should i buy eastern bank ipo
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. BOSTON, June 18, 2020 /PRNewswire/ -- Eastern Bank Corporation, the mutual holding company of Eastern Bank, today announced that its Board … Find out YES Bank IPO Issue Price, Subscription Dates and Status, YES Bank IPO Listing Date and more. 1 U.S. Small Business Administration (SBA) lender in Massachusetts for the 12th consecutive year. That makes it harder to gauge how many borrowers are at serious risk of defaulting. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. BOSTON, MA, August 18, 2020 – Eastern Bank announced today that Eastern Bankshares, Inc. (the “Company”), the proposed stock holding company of Eastern Bank, is commencing its stock offering in connection with Eastern’s conversion from the mutual holding company structure to the stock holding company form of organization. We’re motley! Eastern Bank, Which Will Soon IPO, Shows Promise With Q2 Earnings The bank got earnings back up to a better level, and had less deferrals and … Eastern turned a profit of nearly $29 million in the second quarter. ... especially if a bank it wants to buy is going for a significant premium. Recently, PNC Financial Services Group also launched a retail presence in Boston. There are currently 1 hold rating and 4 buy ratings for the stock. This led to broad ownership of Singtel among retail investors […] 540 crore IPO size. Eastern is pricing its IPO at $10 per share, which is common for mutual IPO conversions. As Eastern Bank … Eastern Bankshares, a Massachusetts-based bank with more than 100 offices, filed to list on the Nasdaq in a subscription offering on Thursday. Bandhan Bank Limited is set for an initial public offer (IPO) comprising 11.9 crore equity shares next fiscal year. SPAC investing provides the money and the investor demand. That may have been lower than its earnings of more than $35 million in Q2 2019, but it was much better than Q1 2020, when the bank reported earnings of $8.4 million. Please call on 8108303330 for buy/sell of unlisted stocks. Eastern Bank was also successful with its participation in the Paycheck Protection Program (PPP), originating $1.1 billion in total PPP loan volume to roughly 8,100 borrowers. Headlines . Investors can invest in this IPO with a 3-5 years time frame. Eastern is also the No. This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. FEATURED FUNDS ★★★★★ Mirae Asset Emerging Bluechip Fund Direct-Growth. Eastern first needs to conduct its IPO to raise the additional capital. It also provides less risk than a traditional IPO. It's when a company “goes public.” Investing in an IPO is a lot like playing a video game — you need to hit the right button at just the right moment. Dow Jones Loses Gains, Nasdaq Falls 2% After Surprise Jump in U.S. Jobs, Oracle Clears New Buy Point; Will These Stocks Break Out? This does not mean there still isn't a lot of risk in Eastern's portfolio. Conditions change by the day, so the bank may want to wait until things stabilize unless one of the banks on its radar approaches it looking to sell. The more than 200-year-old bank, originally founded 1818, has filed plans notifying the U.S. Securities and Exchange Commission (SEC) of its plans for an initial public offering (IPO). It's a bit smaller at $4.1 billion in assets, but has a similar footprint as Eastern, with most of its business in Massachusetts and a healthy presence in New Hampshire and Rhode Island as well. Nifty 15,174.80 76.4. Independent could also give Eastern more of a presence in Worcester, the second-largest city in Massachusetts. The $12.3 billion-asset Eastern disclosed in a regulatory filing Thursday that it expects to raise $1.3 billion to $1.7 billion through an initial public offering that should take place later this year.. Eastern Bankshares will be the holding company. Meanwhile, Independent is down by about 37% from where it began the year, but still trading way above tangible book value and around book value, and I would expect Eastern will trade at a level more like that of Independent. Basics of an IPO: How they work. The IPO is expected to take place later this year. But considering it had less in deferrals than its competitors at the end of the second quarter and has issued more PPP loans than they have, I would think Eastern should be able to trade at a valuation toward the higher end of its peer group. Stock Advisor launched in February of 2002. But it still is a good sign that Eastern was in a better position on deferrals than its peers as of June 30. ... Latest News All Times Eastern. Then it will need to assess the market to see where the economy stands and the status