had one branch and merely $75 million assets. It was barely a blip on the local finance scene, notable only for the person at the helm, Chairman and CEO David Provost, who had founded the Bank of Bloomfield Hills in 1989 and sold it for a big profit to Chicago-based The Private Bank in 2005. Provost served as chairman and CEO of the renamed PrivateBank-Michigan until 2008, when, saying he wanted to be more entrepreneurial, he joined the fledgling First Michigan Bank. Provost showed he could be very entrepreneurial, indeed. On April 30, it was announced that First Michigan had bought the assets of Citizens First Bank of Port Huron, a bank with 22 branches and more than $1 billion Provost in assets that had been shut down by state and federal regulators. Its employees were retained and all branches remained open. The big news, though, was how the purchase was financed — the same day First Michigan took over Citizens First, it closed on a capital raise of $200 million to fund the deal, led by New York financier Wilbur Ross. That his W.L. Ross & Co. LLC would invest in a Michigan bank was the financial equivalent of a man-bites-dog story. Moreover, Ross said the plan was to invest more money in First Michigan as more deals came up. In November, another deal came up. First Michigan bought 17 branches and about $500 million in assets from Wisconsin-based First Banking Center in another takeover by the Federal Deposit Insurance Corp. Provost said the bank wasn’t through buying. It had enough capital from the first capital raise, about $100 million, to buy another $1 billion in distressed assets, and pledges from Ross and others to kick in another $200 million as soon as it was needed. Another highlight of 2010 was the surprising and quick demise of Detroit-based W.Y. Campbell & Co. in a dispute between its founders and its parent company, Texas-based Comerica Inc. The investment banking firm had been co-founded in 1988 by William Campbell and William McKinley, who later helped co-found a mini-network of private-equity companies in Detroit — Huron Capital Partners LLC, Peninsula Capital Partners LLC and Superior Capital Partners LLC. In 1995, they sold their firm to Comerica but continued to run it independently until early this year. A disagreement with Comerica led to discussions for employees to buy the firm back, but those talks came to a halt in March and the founders left in April. That drastically altered the local investment banking landscape. Two former Campbell employees, Cliff Roesler and Kevin Marsh, formed their own firm, Angle Advisors-Investment Banking LLC. They soon landed three other former Campbell bankers, one of whom, Dean Harden, opened up an office in China. Three other Campbell alums — Robert Parker, Brian Dragon and Andre Augier — formed another firm, Birmingham-based Quarton Partners. Owning just the name, now, Comerica shut Campbell down. The breakup was seen as a potential boon to other local investment banks, including Grosse Pointe-based Donnelly Penman & Partners, Birmingham-based Amherst Partners and P&M Corporate Finance, the investment banking affiliate of Southfield-based Plante & Moran PLLC. Another highlight: The sale in June by Huron Capital of its controlling interest in St. Clair-based Ross Medical Education Center to J.L.L. Partners, a New York private-equity firm, for $232 million, a return of nearly 19 times the original investment. “You hope to do one of those in your career,” said Kevin Prokop of Livonia-based Rockbridge Growth Equity LLC. With plenty of dry powder left to invest in their current funds by Huron, Superior and Peninsula, with banks showing more willingness to co-invest on private-equity deals and with business owners willing to settle for lower returns, now, post-recession, look for the pace of wheeling and dealing to pick up in 2011 over what was a generally slow 2010. — Tom Henderson For some banks, interesting isn’t good May we stop living in interesting times. That’s the wish of local area bankers who are tired of proving the truth of the famous Chinese curse. Four area banks were shut down in 2010: Lakeside Community Bank of Sterling Heights and Citizens First Bank of Port Huron, both in April; New Liberty Bank of Plymouth in May; and Paramount Bank of Farmington Hills on Dec. 10. From October 2008 through 2009, five other area banks were closed by regulators. Currently, seven area banks are operating under federal and state consent orders to improve operations, and five of them are considered undercapitalized, one critically undercapitalized and in imminent danger of takeover — Peoples State Bank of Madison Heights. Takeovers and shutdowns were put into context in October when the body of missing bank CEO and President David Widlak was found by duck hunters near a Department of Natural Resources and Environment boat ramp on Lake St. Clair. Widlak had mysteriously disappeared a month earlier, on Sept. 19, while working at Community Central Bank’s headquarters in downtown Mt. Clemens. After one autopsy by Macomb County Medical Examiner Daniel Spitz revealed no foul play, an autopsy paid for by Widlak’s family by Oakland County Medical Examiner Ljubisa Dragovic found bullet fragments and a bullet wound in the back of Widlak’s neck. He had, said Dragovic, been shot execution style. Police are awaiting tests on a handgun found near the body and haven’t conclusively ruled the death a homicide. Meanwhile, the bank’s share price tumbled and plans were put on hold to raise $20 million in a stock sale to recapitalize the bank. On Nov. 1, it became the latest area bank to begin operating under a consent decree to improve operations. On Nov. 15, in its earnings report for the third quarter that ended Sept. 30, the bank revealed that its Tier I ratio of assets to equity capital had fallen to 2.56 percent. That ranked sixth worst of area banks. There was at least one glimmer of light at the end of the tunnel for area banks. In the third quarter of 2009, all 10 public banks lost money. In the third quarter of 2010, three of them — Dearborn Bancorp Inc., Birmingham Bloomfield Bancshares Inc. and United Bancorp Inc. of Ann Arbor — managed to eke their way into the black. — Tom Henderson Capital campaigns Below are the largest capital campaigns ranked by campaign goal. Also noted is the target end date: 1. Wayne State University Goal: $500+ million Goal: $250 million Goal: $170 million Goal: $140 million Goal: $100 million 6. Lawrence Tech Goal: $75 million 6. Detroit Institute of Arts Goal: $75 million Goal: $55 million Goal: $50 million 9. Oakwood Healthcare Inc. Goal: $50 million TBD 2015 TBD 2013 8. College for Creative Studies 9. Eastern Michigan University 2013 2015 $2013 2011 TBD 2012 2. Henry Ford Health System 3. William Beaumont Hospitals 4. Detroit Riverfront Conservancy 5. St. Jos. Mercy Health System SHOULD YOUR COMPANY BE ON ONE OF THESE LISTS? Contact cdbresearch@crain.com. LISTS AS SPREADSHEETS You can buy individual Crain’s lists or our Book of Lists in Excel spreadsheet format at www.crainsdetroit.com. Pull down “Lists/Resources” in the top navigation bar to “Lists.” Michigan, we’re here for you… now more than ever. 248.267.3700 | www.michcpa.org FINANCE http://www.crainsdetroit.com http://www.michcpa.org http://www.michcpa.org

