Eastern Bank nearly doubles the size of its charitable foundation after IPO Company has donated 4 percent of its newly issued shares, worth about … Financials. With the economy struggling, many banks have been forced not only to increase the amount of cash they are setting aside for potential loan losses, but also to grant loan deferrals to many customers. The problem with bank acquirers is that their stock prices tend to get dinged up after an acquisition, and then the banks can come under a lot of pressure to make that acquisition accretive enough to earnings to make up for all the money they just spent. Eastern Bank announced today that Eastern Bankshares, Inc. (the “Company”), the proposed stock holding company of Eastern Bank, is commencing its stoc It's a risky time to be a bank, and it may be a bit of a bumpy ride in the beginning, but I believe Eastern is a good long-term investment -- certainly for current depositors that get to buy shares early, and for the public. 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… Let's look at what we can expect from this IPO and whether it can be successful. No. While certainly exciting, acquisitions are more difficult to pull off than many realize, and the ends often don't justify the means. It says that if Eastern is able to sell the maximum number of the shares in its IPO (roughly 175.4 million) at $10 per share, it would be trading at a price-to-book-value ratio of 57.57%. Over- allotment shares (TBC) IPO Period n/a IPO Price: n/a At this level, Eastern also trades at a price-to-earnings multiple of roughly 20. Veuer’s Sean Dowling has more. With the economy struggling, many banks have been forced not only to increase the amount of cash they are setting aside for potential loan losses, but also to grant loan deferrals to many customers. Eastern Bankshares in Boston has its work cut out for it as it enters the new year. Eastern showed some of its tech prowess when it originated roughly $1.1 billion in Paycheck Protection Program loans, more than several of its direct competitors. Will list on the NASDAQ under ticker EBC. Eastern also hired a chief digital strategist in 2018 and has a fintech incubator at the bank. Eastern Bank Announces Plan For Conversion Into Public Company Conversion to Provide Additional Resources to Grow Customer Offerings, Accelerate New Business Opportunities & … The article Massachusetts bank Eastern Bankshares raises $1.8 billion in mutual-to-stock conversion and Nasdaq listing originally appeared on IPO … Eastern is a mutual holding company (never did a first step conversion) that is converting to a full stock form organization. But not this, Jim Cramer on Chesapeake Energy filing for bankruptcy. Mutual banks are not start-ups -- in fact, they are the opposite. It opened the day at USD$18.12 after a previous close of USD$17.88. As a mutual bank, Eastern has a unique corporate structure in that it's technically owned by its depositors. Have you ever wondered how much these essential workers make? Like us on Facebook to see similar stories, Minneapolis considering settlement with George Floyd's family, Former Fox host Eric Bolling considering congressional campaign, Here's which sectors are poised for growth in 2021 if the pandemic winds down. Just because you’re working from home doesn’t mean your boss can’t keep tabs on your every move. Its common equity tier 1 (CET1) capital ratio, a measure of core capital expressed as a percentage of risk-weighted assets, is 12.42%, a big number for a bank of Eastern's size. The key will be watching to make sure that Eastern is making the right acquisitions that fit in with its strategic plan, and that it doesn't overpay. Americans rely on mail carriers to send and receive their mail. Eastern Bankshares, Inc is primarely in the business of savings institution, federally chartered. Returns as of 03/12/2021. Eastern Bank (NASDAQ: EBC) is gearing up to go public in mid-October in what will be one of the few bank IPOs of the year. Mutual banks are not start-ups -- in fact, they are the opposite. Mutual savings institutions are often seen as good investments because they are frequently acquisition targets, which often result in a nice premium. The key will be watching to make sure that Eastern is making the right acquisitions that fit in with its strategic plan, and that it doesn't overpay. [3] With 95 branches, Eastern had a 3.2% market share in Massachusetts in 2016. Here’s how: Eastern’s foundation will get 4 percent of the IPO proceeds, estimated at $60 million. As a mutual bank, Eastern has a unique corporate structure in that it's technically owned by its depositors. VRTX | Complete Vertex Pharmaceuticals Inc. stock news by MarketWatch. Bram Berkowitz has no position in any of the stocks mentioned. Eastern Bank (NASDAQ: EBC) is gearing up to go public in mid-October in what will be one of the few bank IPOs of the year. Furthermore, most of these mutual banks were not making complex derivative trades during the Great Recession, and are considered fairly safe. Technology is going to be one of the most important aspects for banks, and having a culture that fosters technology and looks to innovate is important. Stock Advisor launched in February of 2002. Eastern Bank in Boston, the nation's oldest and second-largest mutual bank, is going public to prepare for a post-pandemic world. But it does show the potential of the stock. Eastern showed some of its tech prowess when it originated roughly $1.1 billion in Paycheck Protection Program loans, more than several of its direct competitors. While you