of the coronavirus. PPP loans come with fees for banks, which will boost interest income when the loans are forgiven. Eastern Bank, America's largest mutual savings bank, is going public in what could be a $2 billion IPO. I thought the bank's second-quarter results showed promise. ... especially if a bank it wants to buy is going for a significant premium. However, if you pride yourself on finding the best company stocks to buy, you might be drawn to the potential returns of IPO investing. Bram Berkowitz mainly writes in the financials bureau covering the banking sector. This struck me as odd considering both are commercial players in the same market. If Eastern doesn't do a merger of equals, then two other banks it might look at are Brookline Bancorp or Meridian Bancorp. Eastern Bank ranked as the No. Equitas Small Finance Bank is one of the largest small finance banks in India with diversified asset portfolio. Eastern is pricing its IPO at $10 per share, which is common for mutual IPO conversions. But make no mistake, a huge shakeup to the Boston banking scene could be coming. While all of these banks value their brand, a merger of equals would make a certain amount of sense. The number of banks is down 7% from the end of 2015, providing fewer candidates for public offerings. Shopify Inc. (TSX:SHOP)(NYSE:SHOP) had an incredible run, so investors should consider taking profits and putting it in more opportunistic areas of the market. This bank was the largest small finance bank in India in Fiscal 2019. It opened the day at USD$18.12 after a previous close of USD$17.88. The CSB Bank IPO comprises a fresh issue of shares worth Rs 24 crore and an offer for sale (OFS) of 1.97 crore shares worth Rs 385 crore by existing investors, according to the report. The bank itself has made seven acquisitions over the past decade, and based on the company's quarterly earnings calls, it seems like CEO Chris Oddleifson really enjoys running the bank and making acquisitions, so it's unclear if he'd be willing to relinquish control. Rivers maintains the IPO will allow the bank to continue to serve its communities at the same level, or make even bigger investments. Both are in the $6 billion asset range, have lots of branches overlapping with Eastern's footprint, a heavy emphasis on commercial loans, and a presence in other New England states. ... Investors with a medium-term perspective can buy the stock of Gateway ... What makes Petronet LNG a good long-term bet. Currently, Brookline is trading at roughly 100% of tangible book value, while Meridian is trading at about 77% of tangible book value. Investors can bid for a minimum of 50 shares with a capital of over Rs. @themotleyfool #stocks $INDB $BHLB $STT $BAC $SAN $JPM $PNC $CFG $BRKL $HONE $EBSB, Independent Bank Corp (Mass) (INDB) Q4 2020 Earnings Call Transcript, Bank M&A: The Buyers Are Ready, but Now They're Waiting on the Sellers, Independent Bank Corp (Mass) (INDB) Q3 2020 Earnings Call Transcript, Independent Bank Corp (Mass) (INDB) Q2 2020 Earnings Call Transcript, Independent Bank Corp (Mass) (INDB) Q1 2020 Earnings Call Transcript, Copyright, Trademark and Patent Information. Eastern Bank is good with technology and has developed several fintech companies in house. Equitas Small Finance Bank IPO – Should you invest? Investors have given thumbs up to quality IPOs only in the recent times. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Another possible acquisition target for Eastern could be HarborOne Bancorp. Equitas Small Finance Bank IPO opens: Should you subscribe? Generally, I prefer to see banks make their higher loss provisions in the first quarter, followed by lower provisions in subsequent periods -- especially at smaller banks that know their customers well -- because it often indicates that management is thinking conservatively. 5Y Return. Now, we don't have an update for Eastern about how its deferrals are trending, but based on what Berkshire Hills, Brookline, and other banks have reported, its quantity of loans in deferral should have declined since then. Eastern Bank, which is gearing up to go public on the Nasdaq with the ticker "EBC," recently released its second-quarter earnings report in a filing with the Securities and Exchange Commission. Equitas Small Finance Bank IPO would open for subscription on October 20, 2020. Numerated developed a program specifically for PPP, which could be one reason Eastern was able to outperform its peers on PPP volume. Fill in the details as required and submit your application. Eastern CEO Bob Rivers has said that with the IPO, he envisioned Eastern growing into a $40 billion bank within 10 years. March 5, 2021 | finance.yahoo.com. Singtel is one of those quintessential Singaporean stock that every Singaporean knows (and may even own). Stock Advisor launched in February of 2002. The bank, established in 1818, plans to raise $1.3 billion to $1.7 billion through an initial public offering (IPO) this year, according to a regulatory filing. Brookline's stock is off by about 47%, and the bank is trading below both book value and tangible book value. Eastern Bank, the U.S.'s largest mutual savings bank, plans to go public, the Boston-based firm announced Thursday. Its IPO issue price is between Rs 32 to Rs 33 per share. Not only does the bank have an insurance division that could pair with Eastern's, but Independent would help Eastern better fill in its footprint in the southern part of Massachusetts and Cape Cod. One stock that might be an intriguing choice for investors right now is Eastern Bankshares, Inc. EBC. Before you get swept up in 2020 IPO news, here are seven reasons not to buy an IPO. Watch the #CSB Bank #IPO review to know whether you should apply for #CSBIPO? The bank saw "criticized loans" -- those that face some danger of default but aren't necessarily past due -- rise in certain segments of its commercial book between the first and second quarters, which could be a sign of pain ahead. Prior to The Motley Fool, he wrote about and covered community and regional banks in New England for The Warren Group. Enter in the 16 digit depository participant ID provided to you by Upstox (the brokerage) and bid for the amount of shares you want to buy. If you’re content to stick with low-cost investment funds, you’ll probably be fine passing on the IPO hype. Should you invest in Equitas Small Finance Bank IPO? But the bank also gave an additional 7.5 million shares, equal to 4 percent of the shares sold through the IPO, to the Eastern Bank Charitable Foundation. Any company launching an IPO in Australia must lodge a prospectus with the Australian Securities and Investment Commission (ASIC), which contains important information you need to know about the company and the offer. After that, complete the following criteria: Order type. Its issue share price is also reasonably priced. Eastern Bank in Boston, the nation's oldest and second-largest mutual bank, is going public to prepare for a post-pandemic world. The bank pursued the IPO to put it in a better position to buy competitors. 5 Wall Street equities research analysts have issued "buy," "hold," and "sell" ratings for Eastern Bankshares in the last twelve months. Eastern also pointed to the need for greater investment in technology as a chief reason for going public. Given that nearly 74% of Eastern's total loan portfolio is tied up in the commercial sector, you'll definitely want to watch those metrics that reflect its credit quality. Its revenues grew at 19% CAGR in last 5 years. Back in 1993 when Singtel IPO-ed, there was a scheme known as Singtel Discounted Shares (SDS), which allowed Singaporean CPF members to purchase Singtel shares at a discounted price. FEATURED … All of this suggests that Rivers is looking to make a big deal happen. Choice Broking has a 'neutral' rating on the Equitas Small Finance Bank IPO. Instead of taking six to nine months like a traditional IPO, a SPAC IPO can be accomplished in weeks. The consensus among Wall Street equities research analysts is that investors should "buy" Eastern Bankshares stock. Eastern Bankshares is listed on the NASDAQ and employs 1,800 staff. For instance, if you have $1,000 to invest and the price of the IPO is $10, you can buy up to 100 shares of the stock. One of those, Numerated, which it spun off, helps banks leverage artificial intelligence and machine learning to approve small-business loans more quickly, sometimes in as little as five minutes. In 2018, JPMorgan Chase, the largest bank in the U.S., announced that it would open 50 retail branches in the Boston area, an initiative that is showing great promise so far. Eastern Bankshares has filed to raise $1.8 billion in an IPO of its common stock, according to an S-1 registration statement.The firm operates a network of community bank … YES Bank IPO - Read YES Bank IPO Review and Analysis on The Economic Times. Bram Berkowitz 6/22/2020. 