A private-equity firm has plans to acquire a large stake in TriState Capital Holdings, a Pittsburgh company cofounded by a former state regulator.

The Pennsylvania Department of Banking has approved Lovell Minnick Partners, which has an office in Radnor, Pa., acquiring up to 24.9% of TriState's common stock, the Pittsburgh Business Times reported Friday. An investor can own up to 24.9% of a bank's stock without having to become a bank holding company.

The deal would help TriState to underwrite more loans, said William Schenck, TriState's president and a former banking secretary for Pennsylvania, the Business Times reported. At March 31, TriState had $1.5 billion of loans and leases, up roughly 17% from a year earlier, according to the Federal Deposit Insurance Corp.

To complete the deal, Lovell Minnick still needs approval from the Federal Deposit Insurance Corp. and the Federal Reserve.

TriState raised $85 million of capital in its launch in January 2007 and has since grown into a $1.8 billion-asset company. At March 31, the company earned $2.8 million, up more than 31% from a year earlier, according to the FDIC.

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