The American Bankers Association (ABA) recently added nine institutions to the ABA NASDAQ Community Bank Index (ABAQ), increasing the index to include a total of 328 community banks with $255 billion in market capitalization.
The ABAQ is the most broadly representative stock index for community banks and remains an essential tool for giving banks more visibility with analysts and investors.
The index includes all banks and savings associations or their holding companies listed on the NASDAQ, with the exception of any of the 50 largest bank and thrift charters based on asset size, banks classified as having an international specialization and banks classified as having a credit card specialization.
The index is reported daily as a total return index, which means the value of reinvested dividends is included in the calculation, and total return index is commonly used as a benchmark in proxy statements.
The nine additions include 1895 Bancorp of Wisconsin, Inc. in Greenfield, Wis.; Carter Bank & Trust in Martinsville, Va.; Cortland Bancorp in Cortland, Ohio; First National Corporation in Strasburg, Va.; MainStreet Bancshares, Inc. in Fairfax, Va.; MBT Financial Corp in Monroe, Mich.; Mercantil Bank Holding Corporation in Coral Gables, Fla.; PCSB Financial Corporation in Yorktown Heights, N.Y.; and Rhinebeck Bancorp, Inc. in Poughkeepsie, N.Y.
It was noted East West Bancorp, Inc. (EWBC) no longer qualifies under the criteria for inclusion in the ABAQ index, as it currently holds one of the 50 largest banking charters.
ABA serves as the voice of the nation’s $17.9 trillion banking industry. The association is composed of small, regional and large banks employing more than 2 million people, safeguarding nearly $14 trillion in deposits and extending more than $10 trillion in loans.
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