23.76 % Invest Now. How do you buy IPO stock? NSE Gainer-Large Cap . Be sure to read the preliminary prospectus prior to submitting a conditional offer to buy in a new IPO. JPMorgan CEO Jamie Dimon even said he thinks the bank could one day be a top three deposit market share holder in greater Boston. When banks adopt CECL, they usually see an increase in their total reserves, which could explain the lower coverage ratio. Market data powered by FactSet and Web Financial Group. The $12.3 billion-asset Eastern disclosed in a regulatory filing Thursday that it expects to raise $1.3 billion to $1.7 billion through an initial public offering that should take place later this year.. Eastern Bankshares will be the holding company. “Cash can’t compete with a bank that can offer stock trading at 2.5x tangible book.” While there is an expectation that IPO activity can remain steady next year, some constraints exist. The company was founded in 1818 and is headquartered in Boston, Massachusetts. Quantum Securities has a ‘subscribe' rating. And it's only going to get more competitive. The bank's net interest margin -- the difference between what it makes on interest-earning assets such as loans and what it pays out on deposits -- fell by 54 basis points from 4.03% to 3.49% between the end of the Q2 2019 and the end of Q2 2020. The following tips should give you some helpful guidance on how to buy an IPO. The bank plans to be more active in … Eastern Bankshares, Inc (EBC) is a leading banks-regional business based in the US. Let's take a look at who Eastern might acquire or merge with. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. Boston-based Eastern Bank is seeking to raise up to $2 billion in an initial public offering disclosed Thursday — a move sure to send shockwaves through the state’s banking sector. Rivers maintains the IPO will allow the bank to continue to serve its communities at the same level, or make even bigger investments. Eastern got earnings back on track and reported deferral levels at the end of the second quarter that were smaller than several of its direct competitors. The initial public offering was priced at $10 per share, and the stock (ticker: EBC) closed at $12.15. If you’re wondering whether you should invest in an IPO, the answer will depend on your general investment philosophy. Opendoor IPO: Stock Listing via Chamath Palihapitiya’s SPAC; Best Long-Term Stocks to Buy and Hold for the Next 10 Years; Cheapest Stocks Under $1 on the Market; The Best Side Hustles for 2020 Credit quality has been one of the most difficult aspects of banks to analyze this year because they have granted many borrowers deferrals on loans as a result of the coronavirus pandemic. This past decade’s largest local banking deal was Rockland Trust’s acquisition of Blue Hills for $727 million in … Eastern Bank announced today that Eastern Bankshares, Inc. (the "Company"), the proposed stock holding company of Eastern Bank, is commencing its stock offering in connection with Eastern… Total revenue of close to $150 million was down by about $8.5 million year over year, but that shouldn't be too big of a surprise considering that the Federal Reserve lowered the benchmark fed funds rate rapidly from 2% to zero in March. Nifty 14,956.20 18.1. As a percentage of its loan book, Eastern had fewer deferrals than several of its peers as of June 30. Sun Country Airlines Holdings pre-IPO overview from MarketWatch. Then it will need to assess the market to see where the economy stands and … You must be a client of the bank or the Depository Participant to bid for shares. As of the end of the second quarter, the total amount that Eastern had set aside to cover potential loan losses was equivalent to 1.17% of its loan book. If you don't get in on the IPO on the ground floor, so to speak, you can always buy shares once the stock is trading. Eastern first needs to conduct its IPO to raise the additional capital. SBI Life Insurance Ltd is India’s largest private life insurer in India. As mentioned, the SPAC IPO process is faster and requires fewer steps. The underwriter in a new stock offering serves as the intermediary between the company seeking to issue shares in an initial public offering (IPO) and … Along with the bank's strong performance in the Paycheck Protection Program and strong capital position, Eastern should be able to trade toward the higher end of its peer bank group. Hopefully, the bank can release an update on deferrals before it goes public. The latest price was USD$17.92 (25 minute delay). Visit the website of the bank or the Depository Participant that provides for making application for the IPO. Prior to The Motley Fool, he wrote about and covered community and regional banks in New England for The Warren Group. Returns as of 03/12/2021. 