Hoosier Banker 41 Michael A. Renninger Principal Renninger & Associates LLC mrenninger@ renningerllc.com Renninger & Associates LLC is a Diamond Associate Member of the Indiana Bankers Association. Securities offered through Ausdal Financial Partners Inc. Member FINRA/SIPC. 5187 Utica Ridge Road, Davenport IA 52807 563-326-2064. Renninger & Associates and Ausdal Financial Partners Inc. are separately owned and operated. Indiana Statistics Click on the hand icon in HB Digital to access statistics through Jan. 31, 2020, Dec. 31 and Nov. 30, 2019, or visit: indiana.bank/ bank-thrift-stock-update Stock Analysis Review as of Jan. 31, 2020 INDIANA BANK & THRIFT STOCK UPDATE The Size, Pricing and Profitability Reports for Indiana Banks and Thrifts as of Jan. 31, 2020, Dec. 31 and Nov. 30, 2019, 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 32 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. The one-year change in bank and thrift indices increased an average of 9.6% as of Jan. 31, which trails the average 19.1% increase in the one-year change in broad market indices. This continues the trend of bank and thrift indices significantly underperforming the broad market indices. Broad market indices reflect renewed optimism (or perhaps less pessimism) regarding the many headwinds that face the market. In the last 60 days since our last report, Brexit was completed (though the impact on world markets is still unknown), trade wars continue to simmer but the heat seems to have lessened along with the prospects for a near term recession, the potential for new armed conflict in numerous parts of the world remains, domestic political uncertainty is now a certainty for the remainder of this presidential election year even with impeachment in the rearview mirror, and now the coronavirus could potentially become a pandemic. That said, financial institutions market indices reflect less optimism as banks are dealing with the prospect of shrinking net interest margins and increased Fin Tech competition. The median for Indiana’s NASDAQ-traded bank stock prices has increased 9.7% over the last year, and Indiana’s OTC bank stocks increased 4.8%. By comparison, the medians for selected banks with assets greater and less than $100 billion headquartered outside Indiana increased an impressive 33.6% and comparable 9.7% year-to-date, respectively. As of Jan. 31, the median price multiples for Indiana’s NASDAQ-traded bank stocks were 162% of tangible book value and 12.7 times earnings, which is below the medians for the eight similarly sized outof-state banks tracked with Indiana operations (i.e. 181% of tangible book value and 13.6 times earnings), but more in line with the six large out-of-state banks tracked with Indiana operations (i.e. 173% of tangible book value and 12.1 times earnings). In contrast, Indiana’s OTC bank stocks were trading at just 110% of tangible book value and 11.1 times earnings. Comparing the medians for Indiana’s NASDAQtraded banks to our OTC-traded banks, the median asset size is $4.65 billion to $464 million, ROAA is 1.42 to 1.16, the net interest margin is 3.64 to 3.61, the efficiency ratio is 56.8% to 66.9%, the Texas Ratio is 3.60% to 5.36% and loans to deposits is 90.3% to 91.0%. Once again, bank asset size and profitability are being reflected in the pricing multiples presented above. As of this writing, no mergers or acquisitions were announced or completed over the last 60 days. HB
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