never know, Eastern appears to be more of an acquirer than a target. Market data powered by FactSet and Web Financial Group. Eastern also hired a chief digital strategist in 2018 and has a fintech incubator at the bank. Eastern turned a profit of more than $135 million in 2019 and has built up more than $1.6 billion in retained earnings. That means the bank's book value is somewhere around $17.50 per share ($17.50 x 0.57 = ~$10) in this range. When does the company's lock-up period expire? Its common equity tier 1 (CET1) capital ratio, a measure of core capital expressed as a percentage of risk-weighted assets, is 12.42%, a big number for a bank of Eastern's size. The bank plans to sell anywhere from roughly 175.4 million shares to more than 201 million shares of common stock in its IPO. While the bank is still run by a standard management team, retail depositors with as little as $50 in an account get to participate in its IPO. Eastern is pricing its IPO at $10 per share, which is common for mutual IPO conversions. Shares are expected to begin trading on October 15 under the ticker symbol ‘EBC’, the company said. Before the pandemic hit, most of Eastern's competitors were trading well above book value. With roughly 70% of its loan book tied up in the commercial sector, Eastern has not been immune, modifying roughly 9.4% of its total loan book in terms of volume at the end of June. This should be interesting to watch not only because it's going public in an extremely uncertain environment for the banking industry, but also because it's a mutual savings bank -- and not just any mutual, but the biggest one left in the country. Eastern Bankshares Inc. (Eastern Bank) $1,800,000,000 2 American Well Corp. $742,000,000 3 Duck Creek Technologies Inc. $405,000,000 … Ford just unveiled its 2021 tech-savvy pickup — here's what's new, Amazon looking to get into the self-driving car business buys startup for $1B, Economic outlook as more Americans file for unemployment, 5 items you can sell for additional income, 5 practical reasons to put purchases on credit, Disney World workers petition to delay reopening of theme park, 500 Delta staff have tested positive for COVID-19 and 10 have died. Should you save for retirement or pay down debt? Eastern Bankshares, Inc. (EBC) Stock Price: $17.92 USD 0.04 (0.22%) Updated Mar 5, 2021 4:00 PM EST - Market closed. Bram Berkowitz mainly writes in the financials bureau covering the banking sector. According to its official history, Eastern Bank can trace its corporate roots back to 1818 and the foundation of Salem Savings While the bank is still run by a standard management team, retail depositors with as little as $50 in an account get to participate in its IPO. That means the bank's book value is somewhere around $17.50 per share ($17.50 x 0.57 = ~$10) in this range. Find the latest Eastern Bankshares, Inc. (EBC) stock quote, history, news and other vital information to help you with your stock trading and investing. The newly created firm, SVF Investment Corp., plans to list on the Nasdaq under ticker symbol "SVFAU." Since its founding in 1818, Eastern has been committed to providing competitive financial products and services and an outstanding customer experience, while making meaningful contributions to the communities it serves. Mutual savings institutions have a history of performing well, and Eastern has been around for more than two centuries. Eastern Bankshares trades on the NASDAQ under the ticker symbol "EBC." The latest information on initial public offerings (IPOs), including latest IPOs, expected IPOs, recent filings, and IPO performance from Nasdaq. While certainly exciting, acquisitions are more difficult to pull off than many realize, and the ends often don't justify the means. The problem with bank acquirers is that their stock prices tend to get dinged up after an acquisition, and then the banks can come under a lot of pressure to make that acquisition accretive enough to earnings to make up for all the money they just spent. Even if you are not a depositor, mutual banks are still typically good investments. Eastern Bankshares' lock-up period expires on Tuesday, April 13th. Eastern is pricing its IPO at $10 per share, which is common for mutual IPO conversions. 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 risky time to be a bank, and it may be a bit of a bumpy ride in the beginning, but I believe Eastern is a good long-term investment -- certainly for current depositors that get to buy shares early, and for the public. The economy is currently struggling because of the pandemic, and rates could be low for a while, which hurts loan margins. Microsoft and partners may be compensated if you purchase something through recommended links in this article. The issue right now is that the pandemic has made all banks risky, primarily because they are closely linked to the economy and very sensitive to interest rates. While you never know, Eastern appears to be more of an acquirer than a target. Days after Eastern Bank … Not only do many depositors, employees, and other stakeholders purchase shares in the initial subscription because of how cheap they are, but there is also a group of people who know about mutual offerings and open bank accounts at mutual institutions hoping for them to go public. In its prospectus, the bank said it intends to use proceeds from the IPO to "pursue opportunities to acquire banks in our existing and contiguous markets that create attractive financial returns." Technology is going to be one of the most important aspects for banks, and having a culture that fosters technology and looks to innovate is important. Mutual savings institutions are often seen as good investments because they are frequently acquisition targets, which often result in a nice premium. Prior to The Motley Fool, he wrote about and covered community and regional banks in New England for The Warren Group. 