Wednesday, June 5, 2024
MANAGING DIRECTOR: Scott Carrithers   PORTFOLIO SALES AND SERVICE: Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino Natalie Regan • Aaron Stoffer • David Farris • Lonnie Harris • Brian Schaff • Jeff Macy Josh Kiefer • Tom Toburen •  Todd Czinege

US Treasury Market
Date	1 mo	3 mo	6 mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr	20 yr	30 yr
05/29/24	5.37	5.41	5.39	5.21	4.97	4.79	4.63	4.63	4.61	4.82	4.73
05/30/24	5.37	5.41	5.38	5.19	4.92	4.73	4.56	4.56	4.54	4.76	4.68
05/31/24	5.36	5.41	5.38	5.18	4.87	4.68	4.51	4.51	4.50	4.72	4.65
06/03/24	5.37	5.40	5.38	5.15	4.81	4.61	4.41	4.40	4.39	4.62	4.54
06/04/24	5.37	5.40	5.35	5.12	4.77	4.56	4.35	4.33	4.33	4.55	4.47

The data in the table above is static as of the time it was pulled, so rates may have changed. Treat all data in this table and PMR as indications only and availability is
always subject to change.   This information was pulled manually from sources we believe to be reliable. New source, as of 12/12/2022, Bloomberg, L.L.P.  As of:    close of  business 6/4/2024.
                                                                                                                                                                                       

Since 1977, banks have been required to meet the Community Reinvestment Act (CRA) requirements annually to ensure they are fulfilling their responsibility to meet the credit needs of the communities they serve.  This was applied to address concerns about discriminatory lending practices that were disregarding low and moderate income neighborhoods.

The CRA requires banks to demonstrate that they are actively providing access to financial services in all segments of the community, particularly those low income areas. This includes providing loans, investments, and services to individuals and businesses in these communities, with the goal of promoting economic development and revitalization.

To meet the CRA requirements, banks are evaluated based on their lending activities, investment practices, and community service efforts.  Internally, community service can be encouraged and loans given when they are available. 

In the fourth quarter of last year, the Fed, FDIC and OCC issued a revision to the requirements – click here for final rule and details – that will affect institutions differently based upon size but a lot of the same framework.

Beyond community services and lending activity, it has been common practice to look to your investment advisor to build a custom mortgage backed security.  Once you specify the geographical area, the low income loans will be sourced. Once all of the conforming loans are securitized, they will be backed by the full faith and credit of the issuing agency, just like any other Agency MBS pool.  Additionally, municipal bonds – mainly housing project bonds and school district issues – can be another resource.

If a school district local to your bank or its branches has 50% or more of its students on free or reduced lunch, this very likely will count toward your CRA portfolio.  Click here to reference this write up we published with the necessary links to check out qualifying districts in your region.

By fulfilling CRA obligations, banks can contribute to the overall economic health and development of the communities they serve while maintaining a positive relationship with regulatory authorities.

Let us know what you need and we can be on the lookout to fill your bucket and cross this off your to-do list.
 

This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.

•Not FDIC Insured •No Bank Guarantee •May Lose Value