24 MARCH / APRIL 2021 Stock Analysis Review as of Jan. 31, 2021 INDIANA BANK & THRIFT STOCK UPDATE 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, 2021, and Dec. 31 and Nov. 30 of 2020, or visit: indiana. bank/bank-thrift-stock-update. The Size, Pricing and Profitability Reports for Indiana Banks and Thrifts as of Jan. 31, 2021, Dec. 31 and Nov. 30, 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. Now that the year 2020 has been written into the history books, it seems appropriate to step back and review the stock market’s reaction to a once-a-century pandemic. We are, of course, not out of the woods, though a number of successful vaccines are now being distributed, and there is guarded optimism that the economy can fully recover. That said, it is clear that consumer and work trends have been permanently altered in important ways. It was mid-February one year ago that the Broad Market Indices were setting new records, when the initial impact of the COVID-19 pandemic-inspired economic shutdowns caused a 34% decrease in less than five weeks (aka the “COVID drop”). It took less than three months for the tech-rich NASDAQ to fully recover, and the index has continued to climb impressively, if not unevenly, since then. As of Jan. 31, 2021, the NASDAQ is up 43% over one year and up 80% over two years. The broader S&P 500 and Russell 3000 indices recovered in six months and have continued to move up over the last five months. Those indices are up 15% and 18%, respectively, over the last year, and up 37% and 40%, respectively, over the last two years. The large, industrial-heavy Dow took nine months to fully recover, and it has traded in a fairly tight window in the ensuing three months. The Dow is up a relatively unimpressive 6% over the last year, and up 20% over two years. The bank indices have not fared as well. The NASDAQ Bank index hit its five-year high in June 2018 and trended downward 13% through mid-February 2020, only to decline another 38% in the five-week COVID drop. It took more than 10 months to largely recover to pre-pandemic levels, but the index remains far below its five-year high as of January 2021. The S&P 500 Bank index hit a five-year high in early January 2020, only to experience a 50% COVID drop. The index has yet to recover to its pre-pandemic levels and is 18% off its five-year high as of January 2021. The one-year median share price decline for Indiana banks is in line with the average bank indices decline of 7%. On Dec. 21, 2020, Farmers & Merchants Bancorp Inc. of Archbold, Ohio, announced that it will acquire Ossian Financial Services Inc. (Ossian State Bank) in an all-cash transaction valued at 168% of book value. HB
RkJQdWJsaXNoZXIy MTg3NDExNQ==