August 28, 2007Daily Rates & Viewpoints From the Officers & Staff of TIB.

Got Heartburn?

It seems a weekly occurrence when visiting with
bankers, each is confronted with some new regulation,
competitive pressure or technological issue that has
managed to finagle its way to the top of their “Must Do”
list. Many of the issues I hear bankers talk about were
discussed and developed last week during a planning
session for an upcoming weeklong bank operations
school. The school’s curriculum mirrors many of today’s
issues that give bankers heartburn.

Monday: Effective Communication, Improving
Management Skills, Fee Income and Expense Control,
Operations Compliance Update, Research, Resources
and Reorganization

Tuesday: Bank Financial Analysis, Bank Secrecy Act,
Bank Security and Fraud Update, Business Continuity

Wednesday: Garnishments/Levies, Internal Controls
and Internal Audit, Investments, Asset/Liability Basics,
Technology/Information Update

Thursday: Personnel Legal Issues, Employee Selection
and Review, Electronic Payment Systems Update, Bank
Operations Law, Train the Trainer and Relationship
Banking and Customer Service.

Friday: Exam

On-going training and remaining current with regulations,
technology and marketing are a must for bankers today.
Make sure the personnel at your bank who are
responsible for the above- mentioned topics are
prepared for the next year. With pressure from
examiners, narrowing margins and competition, we’ve
got to stay ahead of the curve and steer clear of the

Richard Gallman Richard Gallman
Correspondent Relations

Market Levels @ 8:22 AM CDT

TIB Fed Funds Rate - Previous Day
Agent 0.00% Principal 5.14% STAR Principal 5.19%
Key Indices/Commodities
1 - Month LIBOR 5.50% Dow Jones 13322.13
3 - Month LIBOR 5.51% NASDAQ 100 2561.25
1-Yr LIBOR 5.21% S&P 500 5.21
1-Yr CMT 4.55% Spot Gold 674.30
Prime 8.25% Spot Silver 11.80
3-yr LIBOR Swap/Offer 4.91% Spot Crude Oil 71.59
5-yr LIBOR Swap/Offer 5.01% CRB Index 305.23
3 Mo - Fed Fund Futures 4.75% 6 Mo - Fed Fund Futures 4.605%
US Treasury Yields US Non-Callable Agency Yields
Yield Maturity Yield Spread
4.43% 90 - Days    
4.53% 180 - Days    
4.17% 2 - Year 4.66% 49bp
4.18% 3 - Year 4.66% 48bp
4.30% 5 - Year 4.77% 47bp
4.55% 10 - Year 5.11% 56bp
4.84% 30 - Year    
38 BPs Yield Curve(2's-10's)
Sample 1x Callable Agency Issues
Description Call Date YTC YTM
FHLMC 5.35% 9/12 9/08 5.35% 5.35%
Select MBS Levels
Description Coupon Yield Spread/Duration*
15-Yr FNMA 5.50% 5.521% 117 / 5.31
30-Yr GNMA 5.00% 5.679% 127 / 6.65
*Duration @ 12 month Historical CPR
Morning Commentary: David Terrell

Treasuries rallied again this morning on speculation of a weak consumer confidence report to be released this morning. Confidence is expected to fall to 104 – the lowest in a year. If the confidence number is weaker than the survey is expecting, we should see another minor flight to quality. The markets are very jumpy right now and will over-react to any data outside of expectations. Speaking of expectations, composite home prices are expected to drop another 3.3%, and with inventories at a 16 year high don’t expect prices to start rising again any time soon. Some good news for the markets is that a modicum of stability has returned to the Bill market with yields back into the mid to low 4% range. Since the Fed reduced the fee that dealers pay to borrow Treasuries on Aug. 21, Bills have steadily fallen in price. Some of the major financial institutes including Citigroup were cut to “Neutral” by Merrill causing stock index futures to fall. Treasury volume was extremely light yesterday, and world index’s closed down.

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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