288. Dharawat Securities is a household name in dealing of Unlisted Stocks. Whether you decide to buy the Airbnb IPO ultimately comes down to your own risk appetite and investing horizon. That's expected to start occurring in the fourth quarter and continue through next year. Could Eastern Bank's IPO Prompt a Wave of Mutual Savings Bank Demutualizations? Benchmarks . During the second quarter, Eastern Bank set aside roughly $8.6 million to cover potential loan losses, which was way down from the $28.6 million in credit loss provisioning the company made in the first quarter of the year. That's a lower ratio than a lot of other banks I have looked at, especially because Eastern is such a heavy commercial player. Cumulative Growth of a $10,000 Investment in Stock Advisor, Eastern Bank, Which Will Soon IPO, Shows Promise With Q2 Earnings @themotleyfool #stocks $BRKL $INDB $BHLB, Why Shares of FinVolution Group Are Dipping Today, This Could Be a Game Changer for MasterCard's Earnings, Seritage Growth Properties' Struggles Continue, 3 Dividend Stocks That Pay You Better Than Coca-Cola Does, 3 Acquisitions That Could Shake Up the Regional Banking Space, Copyright, Trademark and Patent Information. Quick Take. SBI Life Insurance IPO would open for subscription on 20 th September, 2017. *As of late August or September, Source: Bank financial statements. Returns as of 03/12/2021. 7 Reasons You Shouldn't Buy an IPO. Equitas Small Finance Bank IPO Review – Should you invest or Avoid? That could be a nice lift for Eastern as its net interest income continues to suffer amid the low-rate environment. Berkshire Hills could also be in the cards, although in merging with it Eastern would be venturing off into a massive geographic expansion way beyond its normal footprint -- Berkshire Hills has a presence that includes upstate New York, New Jersey, and Pennsylvania. All the indices are at their peak level today, near to the peak. 14400. A merger of equals could be in the cards if Eastern looks at the $13.2 billion asset Berkshire Hills Bancorp or the nearly $12 billion Independent Bank Corp., the parent company of Rockland Trust. IPOs Are Risky One thing investors should ask themselves is whether they really want to invest on the ground floor of an IPO at all. Independent traded at 182% tangible book value at Wednesday's close, while Berkshire Hills traded for less than 47% of tangible book value. Cumulative Growth of a $10,000 Investment in Stock Advisor, Which Bank Will Eastern Bank Look to Buy After its IPO? Benchmarks . An initial public offering is the first sale of shares on the stock market by a formerly private company. The IPO price is determined by the investment banks hired by the company going public. The bank said in its prospectus that one of the reasons for the move is to be able to "pursue opportunistic acquisitions" in its current and bordering markets. All current IPOs from companies that have applied to list on the ASX are listed on the ASX website. BOSTON, MA, December 3, 2020 – Eastern Bank has been named by the U.S. Small Business Administration (SBA) as one of the top lenders to small businesses for SBA 7(a) and 504 loans. Emkay Global Financial Services has a ‘buy' recommendation on the issue. Emkay Global Financial Services has a ‘buy' recommendation on the issue. If you meet eligibility requirements and TD Ameritrade is participating in the IPO you are interested in, you can place a conditional offer to buy. Eastern to Make Transformational Donation to Eastern Bank Charitable Foundation Giving it a 4% Equity Stake . What to consider before you buy. Eastern Bank in Boston, the nation's oldest and second-largest mutual bank, is going public to prepare for a post-pandemic world. NSE Gainer-Large Cap . Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. But Eastern has not adopted the new current expected credit losses (CECL) accounting method, which requires banks to project losses on a loan as soon as that loan is put on the balance sheet. Rivers maintains the IPO will allow the bank to continue to serve its communities at the same level, or make even bigger investments. Then it will need to assess the market to see where the economy stands and … Quantum Securities has a ‘subscribe' rating. Market data powered by FactSet and Web Financial Group. BOSTON, MA, August 18, 2020 – Eastern Bank announced today that Eastern Bankshares, Inc. (the “Company”), the proposed stock holding company of Eastern Bank, is commencing its stock offering in connection with Eastern’s conversion from the mutual holding company structure to the stock holding company form of organization. Bumble (NASDAQ:BMBL) went public on Feb. 11 in a highly anticipated initial public offering (IPO). More » Cannabis Retailer Gives Stock Investors an Early Christmas Present Latest News: Get all the latest India news, ipo, bse, business news, commodity, sensex nifty, politics news with ease and comfort any time anywhere only on Moneycontrol.