A Tale of Two Bank IPOs

Amalgamated Bank (AMAL) and Pacific City Financial (PCB), which went public last week, are both small commercial banks, but there the similarities end.

Located in New York City, Amalgamated was founded in 1923 by a clothing workers union to bring affordable banking to labor union members and support progressive causes. Today, with 14 branches, it is majority owned by Workers United, an affiliate of the SEIU, and continues its socially responsible activities in green energy, LGBTQ diversity and income equality. Since 2014 its new management team has improved results, but some key metrics are subpar and organic growth has been slow. Insiders, including Workers United, sold 100% of the $116 million offering.

On the West Coast, LA-based Pacific City has focused on the Korean-American community since 2003. With 13 branches, 11 in Southern California and 2 in New York, it has grown gross loans and total deposits at an 18% CAGR. The $48 million raised in IPO proceeds will fund working capital for further expansion.

Both banks priced below the midpoint of their ranges, with AMAL trading up slightly and PCB closing its first day below issue.



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