Banks Jump at Chance to Dump Low-Yielding Bonds, FDIC Merger Policy Unlikely to Stop CU-Bank M&A

Institutions such as Virginia National Bank, Ames National Corp., and First Community Corp. took advantage of a decline in interest rates during the third quarter to unload low-yielding bonds, S&P Global Market Intelligence wrote. Many banks say they're on the lookout for more opportunities to reposition their securities portfolios, though rates have rebounded sharply this quarter. Meanwhile, concerns are growing about the potential future impact of tariffs, deficit spending, and immigration policies on inflation, and by extension, interest rates. 

Another S&P article discusses why the FDIC's new merger guidance probably won't change the trend of CUs acquiring banks.  

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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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