OFFICIAL PUBLICATION OF THE COMMUNITY BANKERS ASSOCIATION OF KANSAS

Pub. 5 2024 Issue 4

Putting Your Institution’s Best Foot Forward for a Lower-Rate Environment

After transitioning from near-zero rates to one of the fastest rate-hiking cycles we’ve ever seen, financial institutions are now in the position of waiting for rates to fall. As we wait for the Fed’s next move, it’s important for management teams to understand how lower rates will impact their institutions’ income statements and take steps to better position themselves for the lower-rate environment likely to come.

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The Meek …

Inherit a Prominent Place in Bond Portfolios

here are a whole lot of anomalies in community banking in the waning stages of this restrictive Fed cycle. One of the overriding themes is the sheer duration of the process. We’re now fully one year past the last tightening, which has left the effective overnight rate at 5.375% since July 2023, and given rise to the “higher for longer” sound bite.

The Meek …

Inherit a Prominent Place in Bond Portfolios

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Flourish – Connected as Independent Community Banks

When you enter ICBA’s headquarters, you are greeted with a large U.S. map that contains a peg for each community bank and a singular cord linking them all together. It not only demonstrates our collective impact; it also represents the strength of our financial system, built on thousands of local economies around the country and fueled by community banks.

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