Liquidity Trends and Outlook: Navigating Q2 and Beyond

As we move through the second quarter of 2025, several familiar seasonal patterns are unfolding. First-quarter call reports are being finalized, personal tax payments have been submitted, and municipalities have disbursed funds—leading to the usual dip in liquidity. However, this year’s decline is less pronounced thanks to stronger liquidity levels at the start of the year.

Still, uncertainty looms. Ongoing tariff discussions and persistent inflation concerns are prompting many institutions to take a cautious stance, opting to hold more cash than usual. This conservative approach reflects broader market apprehension and a desire to remain flexible in the face of economic unpredictability.

At Bankers’ Bank, we continue to monitor these developments closely. While we still anticipate two—possibly three—rate cuts before year-end, shifting economic signals could alter that trajectory.

What remains certain is our commitment to supporting community banks. We’re maintaining competitive earnings credit rates, which can be applied toward monthly account analysis fees—helping you manage costs without incurring hard charges. And as always, we’re here with innovative products and services designed to help you navigate whatever comes next.