Miami-based community bank US Century Bank has announced the launch of a $40 million initial public offering (IPO).
It intends to list on the Nasdaq Global Market under the ticker symbol USCB, it said in a statement this week.
US Century has 11 banking centers across Florida and a digital platform offering a range of products and services. It reported total assets of $1.6 billion as of March 31, 2021.
It is the latest bank to tap into buoyant equity markets for additional cash. Several banks have issued new shares in recent months, while California’s Five Star Bancorp raised $109.5 million in an IPO in May.
For many community banks, going public is “a logical next step” in growing their businesses and improving their services to local economies, according to a comment piece for Banking Exchange from Laura Hamilton, vice president at OTC Markets Group, published last June. Hamilton explained that the way community banks go public depended on individual characteristics, including their capital, regulatory, and investor needs.
Meanwhile, last month three community banks were added to the ABA Nasdaq Community Bank Index. The index now hosts 301 community banks with a total market capitalisation of almost $310 billion.
The trio of banks were: New York-based Generations Bancorp, Virginia National Bankshares Corporation, and Pennsylvania’s William Penn Bancorporation.
The index, launched in 2003 in partnership with the American Bankers Association (ABA), is designed to represent community banks and raise awareness of the sector among analysts and investors.
In June 2020, California Bancorp, ChoiceOne Financial Services, Cincinnati Bancorp, Investar Holding Corporation, and Professional Holding Corp were added to the ABA Nasdaq Community Bank Index.