Talmer Bancorp (TLMR) is a community bank holding roll-up headquartered in Troy, Michigan
Seven other companies are scheduled for the week of February 10, 2014. The full IPO calendar is available at IPOpremium.
The manager and joint managers are Keefe Bruyette Woods, J.P. Morgan. The co-managers are Raymond James, RBC Capital Markets, Sterne Agee, Sandler O'Neill.
TLMR scheduled a $210 million IPO with a market capitalization of $945 million at a price range midpoint of $13.50 for Wednesday, February 12, 2014, on the Nasdaq.
Between April 30, 2010 and December 31, 2013, TLMR successfully completed five community bank acquisitions totaling $5 billion in assets and $4.9 billion in liabilities.
In addition, on January 1, 2014, TLMR acquired Michigan Commerce Bank, which consists of four former bank subsidiaries of Financial Commerce Corporation that had, in the aggregate, total assets of $947.4 million and total liabilities of $897.1 million at September 30, 2013.
Shareholders intend to sell 76%% of the IPO.
annualizing Sept 3 mos
Net Int inc
Talmer Bancorp (TLMR)
The rating is neutral to positive, because there are high regulatory barriers to competition, although 1.5 price-to-book is high, 90x Sept qtr earnings is high. Shareholders are selling 76% of the IPO.Business
TLMR is a bank holding company headquartered in Troy, Michigan
Between April 30, 2010
and December 31, 2013
, TLMR successfully completed five community bank acquisitions totaling $5 billion
in assets and $4.9 billion
In addition, on January 1, 2014
, TLMR acquired Michigan Commerce Bank
, which consists of four former bank subsidiaries of Financial Commerce Corporation
that had, in the aggregate, total assets of $947.4 million
and total liabilities of $897.1 million
at September 30, 2013
In connection with the acquisition, Michigan Commerce Bank
changed its name to Talmer West Bank
. Through its wholly-owned subsidiary banks, Talmer Bank and Trust
"), First Place Bank
and Talmer West Bank
TLMR is a full service community bank offering a full suite of commercial and retail banking, mortgage banking, wealth management and trust services to small and medium-sized businesses and individuals primarily within Southeastern Michigan
, Western Michigan
and in smaller communities in Northeastern Michigan
, as well as Northeastern and Eastern Ohio
, Northern Indiana
, South Central and Southeastern Wisconsin
and Chicago, Illinois
Given TLMR's strong capital position, local market knowledge and experienced leadership team, management believes it has a competitive advantage in the markets that TLMR serves.
TLMR has retained a seasoned community bank management team with executive management experience in community banks located in its Midwest markets.Growth plan
With a well-managed, financially sound and well-capitalized bank, management believes it has significant opportunities to expand in the current market environment through organic growth and strategic acquisitions of banking franchises in its concentrated markets of Michigan
, as well as other markets in Indiana
and in the Chicago
Metropolitan area of Illinois
No dividends planned.Competition
TLMR competes with commercial banks, credit unions, savings institutions, mortgage banking firms, consumer finance companies, securities brokerage firms, insurance companies, money market funds and other mutual funds, as well as super-regional, national and international financial institutions that operate offices in its market areas and elsewhere.5% stockholders
Investment funds affiliated with Greenlight Capital, Inc.
5.1%Howard Hughes Medical Institute
Investment funds affiliated with Manulife Asset Management (US) LLC
9.4%Universities Superannuation Scheme Limited
Investment funds affiliated with WL Ross & Co. LLC 24.1% Use of proceeds
Shareholders expect to receive 76% of the IPO proceeds. TLMR itself expects to net $44.2 million
from its IPO. Proceeds are allocated as follows:Talmer Bancorp, Inc.
borrowed $35 million
under a senior unsecured line of credit to support the acquisition and recapitalization of Talmer West Bank
. The line of credit matures on December 19, 2014
and accrues interest at an annual rate of 3.0% plus the one-month LIBOR
rate. TLMR will use a portion of its net proceeds from this offering to repay in full the amount TLMR drew on the line of credit, plus accrued and unpaid interest.
The remainder is allocaed to general corporate purposes, including to support organic growth, as well as possible acquisitions of depository institutions through traditional open-bank and FDIC
failed-bank acquisitions, and through selective acquisitions of financial services companies or of assets, deposits and branches that TLMR believes present attractive risk-adjusted returns and provide a strategic benefit to TLMR's growth strategy.