Login to Bank Services

Enter your email address and password below to gain access.

Audit
08/08/2024

The Reality of Long-Term Assets on Your Bank’s Value

Directors should understand how the declining value of their banks’ fixed-rate, long-term assets can pressure capital and future earnings, along with their potential options.

Close
About the authors
Written by
Kiah Lau Haslett Banking & Fintech Editor

Kiah Lau Haslett is the Banking & Fintech Editor for Bank Director. Kiah is responsible for editing web content and works with other members of the editorial team to produce articles featured online and published in the magazine. Her areas of focus include bank accounting policy, operations, strategy, and trends in mergers and acquisitions.

Kiah Lau Haslett
Banking & Fintech Editor
Directors at institutions with a concentration of long-duration, underwater assets will face difficult choices in the quarters ahead. Longer-term assets — securities and loans that will mature in three years or more — made up 36.1% of all bank assets in the first quarter of 2024, according to the Federal Deposit Insurance Corp.’s Quarterly Banking Profile. At community banks, that figure was 49.6%. Unrealized losses on available-for-sale and held-to-maturity securities portfolios increased to $517 billion in the first quarter, up $39 billion from the quarter prior, according to the FDIC. While much of the attention on unrealized losses has focused…

YOU HAVE ACCESSED A RESOURCE THAT IS ONLY AVAILABLE TO OUR BANK SERVICES MEMBERS AND SUBSCRIBERS.

From how-to articles, director training videos, key interviews with industry leaders and more, Bank Services provides bank executives and directors with the tools to help grow their financial institutions. To sign up for exclusive access to this online bank board resource, please contact Bank Services at 615-777-8461 or [email protected].

READ THE ARTICLE

Please enter your username and password below. If you have established a password please click ‘forgot your password’

WRITTEN BY

Kiah Lau Haslett

Banking & Fintech Editor

Kiah Lau Haslett is the Banking & Fintech Editor for Bank Director. Kiah is responsible for editing web content and works with other members of the editorial team to produce articles featured online and published in the magazine. Her areas of focus include bank accounting policy, operations, strategy, and trends in mergers and acquisitions.