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Wednesday, April 30, 2025
 

MANAGING DIRECTOR:
Scott Carrithers
 
PORTFOLIO SALES AND SERVICE:
Chris Thompson • Sean Doherty • Mark Tranckino • Brian Schaff
Natalie Regan • Aaron Stoffer • David Farris • Jeff Macy 
Josh Kiefer • Todd Czinege • Trey Valentine • Cody Kreutziger

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
04/23/25 4.29 4.28 4.21 4.02 4.02 3.89 4.02 4.20 4.38 4.85 4.82
04/24/25 4.28 4.30 4.20 3.97 3.79 3.80 3.94 4.12 4.32 4.80 4.78
04/25/25 4.28 4.30 4.20 3.95 3.75 3.74 3.86 4.04 4.24 4.72 4.71
04/28/25 4.30 4.30 4.20 3.92 3.70 3.68 3.81 4.00 4.21 4.71 4.68
04/29/25 4.30 4.29 4.18 3.90 3.65 3.64 3.77 3.97 4.18 4.67 4.65

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 4/29/2025.

                                                                                                                                                                                        

Bank Performance Metrics 2025

It’s time to review how bank balance sheets have changed over the past 12 months:
  1. Banks continue to shrink investment portfolio assets, down 8.11% YoY. Average Yield on investments has increased slightly, in spite of market yields dropping by 31 basis points in the past 12 months.
  2. Growth has shifted to Loans as loan portfolios have increased almost 5.50%, yield on loans is up by 19 basis points, even as offering rate on loans has declined more than 50 bp’s in the past year.
  3. This has resulted in asset growth of just under 3.00%, and a yield on earning assets up 0.20% to 5.67%
  4. Loan portfolio mix has continued its march towards more variable rate loans, with fixed rate loans comprising just 58% of total loans as of March 2025.
  5. Deposit growth continues, as banks rebound from the 2023 liquidity shock brought on by the bank failures we are all too familiar with. Deposits are up 4.36%, as the COF drops 15bps to just 2.27%.
  6. These trends have naturally had a positive impact to both spread and margins as those numbers are 3.40% and 3.57% respectively, up 35 basis points YoY.
  7. All performance ratios are better than they were 12 months ago, with the exception being the Free Funds Ratio is down 0.27%.
  8. But everywhere else we look, good news. Liquidity is better, Capital ratios are better, ROA and ROE are better.
We know these trends won’t last forever and we continue to preach for consistency and discipline in your investment strategies. Stock away some of these decent current yields with positive convexity in the event the credit waters turn frothy in the coming months and years.
 
Please let us know how we can help and don’t hesitate to call or email us with your questions.
 



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