First Security Bancorp's IPO: Bank Braving Terrible Market

Business & Technology :

Despite a lifeless IPO market and the suffering of bank stocks in particular, another local bank is hoping to raise millions from investors.

First Security Bancorp in Mountlake Terrace unveiled plans Monday to raise $19 million to $30 million by selling shares for $10 each.

Anchor Bank of Lacey said last month that it hopes to raise $38 million to $60 million.

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Comments

[Ohg]

Are the Banks and Auto Makers so central to our survival that they fall into the category of Utility - like electricity and water? ....................................

http://thefiresidepost.com/2008/11/16/the-utility-of-socialism/

[Sundialsvc4]

Yes, as a matter of fact, they are and they do.

I happen to own quite a few shares of well-run banks. They're out there. They're not big household names except in the areas where they do business, generally doing business with people they know. And you can count on a steady return from them: you can "take that to the bank."

To the honest bankers out there ... and I have not looked into this one ... a "tough market" is a tough market. That's why bankers are supposed to be conservative. It took a lot of chutzpah for "the banks that I like so much" to have gotten out of lines-of-business (like residential mortgage) that they perceived to be "too risky" even though they were "doing so well" and "making so much money." But they didn't forget their fundamentals, and they'll weather this storm.

So yes... you absolutely have to have bankers and banking. But, "there ain't no such thing as easy money," and bankers above all others are supposed to know that. They're supposed to have the nicest house in town from "Here's $1.00. In six months pay back $1.06. I'll keep my two cents and put two cents into the bank's reserves and pay two cents to my shareholders."

[curiousasheck]

This is what happens when money is consolidated into the hands of a few and the country doesn't have enough money to run on.

[politicogal2]

Ahhh grrr. I cannot worry anymore about the economy.

Visit the VABOOMER BLOG

to read a zen perspective about prospering.

[TheComingDepression]

Ok so multiply 30 million x 10,000 banks minus the 90% dollar retraction add 330 million people..what do you get? Riots, food shortages and tax increases. Read it: www.thecomingdepression.blogspot.com

[OtayPanky]

I'll take 1000 shares. I'm almost out of toilet paper.

[Sundialsvc4]

I would demand to see the bank's exposure. I want to know who they are lending to, at what rate, and with what observed historical performance. I want to know precisely what the bank would be doing with that infusion of cash: exactly what percentage of it will be used to "fill up a hole" versus being applied to build up the business.

Banking OUGHT to be a solid, "dependably-profitable, if rather boring and stodgy" business. The business that pumps $1.00 into the ground and pulls up $1.06 ... "not $1.08 or $1.10 but by-gawd you can be sure of $1.06" ... six months later. It used to be that way, but I'm not going to automatically take for granted that any company which wants to float an IPO is going to do that. "Yes, I want to be convinced. But I shall require to be convinced."