TIB Ticker - It's Beginning To Look A Lot Like...

October 11, 2012Daily Rates & Viewpoints From the Officers & Staff of TIB.

It's Beginning To Look A Lot Like...

As we head into the final quarter of 2012, a popular quote from Will Rogers comes to mind – “Even if you’re on the right track, you’ll get run over if you just sit there.”

As a community banker working diligently to finish the year strong, it is very easy to forget about card programs which can be a valuable tool for increasing customer retention, achieving fee income goals, and attracting new business.

The start of the 2012 Holiday shopping season is only a few weeks away according to the National Retail Federation (NRF). The NRF estimates that Holiday sales this year will increase to $586.1 billion, a jump of 4.1% over 2011.

How big is the Holiday season in the grand scheme of things? Nearly one-fifth of the retail industry’s annual sales come directly from spending during the months of November and December. Since 2008, Holiday sales have continued to steadily increase despite economic conditions as indicated on the chart below.

Year	Holiday Sales (in millions)	Holiday Sales Change	% of Annual Sales
2011	$ 563,018	5.6%	19.5%
2010	$ 533,394	5.5%	19.6%
2009	$ 505,370	0.3%	19.2%
2008	$ 503,805	-4.4%	18.4%

There will be a captive pool of consumers and retail businesses focused on Holiday shopping over the next couple of months. At the same time, non-retail commercial entities may be looking for a convenient transactional device to accommodate end of year spending. Both audiences present community banks with an opportunity. Providing solutions to meet the seasonal needs of your retail and commercial banking customers will yield dividends for years to come.

So, as a community banker, what do you do? The first step is a commitment to ongoing education for your staff to have a good working knowledge of all products and services offered by your bank. The next step is to increase customer awareness about your offerings, and more importantly, that those products and services are competitive with what is available in the general marketplace.

As your “Trusted Partner”, TIB stands ready to assist your bank so you’re prepared to address the needs of your customers during the upcoming Holiday season.

Aaron Starks Aaron Starks
Vice President/Associate Card Relationship Mgr.
astarks@mybankersbank.com

Market Levels @ 8:24 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	0.21%	Dow Jones	13344.97
3 - Month LIBOR	0.34%	NASDAQ 100	3051.78
1-Yr LIBOR	0.94%	S&P 500	1436.30
1-Yr CMT	0.18%	Spot Gold	1770.20
Prime	3.25%	Spot Silver	34.19
3-yr LIBOR Swap/Offer	0.47%	Spot Crude Oil	92.60
5-yr LIBOR Swap/Offer	0.81%	CRB Index	307.01
3 Mo - Fed Fund Futures	0.13%	6 Mo - Fed Fund Futures	0.13%

US Treasury Yields		US Non-Callable Agency Yields
Yield	Maturity	Yield	Spread
0.05%	90 - Days
0.09%	180 - Days
0.22%	2 - Year	0.26%	4bp
0.32%	3 - Year	0.38%	6bp
0.66%	5 - Year	0.80%	14bp
1.70%	10 - Year	1.99%	29bp
2.90%	30 - Year
148 BPs		Yield Curve(2's-10's)

Sample 1x Callable Agency Issues
Description	Call Date	YTC	YTM
FNMA 1.50 10/30/20	10/15	1.50%	1.50%

Select MBS Levels
Description	Coupon	Yield	Spread/Duration*
15-year FNMA	3.00%	1.35%	84 / 3.72
30-year GNMA	3.50%	2.31%	69 / 7.74
*Duration @ 12 month Historical CPR

Morning Commentary:	David Terrell
Initial Jobless Claims fell to a four year low today, which has sent equities up and bond prices down, and consumer confidence stays near a three month high. The 10 year treasury yield is above 1.70% for the fourth trading day out of the last five. The strong jobs number has been enough to overcome a 2-notch downgrade of Spain’s debt by S&P. It is just 1 notch above junk now with a negative outlook. The IMF is calling for Greece to be given an additonal two years to meet its obligations. Read: let’s give them another two years to protest and still not collect their taxes. World economic concerns are enough that Brazil has cut its rate to the lowest level ever and Korea has cut its benchmark for the second time this year, as well.

Morning Commentary:

David Terrell

Initial Jobless Claims fell to a four year low today, which has sent equities up and bond prices down, and consumer confidence stays near a three month high. The 10 year treasury yield is above 1.70% for the fourth trading day out of the last five. The strong jobs number has been enough to overcome a 2-notch downgrade of Spain’s debt by S&P. It is just 1 notch above junk now with a negative outlook. The IMF is calling for Greece to be given an additonal two years to meet its obligations. Read: let’s give them another two years to protest and still not collect their taxes. World economic concerns are enough that Brazil has cut its rate to the lowest level ever and Korea has cut its benchmark for the second time this year, as well.

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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