18 JULY / AUGUST 2020 Stock Analysis Review as of May 31, 2020 INDIANA BANK & THRIFT STOCK UPDATE The Size, Pricing and Profitability Reports for Indiana Banks and Thrifts as of May 31, April 30, and March 31, 2020, are available by clicking on the icon on this page in HB Digital or by visiting the designated website location. These reports present the stock price changes for the 30 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. Just as it appeared that America was successfully “flattening the curve” of new cases of infection and deaths due to the coronavirus pandemic, allowing for the restarting of the economy, commerce was confronted with another major headwind. Racial tensions flared due to the egregious death of a black man in police custody in Minneapolis, igniting demonstrations and rioting across the country, including Indianapolis, and in countries around the world. The hope for a quick return to the vibrant economy of early 2020 seems less likely now despite massive government stimulus. Investors, however, remain hopeful as demonstrated by a significant recovery in the major broad market indices in recent weeks. For instance, the S&P 500 Index was as high as 3,386 on Feb. 19, and was as low as 2,237 on March 23, before rebounding to 3,044 by May 29. Market volatility is expected for the foreseeable future due to significant economic and political uncertainty. Financial stocks continue to be out of favor compared to the broad market. For example, while the S&P 500 Index is down only 5.77% YTD as of May 31, the S&P 500 Bank Index is down 35.50% YTD. The same relationship exists over the one- and two-year time horizons. Anticipated continued net interest margin pressure brought on by low interest rates and asset quality concerns brought on by borrowers’ business interruptions are among the biggest concerns. Indiana banks generally fared better than the S&P 500 Bank Index. The median for Indiana’s NASDAQtraded bank stock prices has decreased 25.7% YTD, and Indiana’s OTC bank stocks decreased 17.8%. By comparison, the medians for selected banks with assets greater and less than $100 billion headquartered outside Indiana decreased 46.6% and 37.5% YTD, respectively. Several announced mergers and acquisitions were completed in the last couple of months. MutualFirst was acquired by Northwest Bancshares Inc. of Warren, PA, on April 24. FCN Banc Corp. of Brookville completed its acquisition of DSA Financial of Lawrenceburg in March. West End Indiana Bancshares of Richmond was acquired by Three Rivers Federal Credit Union of Fort Wayne on June 1. Teachers Credit Union of South Bend completed its acquisition of New Bancorp Inc. of New Buffalo, MI, on June 8. New acquisition announcements include: Piper Holdings (Fountain Trust Company) of Covington, IN, acquiring SBB Bancshares (State Bank of Burnettsville); and Crane Credit Union acquiring Community State Bank of Southwestern Indiana in Poseyville. HB 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 May 31, April 30 and March 31, 2020, or visit: indiana.bank/bankthrift-stock-update
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