Earlier this year, Cadence Bancshares announced its initial public offering (IPO). Soon after, analysts started exploring whether or not additional banks might pursue a similar strategy.
Following the announcement, the Birmingham Business Journal’s Michael Seale authored a piece, entitled “Will Cadence pave the way for more bank IPOs in Birmingham?,” about the possibility of future Birmingham bank IPOs and gathered perspectives from two local banking experts on the topic.
Murray Bibb, a member of Porter White & Company’s community bank team, shared the following insights: “With banks suffering through an extended low-rate environment on top of increased regulatory costs, many investors likely began to question the proposition of returns offered by the financial sector. However, activity in recent years suggests that feeling is likely a thing of the past. During the four years from 2008 through 2011 there were a total of only four bank and thrift IPOs nationwide. However, during the subsequent five years from 2012 through 2016, there have been 31 completed U.S bank and thrift IPOs.”