Are you planning to invest in derivatives?

President and chief executive, Randolph Bank and Trust Co. Asheboro, N.C.

Yes, we do plan to invest in them in the future, and we have had good success with them over the past three years.

We use interest-rate floors, caps, and collars. We use those same products on a deferred basis. It was the best way to manage interest rate risk. We did not want to extend out on the yield curve in investments.

Chairman and chief executive, University National Bank and Trust Palo Alto, Calif.

No, we do not plan to. At this point, we don't understand them, so we're not going to deal with them.

We're not sure in our minds - in my mind - that they in fact perform as they're billed to perform in all environments. I've seen evidence in the past where derivatives have failed to meet their objectives.

We don't sell mutual funds in this bank and would never consider selling mutual funds.

President, Intercontinental Bank Miami

Today, we have no derivative securities. We think we may buy some interest-rate swaps and collars in the near future.

We have a significant demand for middle-return fixed-rate loans. We would like some rate protection. When we get a large enough pool, we may go out and buy a swap which will convert our fixed-rate loans to floating-rate loans.

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