Feb. 12--Talmer Bancorp, a Troy-based bank holding company, is expected to move forward on plans to build a Midwest banking franchise and offer stock to the public today. The IPO is expected to raise up to $226 million.
The IPO investment advisory firm Renaissance Capital said Tuesday that it expected Talmer Bancorp to price its IPO Tuesday night for trading today.
Talmer officials would not comment because the holding company is in a quiet period as part of its IPO process.
Kathleen Smith, principal of Renaissance Capital, said the Talmer IPO would be the third financial services IPO in 2014 after the $1.8-billion IPO of Banco Santander's U.S. auto finance lender Santander Consumer and the $225-million IPO of commercial mortgage originator Ladder Capital.
The earlier IPOs are trading up 5.1% for Santander Consumer and 2.9% for Ladder Capital from their IPO prices.
So far in 2014, there have been 28 IPOs raising $6.2 billion, the most active start of the year since 2000.
The bank holding company for Talmer Bank and Trust, which is backed by billionaire Wilbur Ross, disclosed plans Jan. 31 to price the stock between $12.50 and $14.50 a share. The offering is for 15.6 million shares.
The bank's largest shareholder is W.L. Ross & Co., the private equity firm in New York. W.L. Ross Funds are expected to own 17.9% of outstanding common stock after the offering.
Keefe, Bruyette & Woods and JP Morgan are underwriting the IPO.
Talmer said in earlier disclosures that it plans to use net proceeds from the offering to pay off debt.
The stock will be listed on the Nasdaq exchange under the symbol "TLMR."
Talmer, which began as a single branch in 2007 then called First Michigan Bank, has been on a buying binge, including picking up troubled banks. Acquisitions included the Port Huron-based Citizens First Bank, Peoples State Bank of Madison Heights, Community Central Bank of Mt. Clemens and the First Banking Center of Burlington, Wis.
Talmer acquired five banks between April 2010 and the end of last year totaling $5 billion in assets. On Jan. 1, Talmer acquired Michigan Commerce Bank, which changed its name to Talmer West Bank.
The banks in the Talmer group now operate 94 branches in Michigan, Ohio, Indiana, Wisconsin, Illinois, Nevada and New Mexico. The bank's operations include 13 lending offices primarily in the Midwest, too.
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