Pub. 9 2020 Issue 4

11 W i n t e r | 2020 F E A T U R E Helping Community Banks See What’s Possible Finding opportunities for community banks to grow becomes more challenging every month, but somehow it’s what we do, and what we do well. Using the power of partnerships we help community banks compete. • If you have a problem or idea, call us. • We can help community banks reduce and manage risk. • We work with our clients to address friction points, working for improved performance. If you are interested in new solutions to your problems, give us a call. L-R: Leesa McShane, Rose Washofsky, Gary Shook, Jo Ellen McKinley OUR TEAM IS READY TO HELP cbbonline.com | 800-822-1039 CBB_WVaCommunityBanker-Ad_7-5x4-625.indd 1 10/7/20 1:19 PM incremental yield is a precious com- modity today. So, ask your broker to show you a revenue bond secured by water or sewer fees, school building leases or utilities. You may like what you see. “It’s time to extend my portfolio.” To most community bankers, short means good. This is a vestige of their experience with a collection of bonds worth 93 cents on the dollar thanks to aggressive tightening by the Fed (circa 2000), or furrowed brows from regu - lators concerning extension risk and exposure to rising rates. Not to day: rate exposure has flipp ed. Most banks need to actively manage their maturities back to their intended objectives. This can be done several ways, and most directly by buy- ing “out on the curve.” Certain high- quality products with sufficient length can produce yields approaching 2%. Constant attention to the maintenance of the community bank’s duration is yet more dialogue that portfolio managers will be having with their dry cleaners. Or, make that investment brokers. Jim Reber ( jreber@icbasecurities.com ) is president and CEO of ICBA Securities, ICBA’s institutional, fixed-income broker-dealer for community banks. Portfolio managers have traditionally run, not walked, from the prospect of buying mortgage-backed securities (MBSs) that have a 30-year life.