160,000,000 existing shares 3. Eastern is pricing its IPO at $10 per share, which is common for mutual IPO conversions. 64,000,000 newly issued shares 2. For this reason, management at mutuals want to price shares as low as possible before the market prices the stock, so stakeholders can hopefully enjoy a nice bump as soon as it hits the public markets. So these subscriptions are usually oversubscribed and typically open on the public markets higher than $10 per share. This money can be used to absorb unexpected losses if need be. 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. Another thing I like about Eastern is that unlike most small mutuals, this bank is actually strong when it comes to technology. Eastern is pricing its IPO at $10 per share, which is common for mutual IPO conversions. Days after IPO, Eastern makes a (non-bank) acquisition By Greg Ryan – Law and Money Reporter, Boston Business Journal Oct 21, 2020 That didn’t take long. Additionally, the bank has a lot of capital built up. They are targeting an issuance of 175 million shares at $10, for an IPO of $1.75B (can be up or downsized). The economy is currently struggling because of the pandemic, and rates could be low for a while, which hurts loan margins. Eastern Bank a.goodman@easternbank.com 781-598-7847 Paul Alexander Eastern Bank p.alexander@easternbank.com 781-596-4490 Investor contact: Jill Belliveau Eastern Bank InvestorRelations@easternbank.com Eastern Bank, the U.S.'s largest mutual savings bank, plans to go public, the Boston-based firm announced Thursday. documents---0.00091791152954102. Please make sure you've selected a ticker. In its prospectus, the bank said it intends to use proceeds from the IPO to "pursue opportunities to acquire banks in our existing and contiguous markets that create attractive financial returns." Furthermore, most of these mutual banks were not making complex derivative trades during the Great Recession, and are considered fairly safe. How you can save a million bucks for retirement. IPO Details Eastern is raising $1.8 billion in gross proceeds from an IPO of approximately 175 million shares of its common stock, sold at a price of $10.00 per share. Even if you are not a depositor, mutual banks are still typically good investments. This doesn't mean Eastern will start trading at book value, especially right now while many banks are trading below it. It developed the fintech company Numerated, which can approve some small-business loan applications in just minutes. As part of the conversion, Eastern intends to give the Eastern Bank Charitable Foundation a 4% equity interest in Eastern Bankshares. So these subscriptions are usually oversubscribed and typically open on the public markets higher than $10 per share. The issue right now is that the pandemic has made all banks risky, primarily because they are closely linked to the economy and very sensitive to interest rates. If you are a depositor at a mutual bank when it goes public, I am almost always going to recommend purchasing shares, because these offerings almost always fill up. The Motley Fool has no position in any of the stocks mentioned. Eastern Bank Ltd. Eastern Bank Ltd. provides commercial and retail banking services. Many are extremely old (Eastern was founded more than 200 years ago), and therefore are often profitable and have established themselves in their respective markets. Eastern Bankshares, Inc (EBC) is a leading banks-regional business based in the US. Additionally, the bank has a lot of capital built up. Image source: 2018 Eastern Bank annual review. For this reason, management at mutuals want to price shares as low as possible before the market prices the stock, so stakeholders can hopefully enjoy a nice bump as soon as it hits the public markets. Ticker: EBC. This doesn't mean Eastern will start trading at book value, especially right now while many banks are trading below it. At this level, Eastern also trades at a price-to-earnings multiple of roughly 20. It developed the fintech company Numerated, which can approve some small-business loan applications in just minutes. If you invested $1,000 in the Microsoft IPO in 1986, today it’d be worth $2,130,200 – that’s a total return of 212,920%, or 25% annualized returns every year for the past 34 years. Eastern Bankshares, Inc. is registered with the U.S. Security and Exchange Commission and incorporated in the state of Massachusetts. But that's actually a smaller amount of deferrals than some of Eastern's direct competitors, and given the way lots of community and regional banks have been trending, I would expect that deferrals have come down more by now. While going through Eastern's prospectus, I came across this independent appraisal done for the bank. CEO Bob Rivers also told The Boston Business Journal that he thinks Eastern can become a $40-billion-asset bank over the next decade. View real-time stock prices and stock quotes for a full financial overview. The stock of Eastern BankShares, the holding company which owns Eastern Bank, jumped more than 20 percent in its first day of trading Thursday … Before de-mutualizing in 2020, it was the oldest and largest mutual bank in the United States and the largest community bank in Massachusetts. 