Wednesday, May 23, 2018
MANAGING DIRECTOR: Scott Carrithers   PORTFOLIO SALES AND SERVICE: Steve Panknin • George Morris • Jeff Goble • Chris Thompson • Sean Doherty Kevin Doyle • Lonnie Harris •  Mark Tranckino • Robert Schuyler • Tom Toburen • Josh Kiefer  Nicole Burczyk • Kelley Frye • Natalie Regan • Aaron Stoffer • Chuck Honeywell • Gus Koppen

US Treasury Market
Date	1 mo	3 mo	6 mo	1 yr	2 yr	3 yr	5 yr	7 yr	10 yr	20 yr	30 yr
5/16/18	1.69	1.92	2.09	2.32	2.58	2.76	2.94	3.05	3.09	3.16	3.21
5/17/18	1.70	1.92	2.10	2.32	2.57	2.75	2.94	3.07	3.11	3.19	3.25
5/18/18	1.68	1.91	2.09	2.32	2.55	2.71	2.90	3.02	3.06	3.14	3.20
5/21/18	1.71	1.93	2.14	2.35	2.58	2.73	2.90	3.02	3.06	3.13	3.20
5/22/18	1.73	1.93	2.13	2.34	2.59	2.73	2.90	3.02	3.06	3.14	3.21

                                                                                      Source: U.S. Department of the Treasury, as of 05/22/18  

 Staying Afloat With Your Contingency Liquidity Policy

Ella Fitzgerald’s 1968 hit Summertime reminds us that “summer is here and the livin’ is easy.”   With loan demand soaring and the economy running in high gear it might just seem that way.  But before we think we’re in the tall cotton, let’s tend to a seasonal topic – liquidity funding.  After all, those loans need to be funded one way or another.  Higher levels of loan demand mean the contingency liquidity policy is an important area of focus. 
 
ALCO policies enumerate maximum levels of wholesale funding as a percentage of total assets, typically 40% (+/-). The Contingency Funding Plan limits the sources of wholesale funding.  The following sources and percentages are typical:




Different economic environments may favor different funding sources. The objective is to utilize the most economical funding sources to better manage both interest rate risk and cost of funds. The brokered deposit section is one you may find to be out of date. This funding source is a cost effective way to obtain funding and should be an option made available by policy.  This facility will be used when the retail deposit market is either too expensive or, if other wholesale options are prohibitive from a cost or control aspect.  Country Club Bank offers brokered deposit rates daily.  Keep this option in mind and make sure it’s approved in your policy.
                              

                                        

        

This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.

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