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Origin lays foundation for Nasdaq IPO
Posted on Wednesday, 11 April 2018 13:13
Origin Bancorp is kicking off a listing to strengthen its balance sheet, support organic growth, maintain liquidity ratios, and fund the acquisitions of other banks or financial institutions.
The Louisiana-based lender has got the ball rolling by submitting paperwork with regulators for an initial public offering (IPO) on Nasdaq with a USD 90.00 million placeholder.
It acts as a financial holding company of Origin Bank, a state-chartered, wholly-owned subsidiary founded in 1912 that serves small and medium-sized businesses, municipalities, high net worth individuals and retail clients.
Ruston-headquartered Origin operates 41 branches serving 22 communities from Dallas/Fort Worth across north Louisiana to central Mississippi, referred to as the I-20 Corridor, as well as in Houston.
As of 31st December 2017, the group had total assets of USD 4.15 billion, loans of USD 3.31 billion, deposits of USD 3.51 billion and stockholders’ equity of USD 455.30 million.
Consolidated assets have increased by a compound annual growth rate of 19.0 per cent from USD 380.60 million, as at 31st December 2003 to the end of 2017.
Origin has bought three banks since 2005: First United Bank in 2005 (USD 105.00 million total assets); First Louisiana Bank in 2009 (USD 128.00 million total assets); and Madison Financial in 2010 (USD 68.00 million total assets).
The acquisitions helped the company enter Fort Worth, Plano and Houston, expand its mortgage lending, servicing, insurance and private lending offering, and to increase its own market share.
It has raised over USD 180.00 million in new capital since 2006 to support growth, which has also included hiring six bankers in central Mississippi in 2010 and buying four branches in Houston.
Origin completed private placements in December 2012 and November 2016 worth USD 85.00 million and USD 45.00 million, respectively.
As a result, the lender’s shareholders include Pine Brook Road Associate, with a 9.2 per cent pre-IPO stake, Castle Creek Capital (8.3 per cent), and the Banc Funds (5.1 per cent).
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