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 . This should be interesting to watch not only because it's going public in an extremely uncertain environment for the banking industry, but also because it's a mutual savings bank -- and not just any mutual, but the biggest one left in the country. With roughly 70% of its loan book tied up in the commercial sector, Eastern has not been immune, modifying roughly 9.4% of its total loan book in terms of volume at the end of June. Before the pandemic hit, most of Eastern's competitors were trading well above book value. 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. The latest price was USD$17.92 (25 minute delay). of IPO No more than 224,000,000 shares (35% of total issued shares after IPO) divided into 1. Another thing I like about Eastern is that unlike most small mutuals, this bank is actually strong when it comes to technology. Eastern Bank is a bank based in Boston, Massachusetts. Video: Here's which sectors are poised for growth in 2021 if the pandemic winds down (CNBC), How you can save $1 million for retirement, How much the most populous states pay mail carriers, Creepy ways your company can spy on you while you work from home, Major companies suspend social media advertising over online hate speech, This bookshop survived earthquakes and recessions. Eastern Bank Limited (EBL) is a commercial bank. The Motley Fool has a disclosure policy. Many are extremely old (Eastern was founded more than 200 years ago), and therefore are often profitable and have established themselves in their respective markets. This money can be used to absorb unexpected losses if need be. Mutual savings institutions have a history of performing well, and Eastern has been around for more than two centuries. Overview. Not only do many depositors, employees, and other stakeholders purchase shares in the initial subscription because of how cheap they are, but there is also a group of people who know about mutual offerings and open bank accounts at mutual institutions hoping for them to go public. But it does show the potential of the stock. Cumulative Growth of a $10,000 Investment in Stock Advisor, What to Expect from Eastern Bank's IPO @themotleyfool #stocks, 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. But that's actually a smaller amount of deferrals than some of Eastern's direct competitors, and given the way lots of community and regional banks have been trending, I would expect that deferrals have come down more by now. Eastern turned a profit of more than $135 million in 2019 and has built up more than $1.6 billion in retained earnings. A mutual for its first 202 years, the $15.5 billion-asset company completed a $1.8 billion initial public offering in October that left it flush with cash — and possibilities. It says that if Eastern is able to sell the maximum number of the shares in its IPO (roughly 175.4 million) at $10 per share, it would be trading at a price-to-book-value ratio of 57.57%. But before it converts to a public company and gives up its mutuality, insiders including depositors, employees, officers, directors, as well as the unique bodies of a mutual including the trustees and corporators get first dibs on shares. BOSTON, June 18, 2020 /PRNewswire/ -- Eastern Bank Corporation, the mutual holding company of Eastern Bank, today announced that its Board … Statistics. By comparison, $1,000 invested in the Apple IPO would be worth $1,262,380 today. The Company has six segments: Main operations (Onshore Banking), which deals with commercial banking … During the day the price has varied from a low of USD$17.63 to a high of USD$18.27. Show full articles without "Continue Reading" button for {0} hours. But before it converts to a public company and gives up its mutuality, insiders including depositors, employees, officers, directors, as well as the unique bodies of a mutual including the trustees and corporators get first dibs on shares. The company financial products and services, personal and commercial banking, trade … The bank plans to sell anywhere from roughly 175.4 million shares to more than 201 million shares of common stock in its IPO. CEO Bob Rivers also told The Boston Business Journal that he thinks Eastern can become a $40-billion-asset bank over the next decade. Additionally, I think one of the reasons Eastern is charging ahead with its IPO during the pandemic is because it wants capital available to make a big acquisition sooner while many banks are still trading at lower tangible book values. Let's look at what we can expect from this IPO and whether it can be successful. Eastern's subscription offering was not oversubscribed, raising $1.8 billion, but that's still toward the higher end of the range, and most mutuals don't attempt to raise billions of dollars like Eastern has. Eastern's subscription offering was not oversubscribed, raising $1.8 billion, but that's still toward the higher end of the range, and most mutuals don't attempt to raise billions of dollars like Eastern has. If you are a depositor at a mutual bank when it goes public, I am almost always going to recommend purchasing shares, because these offerings almost always fill up. Additionally, I think one of the reasons Eastern is charging ahead with its IPO during the pandemic is because it wants capital available to make a big acquisition sooner while many banks are still trading at lower tangible book values. While going through Eastern's prospectus, I came across this independent appraisal done for the bank.
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