Community banks set for a robust 2026   I’m hopeful that those New Year’s Resolutions are intact and having their desired effects. In taking one more look back into 2025, it dawns on me the further we got into the year, the better the bankers’ comments were about their bank’s performance. The industry seems to …

Off and running Read More »

The 2026 Asset Indexed Shift: A Little Breathing Room for the Rest of Us   Trying to keep a community bank compliant these days is like trying to hit a moving target while wearing a blindfold. For too long, we’ve watched our banks grow through hard-earned local success, only to be “rewarded” by hitting outdated …

The New CRA Threshold Numbers Read More »

Common Sense is Making a Comeback: A December to Remember at the FDIC By Byron Earnheart I’ve been around this industry long enough to know that when a regulator says they are here to “help,” most community bankers instinctively reach for their Tylenol. For the last few years, it’s felt like we’ve been trying to …

Common Sense is Making a Comeback: A December to Remember at the FDIC Read More »

Since we started seeing Halloween decorations in August, I felt it was high time we started thinking about the Holiday season. More specifically, as it relates to community banking. And still more specifically, about a checklist for the balance sheet. There are some seasonal items that bear attention prior to, and immediately after, year end. …

Making a list, checking it twice Read More »

I’ve been in banking for a while now, and if there’s one thing I’ve learned, it’s that we’re a cautious bunch. We’re trained to be. As risk managers, we’re a weird mix of optimistic relationship-builders and skeptical credit analysts. We’re the people who drive past a new development and immediately start wondering about its occupancy …

I Dare You Read More »

How bond markets react to rate cuts   In just a few short weeks, the fixed-income market’s expectations for monetary policy have done a virtual about-face. This is not to say that investors are fickle. Some of this change in sentiment is data driven; some is Trump administration officials’ cajoling; and some is Federal Reserve …

On your marks Read More »

Fed’s forward guidance reflects uncertainty.   I hope the readers of this column will excuse the lack of decorum in the title, but in reading and listening to the words of the Federal Reserve Board’s members over the past month, I hear a lot of hedging. And far be it from me to second guess …

Whole lotta thinkin’ going on Read More »

While it will possibly take months and even the rest of the year to see the full shakeout, April 2025 was a laboratory for market efficiency. Some might contend there was an element of ruthlessness in the activity. Starting even before the Trump administration’s trade policy tariffs went into effect on April 2, the “Bond …

Vigilante justice? Financial markets react quickly to policy changes. Read More »

    [Note: In this column, for the first time, your correspondent relied on ChatGPT, the generative artificial intelligence (AI) platform. For the record, I submitted this inquiry: “Write a 700-word essay on how the shape of the Treasury yield curve affects community banks.” The following was generated in, I guess, three seconds, and most …

Concepts and Facts: ChatGPT gets it mostly right on yield curve shapes Read More »