Independent Banker - January 2021 - 51

THE KEYS TO IPO SUCCESS
1.
TAKE YOUR TIME.
According to Phil
Buffington, a partner with
Adams and Reese LLP based
in New Orleans, most banks
spend at least one year
planning a public offering.
" This can even stretch to
two years or longer in some
situations, " he says. " Making
sure that your bank has
experienced personnel to
help navigate the process
and oversee the public
company upon completion
is imperative. "
2.
ASSEMBLE THE RIGHT
TEAM. At Origin Bank
in Choudrant, La., the right
people and right partners
made a big difference to its
2018 IPO.
" We've been very
strategic and purposeful
when it comes to having
talented people who
make up our team, " says
chairman, president and
CEO Drake Mills. " It's also
critical to surround yourself
with the right external
partners because there's a
great deal of work that goes
into going public. "
Jason L. Rader, national
industry partner of financial
services for BKD CPAs and
Advisors in Springfield, Mo.,
stresses the importance of
investment bankers, legal
counsel and an audit firm
on your team who have
gone through this before.
" Going public is a very
time-consuming process
and you still have to manage
the bank while you're going
through the IPO, " he says.
" So, it's important to be
well-staffed because the IPO
will be a real strain on the
management team. "
3.
PREP EARLY. While
dealing with additional
reporting and registration
requirements is often cited
as a big drawback to going
public, Buffington says the
2012 Jumpstart Our Business
Startups (JOBS) Act and
amendments to existing
rules and regulations have
helped streamline the
process for community
banks. " Even the reporting
burden is reduced for
community banks with fewer
than 1,200 shareholders, "
he adds.
Jude Melville, president
and CEO of b1Bank in Baton
Rouge, La., says his bank
began publicly reporting
almost three years before
going public. " I'm not saying
that's the right path for every
bank, " he adds, " but I do
think that preparing for the
accounting and SEC side of
the house and getting ready
for the reporting challenge
is critical. "
GET USED TO BEING
TRANSPARENT.
Laura Hamilton, vice
4.
president
of OTC
Markets Group,
suggests that banks
build a track record of
experience in issuing
press releases for material
events like earnings
releases, changes in the
management structure
and contributions to
the community, such
as donations to charity
or volume of Paycheck
Protection Program
(PPP) loans.
" This helps demonstrate
transparency, " Hamilton
says. " You also need to be
able to tell the bank's story
to potential shareholders
and customers in real time
and at a moment's notice. "
5.
LOWER YOUR
EXPECTATIONS.
" Don't worry if the bank's
stock doesn't trade millions
of shares on the first day
of trading, " Hamilton says.
" It takes time to build
liquidity. Remember that
being a public company is
a marathon-not a sprint-
and that the real work starts
after going public. "
Independent Banker - January 2021

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