Monitor the subscription and community offering deadlines (September 10 and 17, 2026) and regulatory approvals from the Federal Reserve and Massachusetts Division of Banks. The stock will begin trading on Nasdaq after the offering closes; initial liquidity may be limited. The $10.00 IPO price represents a 65.7% price-to-book ratio at the midpoint, a discount to the peer group average of 99.2%.
Executive Summary
Narragansett Bancorp filed a pre-effective amendment (S-1/A) to its IPO registration statement, along with the agency agreement with Piper Sandler & Co. The offering is for up to 7,912,000 shares of common stock at $10.00 per share (subject to increase to 9,098,800 shares), representing 43% of the post-offering equity. The company, a newly formed Maryland corporation, will become the mid-tier holding company for BayCoast Bank ($2.9B assets) through a reorganization from a mutual holding company structure. The filing updates financials and formalizes the distribution arrangements but does not change the offering terms or valuation.
Key Financial Metrics
Key Facts
- Offering of up to 7,912,000 shares (expandable to 9,098,800) at $10.00 per share on a best-efforts basis; minimum 5,848,000 shares required to close.
- Post-offering ownership: Narragansett Financial Corporation 55%, public stockholders 43%, charitable foundation 2%.
- Net proceeds estimated between $55.5M (minimum) and $87.6M (adjusted maximum); at least 50% to be invested in BayCoast Bank, remainder to repay $95.0M subordinated debt, fund ESOP loan, and contribute $600K to foundation.
- BayCoast Bank had $2.90B total assets, $2.47B deposits, and net income of $1.2M for Q1 2026; interest and dividend income was $34.4M for Q1 2026.
- Common stock expected to trade on Nasdaq Capital Market under symbol NARA upon completion of the offering.
- The independent appraisal by RP Financial estimated pro forma market value midpoint of $160.0M, resulting in a price-to-book ratio of 65.7% at the midpoint.
Financial Impact
Offering size of $58.5M to $91.0M gross proceeds; net proceeds of $55.5M to $87.6M. Pro forma net income per share at midpoint is $0.09 (annualized Q1 2026).
Risk Factors
- The offering is subject to selling at least 5,848,000 shares and receiving final regulatory approvals; failure could delay or terminate the IPO.
- Non-performing loans increased to 1.97% of total loans at March 31, 2026, up from 0.23% at year-end 2024, driven by four commercial real estate relationships.
- The mutual holding company structure limits public stockholders' voting control (55% owned by Narragansett Financial Corporation) and restricts share repurchases for the first year.
- Pro forma return on equity is expected to be low initially (2.10% at adjusted maximum) until the proceeds are fully deployed.
- The company has $95.0M in subordinated debt with interest rates ranging from 3.875% to 8.5%, which will constrain dividend capacity.
Documents Analyzed
This report is based on 3 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| S-1/A Filing (NARA) — Batch item 1 | 0001193125-26-313847 |
| Document: d122170dex12.htm | 0001193125-26-313847 |
| Document: d122170dex109.htm | 0001193125-26-313847 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 27, 2026 today | 8-K | — | awaiting T+20 | — | — |
Oct 5, 2026 22d ago | 8-K | — | awaiting T+20 | — | — |
Aug 17, 2026 10w ago | 8-K | — | awaiting T+20 | — | — |
Jul 23, 2026 13w ago | S-1/A | — | awaiting T+20 | — | — |
US Market Status
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