Wednesday, August 11, 2021 |
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MANAGING DIRECTOR: Scott Carrithers PORTFOLIO SALES AND SERVICE: George Morris • Chris Thompson • Sean Doherty • Kevin Doyle • Mark Tranckino Jeff Goble • Nicole Burczyk • Natalie Regan • Aaron Stoffer • David Farris • Lonnie Harris Brian Schaff • Josh Kiefer • Robert Schuyler • Tom Toburen • Aaron Hemphill • Jared Willhoft |
| 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 |
| 08/04/21 | 0.05 | 0.05 | 0.05 | 0.07 | 0.17 | 0.34 | 0.67 | 0.96 | 1.19 | 1.74 | 1.83 |
| 08/05/21 | 0.05 | 0.05 | 0.06 | 0.08 | 0.21 | 0.38 | 0.72 | 1.01 | 1.23 | 1.77 | 1.86 |
| 08/06/21 | 0.04 | 0.06 | 0.06 | 0.09 | 0.21 | 0.42 | 0.77 | 1.07 | 1.31 | 1.85 | 1.94 |
| 08/09/21 | 0.04 | 0.06 | 0.06 | 0.08 | 0.23 | 0.43 | 0.79 | 1.09 | 1.33 | 1.87 | 1.96 |
| 08/10/21 | 0.05 | 0.05 | 0.05 | 0.08 | 0.24 | 0.47 | 0.82 | 1.12 | 1.36 | 1.90 | 1.99 |
Lots of changes coming for your Loan and Investment Portfolios…
I know this is on most banker’s radar, but in the event you have been under a “media blackout” for the last several years, we just wanted to take a minute to remind you of the upcoming regulatory changes and ways that we may be able to help you prepare for them.
First, as many of you are undoubtedly aware, LIBOR (London Interbank Offered Rate) is scheduled to “go away” in 2022. There are many implications to this and we encourage you to look for more info in next Wednesday’s Leader Board Report from Country Club Bank. If you have ANY loans tied to LIBOR, those of us at AMG can help you better understand this exposure and get you ready for the changes to your loan docs that you will need to be making in the next few months if you have not already done so.
Second, FASB will begin the final phase of implementation (for non-public entities) of FAS ASU 2016-13 Financial Instruments – Credit Losses; Topic 326, better known to most of us as CECL.
Some of you may have listened to the FED webinar a few weeks back on a simplified solution and we have heard from some that they plan to use that tool. Many other banks have asked us about the CECL Calculator, developed by AMG, under the BancPath suite of products to more specifically and comprehensively calculate this Credit Loss Exposure.
For banks with assets greater than $1 Billion, the FED’s provided solution is not an option. And many of these institutions have chosen to use the BancPath Calculator. However, there are also many clients under $1 Billion that have also made the decision to use this Calculator as a solution as well. If you would like to see a demo of this calculator or receive a brochure on this product, just give us a call.
Additional information on our simple AMG solution to CECL can be found at the two links below. Please let us know how we can help, either in the investment portfolio specifically, or the overall balance sheet.
First, as many of you are undoubtedly aware, LIBOR (London Interbank Offered Rate) is scheduled to “go away” in 2022. There are many implications to this and we encourage you to look for more info in next Wednesday’s Leader Board Report from Country Club Bank. If you have ANY loans tied to LIBOR, those of us at AMG can help you better understand this exposure and get you ready for the changes to your loan docs that you will need to be making in the next few months if you have not already done so.
Second, FASB will begin the final phase of implementation (for non-public entities) of FAS ASU 2016-13 Financial Instruments – Credit Losses; Topic 326, better known to most of us as CECL.
Some of you may have listened to the FED webinar a few weeks back on a simplified solution and we have heard from some that they plan to use that tool. Many other banks have asked us about the CECL Calculator, developed by AMG, under the BancPath suite of products to more specifically and comprehensively calculate this Credit Loss Exposure.
For banks with assets greater than $1 Billion, the FED’s provided solution is not an option. And many of these institutions have chosen to use the BancPath Calculator. However, there are also many clients under $1 Billion that have also made the decision to use this Calculator as a solution as well. If you would like to see a demo of this calculator or receive a brochure on this product, just give us a call.
Additional information on our simple AMG solution to CECL can be found at the two links below. Please let us know how we can help, either in the investment portfolio specifically, or the overall balance sheet.
Webinar Recording: https://attendee.gotowebinar.com/recording/2610963398102906636
Webinar Slides: https://bankbeat.biz/wp-content/uploads/2021/04/THE-PANIC-BEGINS_AMG.pdf
Webinar Slides: https://bankbeat.biz/wp-content/uploads/2021/04/THE-PANIC-BEGINS_AMG.pdf
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.
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