Thank you to Spencer D. for this one.)
James and Cindy lived on a cove at Gull
Lake, Alberta. It was early winter and the lower portion of the cove had
frozen over. James asked Cindy if she would walk across the frozen part of the
cove to the general store and get him some smokes and beer.
She asked him for some money, but he told
her, "Nah, just put it on our tab. Old man Richman won't mind."So Cindy, being the good wife and James' true love, walked across the ice, got the smokes and beer at the store and then walked back home across the cove.
When she got home with the items she said, "James, you always tell me not to run up the tab at Richman's store. Why didn't you just give me some money?"
James replied, "Well, Cindy, I didn't want to send you out there with cash when I wasn't sure how thick the ice was!"
In the builder biz, home building, first-quarter deal dollar volume is already approaching the cumulative total of all transactions in 2016!
A Bank Director Magazine survey of executives and
directors finds the top reasons banks say they would sell their bank are:
regulatory costs (54%), shareholder actively seeking liquidity (48%), limited
growth opportunities (39%), can't find new talent to replace exiting CEO and/or
executives (15%), can't keep pace with new customer expectations (13%) and
trouble acquiring new talent on the board (4%).
Certainly, depository bank mergers and acquisitions
continue. Just in the last week or two several announcements were made.
Sandy Spring Bank ($5.1B, MD) will acquire WashingtonFirst Bank ($2.0B, VA) for
about $488.9mm in stock (100%). Seacoast National Bank ($4.8B, FL) will acquire
Palm Beach Community Bank ($346mm, FL) for about $71.2mm in cash (22%) and
stock (78%) or about 1.71x tangible book. The Farmers National Bank of Emlenton
($704mm, PA) will acquire Northern Hancock Bank & Trust Co. ($27mm, WV) for
$1.9mm in cash. First Bank ($4.4B, NC) will acquire Asheville Savings Bank
($795mm, NC) for about $175mm in cash (10%) and stock (90%). In Indiana
MainSource Bank ($4.1B) will acquire investment management firm Capstone
Investment Management. Bank First National ($1.3B, WI) will acquire First
National Bank ($479mm, WI) for about $76.3mm in cash (70%) and stock (30%) or
about 1.06x tangible book.At the other end of the scale, in only the fifth incidence this year of a bank being closed, regulators closed Guaranty Bank ($1.0B, WI) and sold it under a P&A agreement to First-Citizens Bank & Trust Co ($33.8B, NC).
The Financial Times reports Wells Fargo plans to cut costs by $3 billion in addition to the $2 billion it has already announced. Branch closures and cuts in travel, consulting, marketing, and finance are all in the mix.
And certainly credit union market share in residential lending continues to grow.
Classes, events, & webinars
National MI has 2 upcoming June
2017 webinar sessions, brought to you by its MI University. June 1st: K1, Ordinary Income, Distributions, which
is It?June 15th: Facebook to the max.
On the 24th of May, join a complimentary webinar with Patrick Stone, Chairman and CEO of Williston Financial Group, to discuss: Challenges and Changes Facing Title Agents. "Regulations, compliance, cyber security, Millennial home buyers... it's not hard to find a new hurdle that our industry must clear. String Real Estate Info Services is hosting a complimentary webinar on 5/24 at 2 pm EST. During this hour-long webinar, Mr. Stone, a 45-yr veteran of the title industry, will cover three key areas. Strategic - What changes should a title agent make at the strategic level to address pending changes in market dynamics? Regulatory - Over the past decade, Regulation of our industry has taken center stage. What's in store for the industry going forward and how can a title agent prepare? Economic - How can a title agent prepare for the changes our industry faces in a manner that will maximize opportunities and profitability?
On May 23rd, learn about new HUD 2530 rules
with MBA's webinar.
The NAWRB Nexus Conference Early Bird Special Ends
May 31. Register now for its 3-day conference in Costa Mesa.Wells Fargo Funding, in cooperation with Freddie Mac, is hosting in-market, first-time homebuyer/affordable product events in Costa Mesa, California (June 6) and Houston, Texas (June 8). The events run from 8:00-11:30 a.m. in their time zones and are focused on helping lenders gain market share in the affordable/first-time homebuyer space, including details about homebuyer demographics, Freddie Mac's Home Possible® and in-depth insight into those specific markets. LOs, sales/production/affordable lending managers, underwriters, and marketing teams should consider attending. Approved and prospective Wells Fargo Funding and Freddie Mac clients are welcome. If interested, contact a member of your regional sales team or send an email to CorrespondentDiverseSegments@wellsfargo.com.
Ellie Mae has announced its Encompass Summer Training Series to help Ellie Mae customers' advance proficiencies, improve compliance management, optimize Encompass workflow, improve key business processes and learn best practices. This training will be available in the following cities and dates: Dallas - June 19th and 20th, Irvine, California - June 22nd and 23rd, Washington, D.C. - July 17th and 18th, and Chicago - July 20th and 21st.
On July 21st, in Washington DC, join MBA for its Collateral Underwriting Workshop that will help improve your decision-making ability, loan file quality, and increase productivity throughout the processing and underwriting process for conventional and government loans. Save $50 by registering before June 9th.
Capital markets
Plenty of analysts and traders are talking about the
flattening of the yield curve. On the "short end" of the yield curve,
where short-term maturities are plotted, the Fed has increased rates and is
expected to do so again in June. But even if short term rates head higher, we
could still see long term rates not move as much, and have dropped this week,
leading to a flatter yield curve. The "flat yield curve" is a yield
curve in which there is little difference between short-term and long-term
rates for bonds of the same credit quality. This type of yield curve is often
seen during transitions between normal and inverted curves. For us novices, an
easy way to think of it is if the Fed raises rates and 30-year mortgage rates
don't budge.This week the difference between a 2-year note and a 10-year note dropped to .96%, the lowest since October. This drop in the difference, or flattening of the yield curve, indicates waning confidence in the U.S. economic outlook, and is the result of this week's problems at the presidential level. How can President Trump lead Congress in economic changes and an infrastructure build-out when he is mired down in Russian intrigue? And will the Federal Open Market Committee pay attention?
That aside, U.S. Treasuries lost some ground Thursday, which means rates slid higher, as the risk appetite changed - but not much. (The 10-year price agency MBS, and the 5-year note all worsened about .125.) If investors want more risk they can turn to buying stocks; if they are risk averse they'll tend toward bonds. It didn't help rates that the Philly Fed number (third-highest reading since 2011) and initial jobless claims (232k) beat expectations.
There is no news today, aside from a couple rogue Fed presidents speaking, so it could be a quiet day. We start it with the 10-year yielding 2.24% and agency MBS prices worse a smidge versus last night.
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