Texas focused bank holding company headquartered in Houston, Texas.
Yet another bank holding company growing by acquisitions.
The Houston, Dallas and Austin MSAs are GNBC’s target markets.
Based in Houston, TX, Green Bancorp (Pending:GNBC) scheduled a $75 million IPO on the Nasdaq with a market capitalization of $407 million at a price range midpoint of $16 for Friday, August 8, 2014.
The full IPO calendar is available at IPOpremium
Manager, Co-Managers: Sandler O'Neill and Jefferies
Joint Managers: J.P. Morgan, RBC Capital Markets, Keefe, Bruyette & Woods
End of lockup (180 days): Wednesday, February 4, 2015
End of 25-day quiet period: Tuesday, September 2, 2014
GNBC is a Texas focused bank holding company headquartered in Houston, Texas, growing primarily from acquisitions.
Mrkt Cap ($mm)
% offered in IPO
annualizing net income est for Q2 '14
- Yet another bank holding company growing by acquisitions.
To put the conclusions and observations in context, the following is reorganized, edited and summarized from the full S-1 referenced above.
GNBC is a Texas focused bank holding company headquartered in Houston, Texas. GNBC's wholly owned subsidiary, Green Bank, N.A., a nationally chartered commercial bank, provides commercial and private banking services primarily to Texas based customers through twelve full service branches in the Houston, Dallas and Austin MSAs.
The Houston, Dallas and Austin MSAs are GNBC's target markets, and GNBC believes its growing economies and attractive demographics, together with its scalable platform, provide GNBC with opportunities for long term and sustainable growth.
As of March 31, 2014, GNBC had consolidated total assets of $1.8 billion, total loans of $1.4 billion (of which $1.39 billion were originated by GNBC and $18.8 million were acquired), total deposits of $1.5 billion and total shareholders' equity of $203.6 million.
GNBC's emphasis is on continuing to expand its existing business by executing on its proven portfolio banker driven business model as well as pursuing select strategic acquisitions and attracting additional talented portfolio bankers. During 2012 and 2011, GNBC completed the following acquisitions:
- Main Street Bank Asset Purchase: three branches of Main Street Bank located in the Houston MSA with $167.7 million in total deposits and $12.7 million in loans, acquired in October 2011; and
- Opportunity Bancshares Stock Purchase: Opportunity Bancshares with one branch located in the Dallas MSA, $44.1 million in total deposits and $25.6 million in total loans, acquired in May 2012.
- In addition, GNBC recently entered into a definitive agreement for the acquisition of SharePlus.
As of March 31, 2014, SharePlus had four branches (three in the Dallas MSA and one in Kentucky), $33.1 million in stockholders' equity, $315.8 million in total assets, $273.5 million in deposits and $228.7 million in loans.
No dividends are planned.
GNBC's banking competitors in its target markets include Chase, Wells Fargo, Bank of America, BBVA Compass, Amegy, Comerica, Regions, Prosperity Bank, BancorpSouth, Independent Bank, Texas Capital and various community banks.
GNBC is subject to vigorous competition in all aspects of its business from banks, savings banks, savings and loan associations, finance companies, credit unions and other providers of financial services, such as money market mutual funds, brokerage firms, consumer finance companies, asset-based non-bank lenders, insurance companies and certain other non-financial entities, including retail stores which may maintain their own credit programs and certain governmental organizations which may offer more favorable financing than GNBC can.
- Stephen Eisenstein 24.1%
- Investment funds affiliated with Friedman Fleischer & Lowe, LLC 24.1%
- Investment funds affiliated with Harvest Partners, LP 24.1%
- Investment funds affiliated with Pine Brook Road Partners, LLC 24.1%
Use of proceeds
GNBC intends to use the $68 million in proceeds from its IPO as follows:
$8 million of the net proceeds from this offering received by GNBC to pay a portion of the purchase price of SharePlus and to contribute all but $5 million of the remaining net proceeds to the Bank to be used for general corporate purposes. Other than SharePlus, GNBC has no current plans, arrangements or understandings to make any acquisitions. However, at any given time GNBC may be evaluating other acquisition candidates, conducting due diligence and may have entered into one or more letters of intent.
Disclaimer: This GNBC IPO report is based on a reading and analysis of GNBC's S-1 filing, which can be found here, and a separate, independent analysis by IPOdesktop.com. There are no unattributed direct quotes in this article.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it. The author has no business relationship with any company whose stock is mentioned in this article.