Being most decidedly not a professional journalist, I’m all for using tricks and devices to develop themes in my columns. This month, I’m relying on the “rule of three,” a literary technique that suggests that topics with three identifiable components can produce clarity or improve the effectiveness of the piece. Personally, I’m a fan of “hook, line and sinker,” “of the people, by the people, for the people” and the ever-popular Larry, Curly and Moe. What really spurred this thought process is that community bank bond portfolios are now yielding a nice round 3% on a tax-equivalent basis. While that may not sound like much, it’s been many years since they’ve been at that level. Let’s dive PORTFOLIO MANAGEMENT THE RULE OF THREE BY JIM REBER, PRESIDENT AND CEO, ICBA SECURITIES BOND PORTFOLIO YIELDS ARE AT MULTIYEAR HIGHS into what makes up these bond collections to see how they have evolved this decade. VENI … The sample information for this column is from Stifel’s bond accounting population of more than 400 community banks, whose average portfolio size is about $208 million. To put into perspective what a grind it’s been to get back to even a 3% yield, consider that the last time it was anywhere near this close was way back in 2018. Even then, that was a chore, as overnight rates, which 16 Community Banker
RkJQdWJsaXNoZXIy MTg3NDExNQ==