Needham Bank (NASDAQ: NBBK — $555.52m) IPOed on Thursday ( December 28, 2023). There was a ~40% pop on the first day which means investors are clearly excited by the now public opportunity and it is not more expensive for the rest of us. In recent years the bank has grown revenue by ~28% annually and grew net income by 40% in 2022 on track for at least ~22% growth this year. This is very encouraging and I don’t know many other businesses doing the same much less a bank doing it. The bank is currently priced at 1.6x Price/Book which isn’t cheap, but their reinvested earnings should be useful for growing book value. Current assets total at $4.2b, $3.7b of which is a loan portfolio. There is also a little over $100m of cash on the balance sheet.
Needham Bank IPO (Issue #87)
Needham Bank IPO (Issue #87)
Needham Bank IPO (Issue #87)
Needham Bank (NASDAQ: NBBK — $555.52m) IPOed on Thursday ( December 28, 2023). There was a ~40% pop on the first day which means investors are clearly excited by the now public opportunity and it is not more expensive for the rest of us. In recent years the bank has grown revenue by ~28% annually and grew net income by 40% in 2022 on track for at least ~22% growth this year. This is very encouraging and I don’t know many other businesses doing the same much less a bank doing it. The bank is currently priced at 1.6x Price/Book which isn’t cheap, but their reinvested earnings should be useful for growing book value. Current assets total at $4.2b, $3.7b of which is a loan portfolio. There is also a little over $100m of cash on the balance sheet.