TIB Ticker - Are You A Good Number 2?

May 21, 2013Daily Rates & Viewpoints From the Officers & Staff of TIB.

Are You A Good Number 2?

Earl Nightingale says, “Attitude” is the Magic Word! Whether applied to your life, home, work or the contacts you make on a daily basis, attitude is the single most important factor that will guarantee the results you are looking for. Our attitude towards life and work generally determines our attitude toward ourselves. Many of you continue to weigh the benefits or burden associated with the various Capital Requirements, new Bank Regulatory mandates, FDIC coverage etc... Having said that, it appears 2013 will not change much outside of spending an extensive amount of time monitoring these various programs in hopes that if exercised, one’s Capital position becomes stronger assisting Banks and the Financial Industry going forward.

While the above issues are extremely important, it is going to largely be our attitude towards these things that shape our opinions and responses. If we take the position that we can’t do something, generally we can’t and are whipped before we start. However, that doesn’t have to be the end of the story. If, we are not satisfied being the number two bank in our community, number two on the regulators mind, or second fiddle to things that really matter we need to take the advice of William James of Harvard University to heart who said “human beings can alter their lives by altering their attitudes of mind.”

If success for your bank and yourself is what you want, take the attitude that there is no good reason on earth why you can’t be as successful and competent as the banker across the street. Usually, the competition is not smarter nor does it have a more talented staff they may just have the right attitude. But, the right attitude is not a given it must be developed through practice. You have heard the old adage many times: “great attitude- great results, good attitude- good results, and poor attitude- poor results.”

Everything you want to do or get done in your bank must be done with and through people. Every dollar you earn or save will come from people. And what affects them most will be your attitude.

“To tell someone to “grow-up” means to stop growing”

-Tom Robbins-American Novelist

In closing, a robot can do a great job but only your TIB Correspondent Relationship Officer can do it with a great attitude. Please feel free to contact them for assistance.

Don Briscoe Don Briscoe
Sr. Vice President
dbriscoe@mybankersbank.com

Market Levels @ 7:00 AM CDT

TIB Fed Funds & MMDA Rates - Previous Day
Agent	0.20%	Prin	0.05%	MMDA	0.30%
Agent	0.20%	STAR Prin	0.10%	STAR MMDA	0.35%

Key Indices/Commodities
1 - Month LIBOR	0.19%	Dow Jones	15335.28
3 - Month LIBOR	0.27%	NASDAQ 100	3496.43
1-Yr LIBOR	0.68%	S&P 500	1663.00
1-Yr CMT	0.12%	Spot Gold	1376.60
Prime	3.25%	Spot Silver	22.42
3-yr LIBOR Swap/Offer	0.52%	Spot Crude Oil	96.12
5-yr LIBOR Swap/Offer	0.99%	CRB Index	288.78
3 Mo - Fed Fund Futures	0.11%	6 Mo - Fed Fund Futures	0.13%

US Treasury Yields		US Non-Callable Agency Yields
Yield	Maturity	Yield	Spread
0.00%	90 - Days
0.00%	180 - Days
0.18%	2 - Year	0.24%	6bp
0.35%	3 - Year	0.42%	7bp
0.80%	5 - Year	0.95%	15bp
1.92%	10 - Year	2.19%	27bp
3.13%	30 - Year
174 BPs		Yield Curve(2's-10's)

Sample 1x Callable Agency Issues
Description	Call Date	YTC	YTM
FHLMC 1.75 12/11/20	6/15	1.75%	1.75%

Select MBS Levels
Description	Coupon	Yield	Spread/Duration*
15-Yr FNMA	3.00%	1.34%	85 / 3.28
30-Yr GNMA	3.50%	1.98%	105 / 4.84
*Duration @ 12 month Historical CPR

Morning Commentary:	Blake Scharlach
There are no economic releases this morning, and the markets are pretty flat. The Dow’s streak of 19 consecutive Tuesdays with gains is on the line today. 90 minutes into the trading day, the Dow is flat and Treasuries are flat across the board. In light of the lack of news today, it’s a good time to point out that spreads from the 2 year Treasury to the 10 year Treasury are 187 bps. At the beginning of the year, that spread was 150. Since the beginning of the year, we’ve seen the first three years in the curve remain constant, but the five year part of the curve move up 11 bps, the 7 year 15 bps, and the 10 year up 22 bps. This additional steepness will allow for us to be more rewarded for our positions further out on the curve, and provides for some opportunities to more quickly accrue gains as our bonds roll down the curve. By the end of the week, we’ll see new and existing home sales data as well as capital goods and durable goods numbers. Those numbers will likely drive the markets for the remainder of the week.

Morning Commentary:

Blake Scharlach

There are no economic releases this morning, and the markets are pretty flat. The Dow’s streak of 19 consecutive Tuesdays with gains is on the line today. 90 minutes into the trading day, the Dow is flat and Treasuries are flat across the board. In light of the lack of news today, it’s a good time to point out that spreads from the 2 year Treasury to the 10 year Treasury are 187 bps. At the beginning of the year, that spread was 150. Since the beginning of the year, we’ve seen the first three years in the curve remain constant, but the five year part of the curve move up 11 bps, the 7 year 15 bps, and the 10 year up 22 bps. This additional steepness will allow for us to be more rewarded for our positions further out on the curve, and provides for some opportunities to more quickly accrue gains as our bonds roll down the curve. By the end of the week, we’ll see new and existing home sales data as well as capital goods and durable goods numbers. Those numbers will likely drive the markets for the remainder of the week.

Information contained herein is based on sources we believe to be reliable but its accuracy is not guaranteed. Customers should rely on their own outside counsel or accounting firm for specific circumstances. The securities, yields or levels discussed herein are for illustration purposes and are not guaranteed, not obligations of any bank, thrift or other entity and are not insured by the FDIC.

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