| Friday, February 28, 2025 |
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MANAGING DIRECTOR: |
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US Treasury Market |
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| Date | 1 mo | 3 mo | 6 mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr | 20 yr | 30 yr |
| 02/21/25 | 4.31 | 4.31 | 4.33 | 4.16 | 4.20 | 4.21 | 4.27 | 4.36 | 4.43 | 4.71 | 4.68 |
| 02/24/25 | 4.31 | 4.30 | 4.33 | 4.15 | 4.18 | 4.18 | 4.24 | 4.32 | 4.40 | 4.69 | 4.66 |
| 02/25/25 | 4.29 | 4.29 | 4.31 | 4.12 | 4.10 | 4.09 | 4.13 | 4.21 | 4.30 | 4.60 | 4.56 |
| 02/26/25 | 4.29 | 4.30 | 4.31 | 4.12 | 4.07 | 4.05 | 4.08 | 4.17 | 4.26 | 4.56 | 4.51 |
| 02/27/25 | 4.31 | 4.30 | 4.30 | 4.12 | 4.05 | 4.03 | 4.08 | 4.17 | 4.26 | 4.57 | 4.53 |
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 2/27/2025.
Community Reinvestment Act
The Community Reinvestment Act (“CRA”) of 1977, and subsequent regulations, have strongly encouraged banks of all sizes to extend credit to low-income and minority communities. CRA requirements have continued to become an increased focus for banks as new regulations are applying even more scrutiny to CRA allocations.
Country Club Bank has been active in structuring and sourcing CRA credits for our customers for well over 30 years. Below are the common structures we typically see banks utilize to augment a CRA deficiency if they do not have enough CRA loans or investments. We always recommend consulting with your regulator to make sure they agree these will qualify for CRA credit prior to investing.
Type Of CRA Credit
1. Custom Single Family MBS Pools (all loans made to borrowers at or below 80% of Area Median Income)
Median Income. Sometimes accompanied by a LURA / HAP agreement as well).
3. Community Development Financial Institutions “CDFI” brokered CDs (typically low-income credit unions or
community banks with a community development designation)
4. School district municipal bonds with over 50% of students receiving free and reduced lunch
5. CRA funds (mutual fund with underlying securities designated to specific shareholders)
6. Ginnie Mae (GNMA) Project Loans
Our favorite structure remains agency CMBS as these pools limit convexity (do not tend to prepay when rates fall or extend when rates rise) though sourcing in your specific census tract area can be difficult. The most common structure we utilize is custom single family MBS pools. This is typically the easiest to source and can be completely customized by customers.
We often recommend customers avoid Ginnie Mae Project Loans as liquidity and convexity risk are extremely high with these structures. At times CRA funds could make sense, but you should scrutinize the cost of these funds. They typically charge 50-100bps annually which is extremely expensive when you could source and own them directly with minimal holding costs. Run the math and you will usually find they charge high fees and buy the same product you could buy direct.
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