Table of Contents for the Digital Edition of Crain's Detroit Business - 2011 Book of Lists

Crain's Detroit Business - 2011 Book of Lists
The Big Picture
10 things to watch in 2011
10 things to remember about 2010
Private 200
Fastest-growing companies
Public school districts
Top-compensated CEOs
Top-compensated non-CEOs
Metro Detroit employers
Wayne County employers
City of Detroit employers
Livingston County employers
Washtenaw County employers
Macomb County employers
Oakland County employers
Publicly held companies
Hispanic-owned businesses
Native American-owned businesses
Asian-owned companies
Black-owned businesses
Woman-owned businesses
The Motor City
Airlines Serving Detroit Metro
Professional Sports Teams
Auto Suppliers
Auto Dealers
Aftermarket Suppliers
Divisions
Defense Contractors
New Economy/Health Care
Family-owned companies
IP law firms
Group health plans
Hospital companies
Physician organizations
Graduate business degrees
Engineering companies
Environmental companies
IT companies
Biotech companies
People/Awards
Salute to Entrepreneurs
CFO Awards
40 Under 40
Best Lawyers
20 in their 20s
Women to Watch
M&A Awards
Most Connected
Finance
Capital campaigns
Accounting firms
Banks and thrifts
Money managers
Business insurance agencies
SBA Lenders
Real Estate/Services
Office furniture dealers
Nonprofits
Meeting facilities
General contractors
Architects
Property managers
Residential brokers
Staffing companies
Logistics firms
Law firms
Classifieds
Index of Companies

Crain's Detroit Business - 2011 Book of Lists