Chicago-based private equity firm Banc Funds Co. LLC invested in four newly listed banks in the second quarter, including a $42.4 million stake in Origin Bancorp Inc.

This makes the Ruston, La.-based community bank the second-largest investment in Banc Funds' portfolio in terms of market value, according to the firm's latest Form 13F filing. Origin began trading on the Nasdaq on May 9 and returned 20.1% from the time its initial public offering priced through Aug. 17.

Banc Funds also initiated positions in Level One Bancorp Inc. and Business First Bancshares Inc., which both began trading in April, and Spirit of Texas Bancshares Inc., which began trading in May.

A community bank in Michigan, Grand Rapids-based Mercantile Bank Corp., remained Banc Funds' largest holding with a market value of $48.6 million as of June 30, even as the firm sold off 9.5% of its stake in the second quarter.

Even with the additions, the total market value of Banc Funds' investments in the financial sector declined to $1.93 billion as of June 30, from $1.95 billion in the first quarter.

Banc Funds sold its stakes in five banks. The firm's largest exit was an $11.5 million stake in Chicago-based MB Financial Inc. In May, Fifth Third Bancorp announced that it would acquire MB Financial for $4.62 billion, marking the largest deal of the past two years.

Did you enjoy this analysis? Click here to set up real-time alerts for data-driven articles. Click here for a template that allows users to analyze Banc Funds' financial institution holdings as of June 30, 2018. Click here to view Banc Funds' current holdings. Company filings including the 13F can be found through the filings archive tab on a company's briefing book page.