Hoosier Banker 31 StockAnalysis Review as of March 31, 2022 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 March 31, Feb. 28 and Jan. 31, 2022, or visit: indiana.bank/bank-thriftstock-update. The Size, Pricing and Profitability Reports for Indiana Banks and Thrifts as of March 31, Feb. 28 and Jan. 31, 2022, 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 29 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 four bank and thrift indices are also tracked. The broad indices declined an average of 6.1% YTD, and the bank indices declined an average of 5.8% YTD as of March 31, 2022. In comparison, Indiana’s NASDAQ-traded banks are also down a median of 6.8% YTD, while Indiana’s OTC/Pink Sheetlisted banks are up 0.9% YTD. Taking a longer view since the onset of the COVID-19 pandemic two years ago, the broad and bank indices are up an average of 73.7% and 81.4%, respectively, since March 31, 2020. In comparison, Indiana’s NASDAQ-traded banks are up a median of 57.0%, and Indiana’s OTC/Pink Sheet-listed banks are up 40.8% over the two-year period. The six selected banks headquartered outside Indiana with assets over $100 billion are trading at a median multiple of 191.7% of tangible book value and 10.2 times LTM earnings, while the eight selected banks headquartered outside Indiana with assets under $100 billion are trading at a median multiple of 151.2% of tangible book value and 11 times LTM earnings as of March 31, 2022. In comparison, Indiana’s NASDAQlisted banks are trading at a median multiple of 138.7% of tangible book value and 10.8 times earnings, and OTC/Pink Sheet-listed banks are trading at a median multiple of 105.5% of tangible book value and 8.8 times earnings as of March 31, 2022. Stock prices have experienced significant volatility due to rapid inflation. Contributing factors include: COVID-related government stimulus; supply chain disruptions; labor shortages driving up wages; and spiking fuel prices caused in part by supply concerns brought on by international military conflicts, domestic energy and foreign policies. To combat inflation, the Federal Reserve has begun to tighten the money supply and increase interest rates. Congratulations to Merchants Bancorp (Carmel) for being recognized by S&P Global Market Intelligence as the best-performing U.S. bank in 2021 (among public banks with assets greater than $10 billion). As for mergers and acquisitions, two Indiana banks are continuing the trend of Indiana banks acquiring out-of-state banks. On April 1, 2022, First Merchants Corporation (Muncie) completed its acquisition of Farmington Hills, MI-based Level One Bancorp Inc. The combined company has $18 billion in assets. On April 6, 2022, Fidelity Federal Bancorp (Evansville) announced it will acquire Community Banks of Shelby County, Illinois ($63.8 million in assets) for undisclosed terms. The combined company will have assets of $3.3 billion and has locations in Indiana, California, Florida, the U.S. Virgin Islands, Colorado and now Illinois. HB
RkJQdWJsaXNoZXIy MTg3NDExNQ==