Hoosier Banker 59 DIRECTORS / SENIOR MANAGEMENT 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 May 31, March 31 and Jan. 31 of 2019, and Dec. 31 of 2018, or visit: indianabankers.org/bank-thrift-stock-update INDIANA BANK & THRIFT STOCK UPDATE Stock Analysis Review as of May 31, 2019 The Size, Pricing and Profitability Reports for Indiana Banks and Thrifts as of May 31, March 31 and Jan. 31 of 2019, and Dec. 31 of 2018, are available by clicking on the 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 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 market indices at May 31 increased an average of 9.63%, the year-to-date bank and thrift indices increased an average of only 7.56%. The bank and thrift indices continue to significantly underperform the broad market indices over the last one-year and two-year time horizons as well. More specifically, while the average for the bank and thrift indices increased less than 2% over the twoyear time horizon, the broad market indices average increased more than 16%. Over the one-year time horizon, the average for the bank and thrift indices decreased almost 12%, while the average for the broad indices increased 1%. These relationships are consistent with our last report as of March 31. The median for Indiana’s NASDAQ-traded bank stock prices has increased 1.93% year-to-date, and Indiana’s OTC bank stocks increased just 0.52%, far below the median for selected banks headquartered outside Indiana (6.02%). 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. As of May 31, the median price multiples for Indiana’s NASDAQ-traded bank stocks were 162% of tangible book value and 12.3 times earnings, which were significantly below the medians for the seven similarly sized out-of-state banks tracked with Indiana operations (i.e. 201% of tangible book value and 13.6 times earnings), but better than the seven large out-of-state banks tracked with Indiana operations (i.e. 144% of tangible book value and 9.8 times earnings). In contrast, Indiana’s OTC bank stocks were trading at 115% of tangible book value and 11.5 times earnings. Indiana’s NASDAQ-traded bank stocks outperformed Indiana’s OTC-traded bank stocks in terms of ROAA (130 basis points vs. 115 basis points), ROAE (11.24% vs. 10.21%), efficiency ratio (58.4% vs. 65.5%), and nonperforming assets as a percentage of total assets (0.44% vs. 0.82%), while maintaining very similar net interest margins and loan-to-deposit ratios. As of this writing, there have been no mergers and acquisitions announced since our last report two months ago involving Indiana banks and thrifts. However, South Bend-based Teachers Credit Union ($3.2 billion in assets) has announced the acquisition of New Bancorp of New Buffalo, MI ($120 million in assets) for $21.3 million in cash, which equates to 128.4% of tangible book value and 48.2 times earnings. Three announced bank transactions are pending: German American Bancorp’s acquisition of Citizens First Corp of Bowling Green, KY; First Merchants’ acquisition of MBT Financial of Monroe, MI; and First Financial Corporation’s acquisition of Hopfed Bancorp of Hopkinsville, KY. HB
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