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 be useful as Alabama banks work through the economic impact of the COVID-19 pandemic. A… Read More >
News & Insights
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 every conversation with business owners and investors over the past month is “uncertainty”. In the… 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 expect a rate increase during 2020 with at least a 96.5% probability of rates remaining… 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 Bonds) increased significantly during the month, particularly in relation to a decline in treasury rates…. Read More >
Municipal Market Update – February 2020
Uncertainty surrounding the COVID-19 virus (Coronavirus) mounted the end of February, causing investors to flee from equities into safer treasury securities and driving down rates. On March 3, 2020 the Fed cut the overnight target rate by 0.50%. Following this announcement, the futures market is still predicting three more cuts by this time next year…. Read More >
Birmingham Area Economic Report, Q3 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 with a more in-depth look at the statistics. The charts below show a snapshot of… Read More >
Municipal Market Update – January 2020
This month, the Federal Open Market Committee (FOMC) held the target rate steady while long term US treasury rates declined, resulting in an inverted curve. Additionally, there are increasing probabilities in the futures market for multiple decreases in the target fed fund rate before the end of the year. Credit spreads on investment grade bonds… Read More >
Municipal Market Update – December 2019
This month, the Federal Open Market Committee (FOMC) voted unanimously to hold rates steady and the US treasury curve steepened moderately. The current target fed funds rate is 1.5-1.75% and the probability of a rate cut in 2020 has decreased as predicted by the futures market. The swap curve steepened as well, experiencing a ~0.20%… Read More >
Municipal Market Update – November 2019
The Fed did not meeting during the month, and fed chairman Jerome Powell has signaled that they plan to maintain the target rate of 1.5-1.75% when they meet in December. Overall, there has been a small upward parallel shift in the US Treasury Curve and the US Swap Curve. The spread on A to AAA… Read More >
The Importance of an Investment Policy Statement
I. Overview A written investment policy statement (IPS) provides guidelines and directions for the conscientious fiduciary. The Employee Retirement Income Security Act (ERISA) does not include a specific requirement that plans have a written IPS. The concept of a documented IPS comes from the fiduciary duty of prudence established under both ERISA and the common… Read More >
Making the Most of Year-End Giving
As the year comes to a close, you may be thinking of making financial gifts in addition to trying to buy a relevant gift for the picky tween in your life. Here are a few guidelines for both charitable gifts and gifts to friends and family. I. Charitable Gifts With the passage of the Tax… Read More >
First Southern State-Vantage Merger Complete
On October 31, 2019 First Bancshares of Stevenson, Inc. of Stevenson, AL (“FBS”) and Vantage Bancshares, Inc. of Albertville, AL announced the closing of their merger which combines two well-respected banking franchises and creates a $525 million institution. The company operates 10 locations as First Southern State Bank (subsidiary of FBS) in four northeast Alabama… Read More >
Municipal Market Update – October 2019
During October, the Fed set the target Fed Funds rate to 1.5% to 1.75%, marking the third quarter-point rate cut this year. Despite pressure, the Fed has signaled that they would not be decreasing the target rate further during 2019, although futures markets indicate there is a 70% chance of a cut in the next… Read More >
River Bank-Trinity Bank Merger Complete
On October 31, 2019 River Financial Corporation of Prattville, AL and Trinity Bancorp, Inc. of Dothan, AL announced the closing of their merger which combines two well-respected banking franchises and creates a $1.30 billion institution operating in three of Alabama’s four largest markets. The deal consideration was a mix of cash and River common stock…. Read More >
Birmingham Area Economic Report, Q2 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 with a more in-depth look at the statistics. The charts below show a snapshot of… Read More >
What’s It Worth, Summer 2019
U.S. private equity deal activity remains robust and continued fundraising and private equity dry powder (funds raised but not yet invested) will drive competition and push deal prices upwards. Private equity firms continue to search aggressively for smaller deals in the lower middle market, which is often less competitive and lacks the strategic acquirer interest…. Read More >
Municipal Market Update – September 2019
The yield curve remains inverted to 10 years, as longer-term rates out to 30 years are hovering around all-time lows. The FOMC approved another quarter point rate cut this month over a split vote and will meet again in October. While the futures markets are predicting a high probability of further rate cuts this year,… Read More >
Municipal Market Update – August 2019
During August, the long end of the yield curve continued to decline and become more inverted, with the two-year US Treasury yielding more than the ten year. This is a negative signal on economic growth, likely due to the ongoing US-China trade tensions. Historically, the yield curve has inverted before every recession, but there hasn’t… Read More >
