Pub. 14 2017 Issue 1

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S Issue 1 • 2017 17 This shift in expectations may have been due, in part, to uncertainty following the June Brexit vote, which caused U.S. Treasury securities to fall sharply, U.S. equity prices to decline, and the foreign exchange value of the dollar to increase. Turmoil in Europe was also paired with mixed economic news in the United States. The mid-year economic roller-coaster and the failure of the economy to hit the inf lation and employment targets that the Fed had set at the end of 2015 delayed Fed action on interest rates and raised the possibility of a much longer wait for any future interest rate movement. However, the eventual impact of the mid-year turmoil was less negative and shorter term than many industry observers expected. By August, acute, economic anxi- ety had mostly dissipated; Treasury yields were down only slightly, equity prices were higher, and the foreign exchange value of the dollar was little changed. Positive jobs numbers supported more economic optimism and revived belief in a December interest rate increase, which ultimately happened. Reporting in November 2016, nearly 73% of respon- dents expected to experience a moderate increase in their funding costs within 12 months. This was three percentage points higher than reported for the same time one year prior. Less than 3% expect to see a significant increase in funding costs. While interest rates finally appear primed to move, it’s worth noting that the expectation was in a similar place last year, and, as with last year, a range of economic factors could still impact the Fed’s decision-making on rates. About Promontory Interfinancial Network Promontory Interfinancial Network offers unique services that bring banks and other institutions together in a way that helps each to benefit from the Power of ManySM—enabling them to offer services that otherwise might be too difficult or costly for them to offer on their own and providing themwith tools to help manage their balance sheets.  Promontory Interfinancial Network’s services include InsuredCash Sweep®, CDARS®, Bank Assetpoint®, Residential Mortgage NetworkSM, IND®, and Yankee Sweep®. For more information about Promontory Interfinancial Network and its ser- vices, please contact GlennMartin at (866) 776-6426, ext. 3462 or gmartin@ promnetwork.com. © 2017 Promontory Interfinancial Network, LLC 1 FDIC’s statistics on depository institutions