18 MAY / JUNE 2019 Michael A. Renninger Principal Renninger & Associates LLC mrenninger@ renningerllc.com Renninger & Associates LLC is a Diamond Associate Member of the Indiana Bankers Association. Indiana Statistics Click on the hand icon in HB Digital to access statistics through March 31, 2019, Jan. 31, 2019, and Dec. 31, 2018, or visit: indianabankers.org/bank-thrift-stock-update INDIANA BANK & THRIFT STOCK UPDATE The Size, Pricing and Profitability Reports for Indiana banks and thrifts as of March 31, 2019, Jan. 31, 2019, and Dec. 31, 2018, are available by clicking on the hand icon on this page or by visiting the designated website location. These Reports present the stock price changes for the 33 Indiana banks and thrifts that are traded on the NASDAQ and Over-The-Counter (OTC) markets over the prior two years, one year and year-to-date, in addition to pricing and performance metrics. Selected banks headquartered outside Indiana, four broad market indices, and five bank and thrift indices are also tracked. While the year-to-date broad indices at March 31, 2019, increased an average of 13.79%, the year-todate bank and thrift indices increased only 9.02%. The bank and thrift indices continue to significantly underperform the broad indices over the last one-year and two-year time horizons. For instance, while the average for the bank and thrift indices is basically flat over the two-year time horizon, the broad indices average increased over 24%. It appears that the market consensus is that, while bank profitability faces headwinds from a flatter yield curve and increasing deposit costs, the broader U.S. market has greater growth prospects. The median for Indiana’s NASDAQ-traded bank stock prices has increased 7.01% year-to-date, outpacing selected banks headquartered outside Indiana (5.7%) and Indiana’s OTC banks stocks (1.04%). However, Indiana’s OTC banks stocks have outperformed Indiana’s NASDAQ-traded banks and selected banks headquartered outside Indiana over the one-year and two-year time horizons. Indiana is well represented in a 2018 S&P Global Market Intelligence Report which ranked the nation’s top 50 community banks with assets between $3 billion Stock Analysis Review as of March 31, 2019 and $10 billion. The ranking was based on highest return on average tangible common equity before tax, highest loan growth rate, lowest efficiency ratio, highest net interest margin, lowest adjusted Texas ratio, and lowest net charge offs as a percent of average loans. Congratulations to: Merchants Bancorp (6th); First Merchants Corp. (15th); German American Bancorp (21st); Lakeland Financial Corp. (32nd); and First Bancshares (Centier) (50th). With five banks in the top 50, Indiana had the third highest concentration in the list, behind California (9) and Texas (6). Unfortunately, no Indiana banks were listed in S&P Global Market Intelligence’s ranking of the top 100 community banks under $3 billion in assets. Please contact me if you would like to have a copy of these reports. No mergers and acquisitions have been announced involving Indiana-based institutions since German American Bancorp announced the acquisition of Citizens First Corp of Bowling Green, KY, on Feb. 21, 2019, which was addressed in my last report. Horizon Bancorp completed its acquisition of Salin Bancorp on March 26, 2019. Completion of First Merchants’ acquisition of MBT Financial of Monroe, MI, and First Financial Corporation’s acquisition of Hopfed Bancorp of Hopkinsville, KY, are pending. With its acquisition, First Merchants is expected to exceed $10 billion in assets. HB
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