September 27, 2013Daily Rates & Viewpoints From the Officers & Staff of TIB.

Yes, It's Time To Think About Your Budget

It’s that time of year again – football is being played everywhere from the local school to college and professional stadiums, the days are getting shorter, the kids are back in their routines, the grass growing in the yard is slowing down (I hope), and yes, it’s time to start thinking about your budget for next year. 

At the same time, we receive frequent reminders that our economy is still not where we would like it to be. Perhaps it is internal measures in the form of soft loan demand or a desire to increase fee income to offset compressed loan margins to boost the bottom line – in other cases, it may be the soft labor market or perhaps the latest consumer confidence survey. Either way, most people would agree that general economic conditions are still soft. 
So, as a community banker, what are your next steps to turn the tide? The first step is a commitment to ongoing education for your staff to have a solid 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.
By equipping consumers and businesses with the right tools, multiple goals can be achieved, including increasing customer confidence and deepening your customer relationships, while enhancing your bottom line.
As your bank works diligently to ensure its core product offerings are competitive and profitable, your credit card program can inadvertently be overlooked as a very valuable customer relationship tool and source of fee income. If your bank has partnered with TIB or has another solution in place, we welcome the opportunity to provide a complimentary review of your portfolio to make sure the program is addressing the current needs of your bank and your customers.

James Hudson James Hudson
Sr. Vice President/Card Services

Market Levels @ 7:10 AM CDT

TIB Fed Funds & MMDA Rates - Previous Day
Agent 0.20% Prin 0.05% MMDA 0.30%
STAR Prin 0.10% STAR MMDA 0.35%
Key Indices/Commodities
1 - Month LIBOR 0.17% Dow Jones 15328.30
3 - Month LIBOR 0.24% NASDAQ 100 3787.42
1-Yr LIBOR 0.62% S&P 500 1685.00
1-Yr CMT 0.09% Spot Gold 1341.30
Prime 3.25% Spot Silver 22.02
3-yr LIBOR Swap/Offer 0.78% Spot Crude Oil 102.92
5-yr LIBOR Swap/Offer 1.55% CRB Index 287.03
3 Mo - Fed Fund Futures 0.1% 6 Mo - Fed Fund Futures 0.12%
US Treasury Yields US Non-Callable Agency Yields
Yield Maturity Yield Spread
0.00% 90 - Days    
0.00% 180 - Days    
0.28% 2 - Year 0.36% 8bp
0.60% 3 - Year 0.75% 15bp
1.38% 5 - Year 1.59% 21bp
2.59% 10 - Year 3.08% 49bp
3.64% 30 - Year    
231 BPs Yield Curve(2's-10's)
Sample 1x Callable Agency Issues
Description Call Date YTC YTM
FNMA 1.1 4/17/17 4/14 1.11% 1.11%
Select MBS Levels
Description Coupon Yield Spread/Duration*
15-Yr FNMA 3.00% 1.89% 98 / 3.41
30-Yr GNMA 3.50% 2.81% 135 / 4.47
*Duration @ 12 month Historical CPR
Morning Commentary: Reed Bateman

Treasuries have rallied in price to close out the week.  The 10-year note is up about 3/8ths of a point, yielding around 2.60%.  Since the FOMC meeting concluded at noon Wednesday of last week, we’ve seen the 10-year yield give up about 30 basis points.  Personal income for August increased by 0.4%, in line with estimates, as was personal spending, up 0.3% for the month.  Core PCE year-over-year, the closely watched inflation indicator by the Fed, increased 1.2% in August, which was slightly lower than expected, and it was revised lower for July.  As I mentioned yesterday, the dovish Fed members are a fan of that.  University of Michigan consumer confidence increased from 76.8 to 77.5 in September, but was forecast to increase to 78.0.  We’ll have a good deal of budget and debt ceiling talk over the weekend, but it’s doubtful much will be accomplished.  Next Friday, we’ll see the release of nonfarm payrolls and unemployment figures for September. 

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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