Banks are in a tough spot. I have a fixed-rate mortgage with ~3.25% interest rate with > 10 years to maturity. I am able to pay off the mortgage but instead invest in T-Bills or MMF yielding 5% plus. Further, the bank is offering 7-year notes at 6%. Essentially, I have found myself in the position of becoming the bank with a NIM of ~2% (without the administrative cost or burden to boot).
As Dave mentioned they are on Jim Royals Site. However, there are other avenues as well. Granted the environment hasn’t been great, but I expect you will see more activity with the possibility of rate cuts and perhaps more merger activity, buybacks, dividend increases, etc. However all this could be hampered by an economic recession or hopefully not a depression. There are always caveats as with any industry or securities. It also depends on how friendly the next administration is as well. The nice thing is that large trading institutions are not interested in this space, which also makes it interesting.
I highly recommend Jim Royal’s book The Zen of Thrift Conversions. It’s by far the best book written on community bank investing. All the others (a scant few) are mostly a waste of time.
Banks are in a tough spot. I have a fixed-rate mortgage with ~3.25% interest rate with > 10 years to maturity. I am able to pay off the mortgage but instead invest in T-Bills or MMF yielding 5% plus. Further, the bank is offering 7-year notes at 6%. Essentially, I have found myself in the position of becoming the bank with a NIM of ~2% (without the administrative cost or burden to boot).
I do have a question: what's the easiest way you have found to stay up to date with the listings? is kind of a mess
As Dave mentioned they are on Jim Royals Site. However, there are other avenues as well. Granted the environment hasn’t been great, but I expect you will see more activity with the possibility of rate cuts and perhaps more merger activity, buybacks, dividend increases, etc. However all this could be hampered by an economic recession or hopefully not a depression. There are always caveats as with any industry or securities. It also depends on how friendly the next administration is as well. The nice thing is that large trading institutions are not interested in this space, which also makes it interesting.
I highly recommend Jim Royal’s book The Zen of Thrift Conversions. It’s by far the best book written on community bank investing. All the others (a scant few) are mostly a waste of time.