US bank IPOs on road to recovery from pandemic low

IPO activity among U.S. banks bounced off pandemic-era lows in 2021 but still lagged 2019 levels.

Last year, six U.S. banks closed an initial public offering, raising a combined $392.2 million. By comparison, 2020 saw only one bank IPO, which raised $66.0 million, and 2019 had seven bank IPOs, which raised a total of $508.1 million, according to S&P Global Market Intelligence data.

Murray, Utah-based FinWise Bancorp. — IPO completed Nov. 18, 2021

Use of proceeds: Funding organic growth and general corporate purposes, which could include future acquisitions and other growth initiatives.

Piper Sandler & Co. and Stephens Inc. were joint bookrunners for the offering.

The bank's stock price rose 63.3% between IPO pricing and Jan. 18, 2022.

Humble, Texas-based Third Coast Bancshares Inc. — IPO completed Nov. 8, 2021

Use of proceeds: To support organic growth and for general corporate purposes, including maintenance of required regulatory capital and potential future acquisition opportunities.

Piper Sandler, Stephens Inc. and Deutsche Bank Securities Inc. acted as joint bookrunners for the offering.

The bank's stock price declined 0.2% between IPO pricing and Jan. 18, 2022.

Anniston, Ala.-based Southern States Bancshares Inc. — IPO completed Aug. 11, 2021

Use of proceeds: For general corporate purposes, which may include capital and liquidity to support growth, and for potential acquisitions of other banks or closely related businesses.

Keefe Bruyette & Woods Inc. and Truist Securities Inc. were joint bookrunners for the offering, while Hovde Group LLC and Performance Trust Capital Partners LLC served as co-managers.

The bank's stock price rose 7.2% between IPO pricing and Jan. 18, 2022.

Middletown, N.Y.-based Orange County Bancorp Inc. — IPO completed Aug. 4, 2021

Use of proceeds: To support the general corporate purposes and growth at Orange Bank & Trust Co. through expansion of its lending and wealth management activities and by financing strategic acquisitions.

Piper Sandler and Stephens were joint bookrunners for the offering.

The bank's stock price rose 23.0% between IPO pricing and Jan. 18, 2022.

Doral, Fla.-based USCB Financial Holdings Inc. — IPO completed July 22, 2021

Use of proceeds: For redemption of outstanding shares of preferred stock, organic growth and general corporate purposes.

Keefe Bruyette & Woods served as the main book runner for this offering, while Piper Sandler and Raymond James & Associates Inc. were co-managers.

The bank's stock price rose 39.1% between IPO pricing and Jan. 18, 2022.

Rancho Cordova, Calif.-based Five Star Bancorp — IPO completed May 4, 2021

Use of proceeds: To fund a cash distribution to the bank's existing shareholders and to increase bank capital to support organic growth strategies, including expanding market share.

Keefe Bruyette & Woods was the main bookrunner for the offering, while D.A. Davidson & Co. and Stephens served as co-managers.

The bank's stock price rose 54.1% between IPO pricing and Jan. 18, 2022.