The Farmers Bank, Frankfort, opened its newest location on Dec. 15, 2023, in Westfield, led by former Westfield Chamber CEO Steve Latour. He serves as financial center director, joined by Brittany Hall as assistant director. The new financial center at 360 N. Tricia Ln., just south of Meijer off Spring Mill Road, features a state-of-the-art Smartflower, harnessing solar power to contribute to the facility’s energy needs while also offering a hands-on educational experience for local schools. through the tender offer than they would achieve by simply selling the bond in the open market. ▶ What is the likelihood of the bond being called in a lower rate environment? Do you view a lower rate environment as likely? » Bondholders may want to participate in the market at today’s rates rather than risk rates declining and the bond being called, and then reinvesting at lower market rates. Issuers who entertain tender offers tend to be efficient and would likely call bonds once eligible if it made financial sense. ▶ Would you prefer to keep this bond if it became defeased? What is the probability of the bond being defeased? » Some issuers intend to advance refund the balance of bonds not purchased back using a taxable bond issue if a large enough portion of bondholders accept the tender offer. This means that bondholders who don’t accept the tender offer may end up with a defeased bond, which has essentially no credit risk and typically trades with tighter spreads. Tender offers can represent a good opportunity for certain bondholders, but bondholders who are happy with their investment and wish to keep it may decline the tender offer. Bondholders should consider the offer and determine the best course of action based on their rate outlook, investment strategy and liquidity position. The Farmers Bank, Frankfort, opened its newest branch at 360 N. Tricia Ln., Westfield, on Friday, Dec. 15, 2023. Steve Latour, left, serves as financial center director for the new Westfield branch of The Farmers Bank, Frankfort, at 360 N. Tricia Ln. Brittany Hall, right, serves as financial center assistant director. Dana Sparkman Senior Vice President/Municipal Analyst The Baker Group Dana@GoBaker.com BANKING CENTER NEWS Dana Sparkman, CFA, is senior vice president, municipal analyst in The Baker Group’s Financial Strategies Group. She manages a municipal credit database that covers more than 150,000 municipal bonds, providing clients with specific credit metrics essential in assessing municipal credit. The Baker Group is a Preferred Service Provider of the Indiana Bankers Association and an IBA Diamond Associate Member. JANUARY/FEBRUARY2024 25
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