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Bank IPO rundown 2016

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Bank IPO rundown 2016

This Data Dispatch has been updated with information about announced and completed U.S. bank and thrift IPOs in 2016. For the purposes of this article, an IPO will be considered any initial listing on a major U.S. exchange only. Mutual thrift conversion offerings, as well as banks and thrifts that were previously listed, will not be included.

S&P Global Market Intelligence data show four U.S. bank IPOs during 2016. IPO activity decreased significantly from 2014, when 12 IPOs raised $4.85 billion in aggregate proceeds. That was the highest number of bank IPOs in the last 10 years. In 2015, there were seven bank IPOs.

Overall, 2016 was the third most lucrative bank IPO year in the past decade, with $822.9 million in aggregate proceeds.

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Effingham, Ill.-based Midland States Bancorp Inc.

Effingham, Ill.-based Midland States Bancorp Inc. completed its IPO on May 23, 2016. Priced at $22, the IPO raised $92.1 million in proceeds.

Sandler O'Neill & Partners LP and Keefe Bruyette & Woods Inc. acted as the book managers for the offering, while the co-managers were D.A. Davidson & Co. and Stephens Inc.

On Jan. 26, 2017, Midland States Bancorp Inc., parent of Midland States Bank, agreed to acquire Ottawa, Ill.-based Centrue Financial Corp. The deal was valued at $173.8 million, representing 140.5% of tangible book value. As of Sept. 30, 2016, Midland has $3.23 billion in assets, while Centrue has nearly $1.00 billion in assets, according to SNL data. The transaction is set to close mid-2017, subject to regulatory and shareholder approvals.

Honolulu-based First Hawaiian Inc.

Honolulu-based First Hawaiian Inc. completed its IPO on Aug. 3, 2016. The IPO was priced at $23, and the stock had a one-day pop of 5.43%, closing at $24.25 the next day. This was the largest IPO in 2016, raising $557.8 million in proceeds.

Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and UBS Securities LLC were the co-lead managers for the offering.

Goldman Sachs & Co., Merrill Lynch, Pierce Fenner & Smith Inc. and BNP Paribas Securities Corp. were the global joint coordinators for the offering.

On Jan. 24, 2017, First Hawaiian filed a registration statement for a secondary public offering of shares of its common stock. The proposed aggregate maximum offering price is $100 million, which was estimated solely to calculate the registration fee, according to a registration statement.

According to a Jan. 24, news release, all of the shares in the offering will be sold by San Francisco-based BancWest Corp., which has not yet determined the number of shares to be offered. First Hawaiian was spun off from BancWest parent BNP Paribas SA in 2016.

Nashville, Tenn.-based FB Financial Corp Nashville

Nashville Tenn.-based FB Financial Corp. completed its IPO on Sept. 15, 2016, raising $128.5 million in proceeds. Shares were priced at $19, and rose 9.2% to close at $20.75 the following day.

J.P. Morgan Securities LLC, UBS Securities LLC and Keefe, Bruyette & Woods Inc. served as joint book managers for the offering, while Raymond James & Associates Inc., Sandler O'Neill & Partners LP, and Stephens Inc. acted as co-managers.

Nashville, Tenn.-based CapStar Financial Holdings Inc.

CapStar Financial Holdings Inc. completed its IPO on Sept. 21, 2016. The $15 per share IPO generated $44.6 million in proceeds.

The stock had a one-day pop of 6%, and closed at $15.90 the next day.

Keefe Bruyette & Woods Inc. and Sandler O'Neill & Partners LP served as joint book managers for the offering, while Raymond James & Associates Inc. and Stephens Inc. were the co-managers for the offering.

CapStar Chairman Dennis Bottorff has recently indicated that while the bank will focus on organic growth, it will look into possible acquisitions using proceeds from its IPO.

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