Based in New Orleans, LA, First NBC Bank Holding (NBCB) scheduled a $100 million IPO with a market capitalization of $414 million at a price range mid-point of $24, for Friday, May 10, 2013.
Nine other IPOs were scheduled for the week of May 6th. The full IPO calendar is here.
- S-1 filed April 30, 2013.
- Manager, Joint Managers: Sander O'Neill; Keefe, Bruyette & Woods
- Co Managers: Sterne Agee; FIG Partners; Monroe Financial Partners
NBCB is the largest bank by assets headquartered in New Orleans, which is fast growing. Based on the December 2012 year, the P/E is 14, based on the reported net income. The P/E is 22.9 adjusting for taxes, but NBCB is getting tax benefits from government programs.
New Orleans reached 81 percent of pre-Katrina population in 2012, Census figures show.
New Orleans is a smaller city but is still growing.
Katrina Comeback Makes New Orleans Fastest-Growing City
COMPARE wth recent
regional bank IPOs
First NBC Bank Holding (NBCB)*
Independent Bank Group (NASDAQ:IBTX)
ConnectOne Bancorp (NASDAQ:CNOB)
*As reported by NBCB
Buy NBCB on the IPO.
NBCB is a bank holding company, headquartered in New Orleans, Louisiana, which offers a broad range of financial services through its wholly-owned banking subsidiary, First NBC Bank, a Louisiana state non-member bank. NBCB's primary market is the New Orleans metropolitan area and the Mississippi Gulf Coast.
As of March 31, 2013, NBCB had total assets of approximately $2.8 billion, total loans of approximately $2.0 billion, total deposits of approximately $2.4 billion, and shareholder equity of approximately $255.9 million.
NBCB is the largest bank holding company by assets headquartered in New Orleans as of December 31, 2012.
The main office located in the Central Business District of New Orleans, 31 full service branch offices located throughout the market and there is a loan production office in Gulfport, Mississippi.
Following the end of the first quarter of 2013, First NBC Community Development Fund, LLC received an allocation of $50.0 million from the Community Development Financial Institutions Fund of the U.S. Treasury under its New Markets Tax Credit program.
The allocation will generate $19.5 million in tax credits. The allocation represented a 25.0% increase over the Fund's prior year allocation and increased the Fund's total allocations under the program to $118 million.
History And Growth
First NBC Bank was chartered with a commitment to the revival of the New Orleans metropolitan area, which was severely damaged by Hurricane Katrina in August 2005. Led by New Orleans native and veteran banker, Ashton J. Ryan, Jr., First NBC Bank commenced banking operations in May 2006.
Since inception, First NBC Bank has experienced tremendous growth, both organically and acquisitively, in becoming a premier banking institution in New Orleans. In 2007, First NBC Bank shareholders exchanged their shares of common stock for shares of common stock of First NBC Bank Holding Company, and the bank thereby became our wholly-owned subsidiary. Notable milestones include the following:
• May 2006 - Chartered with an initial capitalization of $61.8 million from local investors and highly sophisticated institutional investors, making it the largest initial capitalization of a de novo financial institution to commence operations under a Louisiana charter.
• April 2008 - Completed acquisition of Dryades Bancorp, Inc., which contributed approximately $74 million in assets and four branches located in Orleans and Jefferson Parishes.
• May 2008 - Completed the acquisition of a branch of Statewide Bank located in Jefferson Parish having approximately $60 million in deposits.
• June 2011 - Achieved the top deposit market share in the New Orleans market of any bank holding company headquartered in the New Orleans market.
• November 2011 - Completed the FDIC-assisted acquisition of Central Progressive Bank assuming $345 million in deposits and purchasing $368 million in assets, followed by the sale to outside investors of certain nonperforming assets carried at $82.6 million by Central Progressive Bank, which represented substantially all of the acquired nonperforming assets.
Recent Regional Bank IPOs
Notice that all of them traded down from their first day highs.
(1)April 3, 2013
Independent Bank Group, Texas
Priced at $26, range top. First day high of $29.36. Recently traded at $28.54. IPOdesktop said "buy.'
(2) February 14, 2013
ConnectOne Banncorp, New Jersey,
Priced at $28, above range. First day high of $29.65. Recently traded at $29.13. IPOdesktop said "buy."
(3) September 12, 2012
National Bank Holdings (NYSE:NBHC), Colorado.
Priced at $19.25, below mid-range of $21. First day high of $19.60. Recently traded at $17.93. IPOdesktop said 'avoid."
No dividends are planned.
Use Of Proceeds
NBCB expects to net $91.5 million from its IPO. Proceeds are allocated to support organic growth and for other general corporate purposes.
Disclaimer: This NBCB IPO report is based on a reading and analysis of NBCB's S-1A filing, which can be found here, and a separate, independent analysis by IPOdesktop.com. There are no unattributed direct quotes in this article.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.