Articles & Insights

Stay informed and up to date on the latest financial topics. Read articles written by our financial strategies team.

Municipal Credit Update: Characteristics to Cautiously Consider

Municipal bonds remain a key sector for bank portfolio managers. It’s not uncommon for banks with assets under a billion dollars to dedicate thirty percent or more of their portfolio to municipals. Clearly, pre-and post-purchase credit analysis of municipal holdings continues to be critical. Although municipal bonds generally experience very

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A “Total Bank” Framework for Investment Management

The Bank as a System Forty years ago, Dr. James V. Baker wrote about systems theory development in his original work on asset/liability management. He illuminated the idea that a bank is a system of complex relationships that cannot be analyzed in complete isolation. The output of one decision serves

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Where Do Net Interest Margins Go from Here?

In June 2004, the Fed increased the federal funds rate by 25 basis points, the first of many rate increases to follow. Over the next two years, the Fed increased rates from 1.00% to 5.25%, a quick and aggressive tightening cycle when compared to today’s cycle that has seen nine

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Asset/Liability Management and Balance Sheet Dynamics

The Banking Environment It is not news that community banks have struggled with sluggish net interest margin for several years. We know that funding cost hit bottom some time ago, while yields on earning assets continued to whittle lower. Older loans and bonds paid off or matured and were replaced

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