Our Municipal Market Update is data-driven, one page sheet that is intended to give you an overview of key interest rates – floating as well as the credit spreads of key local and state entities with data as of January 31, 2021…. Read More >
Economies of Scale in Community Banks: An FDIC Study
Overview In December 2020, the FDIC produced a staff study entitled Economies of Scale in Community Banks1 which concluded community banks generate 90% of potential efficiency gains when a bank’s loan portfolio reaches $300 million and continue to accrue cost… Read More >
Municipal Market Update – September 2020
The municipal market remained relatively stable in September, as 30-day volatility of 10-year AAA GOs increased modestly from 0.82 to 0.87 over the month. Municipal supply in September remained high with monthly issuance of $50.3 billion, a 34.3% increase from… Read More >
Birmingham Area Economic Report, Q1 2020
This report explores a few key statistics that paint a picture of the Birmingham area economy. Our Birmingham Area Economic Report places the Birmingham area economy in a state, regional and national context. Click here to download the full report… Read More >
What’s It Worth, Summer 2020
During Q2 2020 (April-June), the public and private capital markets experienced the full effects of COVID-19 throughout the 90-day period. Deal volume halted as the number of completed deals declined by over 50% from recent levels; however, based on the… Read More >
Understanding Your Local Economy in the COVID Era
The best way to understand what is happening in your market is to do what Alabama Community Bankers excel at every day…understanding your clients and their financial needs. That said, having reliable, timely economic data applicable to your community is… Read More >
Birmingham Area Economic Report, Q4 2019
This report explores a few key statistics that paint a picture of the Birmingham area economy. Our Birmingham Area Economic Report places the Birmingham area economy in a state, regional and national context. Click here to download the full report… Read More >
Municipal Market Update – August 2020
The municipal market remained relatively stable in August, as weekly 30-day volatility of 10-year AAA GOs increased modestly from 0.27 to 0.42 over the month. Municipal supply in August remained high with monthly issuance of $41.4 billion, a 5% increase… Read More >
Municipal Market Update – July 2020
July marked the fourth full-month of the COVID-19 global pandemic, which continues to disrupt the municipal market. The one-year tax-exempt AAA rates decreased back to its all-time low in May 2020 and interest rates are not expected to increase in… Read More >
The Bank Shot – July 2020
In This Issue In “YTD 2020 Bank Valuations” we review YTD Regional and Community Bank deal valuations. In “YTD 2020 Bank M&A Scorecard” we review YTD Community Bank M&A transactions. In “M&A Strategies During the COVID-19 Pandemic” we discuss our… Read More >
Municipal Market Update – June 2020
The municipal market calmed down in June after months of volatility. The one-year tax-exempt AAA rate increased slightly to 0.25% from its all-time low in May 2020. Municipal supply picked up in June with issuance of $45.8 billion, a 25%… Read More >
Merger of BankFirst Capital Corporation and Traders & Farmers Bancshares Completed
On July 1, 2020 BankFirst Capital Corporation of Macon, MS and Traders & Farmers Bancshares, Inc. of Haleyville, AL announced the closing of their merger which combines two well-respected banking franchises and creates a $1.8 billion institution operating across Alabama… Read More >
What’s It Worth, Spring 2020
During the first quarter of 2020, buyers and sellers experienced at least two strong months of deal volume before COVID-19 dramatically slowed down M&A activity in March. Investors’ views of certain industries and sectors have changed significantly since January, and… Read More >
Municipal Market Update – May 2020
The one-year tax-exempt AAA rates hit an all-time low in May, declining from a peak of 2.51% in March to as low as 0.11% in May. The 30-year tax-exempt AAA rates declined approximately 50 basis points in May; however, credit… Read More >
M&A Strategies During the COVID-19 Pandemic
Overview Porter White & Company (“PW&Co”) reviewed almost 4,000 community bank M&A transactions since 2001 to ascertain the impact, by county, of county economic standing (as measured by GDP) on deal activity and transaction pricing. We believe this analysis may… Read More >
COVID-19 Impact on Valuation – When was it known or knowable?
During the past few weeks, business owners have been thrust into a new normal and forced to evaluate the potential short-term and long-term implications of COVID-19 on their businesses, employees, and families. One word that I have heard in almost… Read More >
Municipal Market Update – April 2020
The municipal market remained especially volatile during April from significant uncertainty regarding COVID-19. Treasury rates have continued to stay almost 2% lower than this time last year throughout the yield curve. As of April 30th, the futures market does not… Read More >
Municipal Market Update – March 2020
On March 3, 2020 the Fed cut the overnight target rate by 0.50%. Uncertainty surrounding COVID-19 continues to create strong demand for safer treasury securities, driving down treasury rates throughout March; however, municipal bond yields (measured by AAA General Obligation… Read More >
