NexBank Capital recently had another initial public offering that saw the total issued share capital rise to a high of $155 million up by $80 million. This was after the bank announced completion of an overly subscribed private placement of unsecured notes to seniors. These securities will earn a fixed rate of 5.50% for 5 years, mature in March 16, 2026 and are callable as from March 15, 2021. After the five years, they earn interest as per the current LIBOR which are determined by a spread of three months. According to Kroll Bond Rating Agency, the security falls under the BBB investment grade rating. The operation saw Sandler O’Neill & Partners, L.P. act as the lead placement agent. The bank sought to obtain more funds mainly to repay debts.
Speaking in a forum, John Holt the President and Chief Executive Officer of NexBank said that the over-subscription was a sign of investor confidence in the business. He expresses confidence in the company using the raised capital efficiently to continue increasing its worth and meeting stakeholder needs. These sentiments were echoed by Matt Siekielski; the Executive Vice President and Chief Operating Officer. He further states that as part of their main business strategy to grow capital they have raised above $200 million in debt and equity over the last one year which they plan plough back to the business.
NexBank is a leading financial institution based in Dallas offering commercial, mortgage and institutional banking services to individuals and institutions clients. The tier 1bank had a leverage ratio of 8.13% and total risk-based capital ratio of 13.14% as at December 31, 2016. NexBank Capital, Inc. set a record in 2016 on their balance sheet items when they reported total assets of $4.64 billion, total deposits over $3.22 billion, and total loans worth $2.83 billion. This depicted a 71%, 72% and 44% growth rate for assets, deposits and loans respectively from 2015. Net income for 2016 was also above $83 million, in comparison to $53 million for the previous year. The return on average equity stood at 35.48% with NexBank return on average assets being 2.47% in 2016.