December 15, 2016
Monthly Board Agenda: Bonds Decline in Value – What Does Your Board Do About It?
In the last two months, community banks’ average investment portfolio have lost 2% in value. Bank directors that were not on the Board prior to 2007 may not have seen such a movement up in rates. So what is a director to do? Here are three questions to answer:
- Do we plan to sell any bonds in the portfolio at a loss?
- What will the regulators say and how do we answer them?
- Is there an opportunity presenting itself?
Vining Sparks has put together a paper that looks at each of these and helps the director in search of direction.