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BayCom lines up Nasdaq float
Posted on Thursday, 12 April 2018 10:51
Organic growth and mergers and acquisitions are on the agenda for BayCom once the Californian holding company of United Business Bank completes an initial public offering (IPO) on Nasdaq.
The prospectus with a USD 57.50 million placeholder comes on the heels of three other US banks announcing or completing listings domestically in 2018 to date, Zephyr, the M&A database published by Bureau van Dijk, shows.
FIG Partners and DA Davidson are handling the debut, which includes an overallotment option, though the terms of the float are not yet known.
United Business was founded in 2004 as a California-chartered commercial bank and started operating in July 2004 to provide financial services mainly to local small and mid-sized businesses, service professionals and individuals.
BayCom was established as the holding company in 2016 and, as at 31st December 2017, had total assets of USD 1.25 billion, deposits of USD 1.10 billion, loans of USD 890.10 million and shareholders’ equity of USD 118.60 million.
Over the last 14 years, the lender has grown to 17 branches across its home state and those of Washington and New Mexico, and has completed five acquisitions since 2010.
BayCom bought Global Trust Bank in October 2011, Community Bank of San Joaquin in April 2014, Valley Community Bank in February 2015, United Business Bank FSB in April 2017 and Plaza Bank in November 2017.
As a result of organic growth and acquisitions, assets have increased at a compound annual growth rate (CAGR) of 32.0 per cent for the five years ended 2017, deposits at a CAGR of 33.0 per cent and loans at a CAGR of 32.0 per cent.
The group’s efficiency ratio was 67.3 per cent for fiscal 2017, compared to 63.3 per cent in FY 2013.
As at the 31st March 2018, Baycom had tier 1 leverage of 9.4 per cent, common equity tier 1 of 13.1 per cent, tier 1 capital ratio of 13.1 per cent, and total capital ratio of 13.7 per cent.
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