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Certificate of Deposit Account RegistryService® (CDARS®)
Offer customers up to $50 million in FDIC insurance
Earn fee income by selling "excess" deposits to other network members
Purchase funds at competitive rates (without collateralization or credit limits)
Insured Network DepositsSM Service (INDSM)
Tap into another wholesale funding option; access large blocks of long-term funding ($25 million up to multi-billions) at floating rates
Promontory Interfinancial NetworkOver 2,700 institutions use our services to enhance their profitability, attract large-dollar deposits or obtain wholesale funding.
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What is CDARS?
The Certificate of Deposit Account Registry Service® or CDARS® is a service that your organization can use to provide customers with access to up to $50 million in FDIC insurance on CD investments.
CDARS is also a funding and liquidity management tool that your organization can use to access funds, manage its balance sheet, and enhance its profitability.
CDARS is a registered service mark of Promontory Interfinancial Network, LLC.
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Network Footprint & Growth
Only headquarters of our Member Banks are shown on this map. Additionally, we have network members in Alaska and Hawaii.
More than 2,700 financial institutions across the nation offer CDARS and billions of dollars are placed through the service every month.
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Put CDARS to Work for Your Bank Today
Retain & IncreaseDeposits
Retain & IncreaseDeposits
Make Portfolio Investments
Make Portfolio Investments
Earn Fee IncomeEarn Fee IncomeObtainFundingObtain
Funding
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Banks Use CDARS to:
Retain and increase deposits. (CDARS®Reciprocal transactionsSM)
Earn fee income by selling “excess deposits” to other banks while maintaining full ownership and control over the customer relationship. (CDARS®One-Way SellSM transactions)
Make a portfolio investment for your bank’s own account and earn a rate that may compare favorably to other alternatives. (CDARS® One-Way SellSM transactions)
Purchase deposits from other banks without having to establish or manage new customer relationships. (CDARS® One-Way BuySM transactions)
Earn Fee Income
Retain & IncreaseDeposits
Obtain Funding
Make PortfolioInvestments
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How CDARS Works
Reciprocal transactions
Your bank can attract large-dollar customers by offering them access to up to $50M in FDIC insurance, and the conveniences of one bank, one rate and one statement.
The customer makes a large deposit with your bank. You place those funds into CDs issued by other members of the Network. Since funds are deposited in increments of < $100,000, both principal and interest are eligible for full FDIC insurance.
Other Network Members do the same thing with their customers' funds.
With help from a sophisticated matching system, Network Members exchange deposits on a dollar-for-dollar basis.
Retain & Increase DepositsRetain & Increase Deposits
Earn Fee Income
Retain & IncreaseDeposits
Obtain Funding
Make PortfolioInvestments
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How CDARS Works
One-Way Sell transactions
Your bank can avoid keeping deposits on its balance sheet without turning good customers away and can earn fee income in the process.
Depending on prevailing rates, your bank may be able to offer higher rate deposits without increasing its cost of funds.
Example:
One Way Sell Rate Sheet
Given high CDARS reinvestment rates, your bank may be able to convert those accounts to Reciprocal transactions upon maturity if it wants funds at that time.
Earn Fee IncomeEarn Fee Income
Earn Fee Income
Retain & IncreaseDeposits
Obtain Funding
Make PortfolioInvestments
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How CDARS Works
One-Way Sell transactions
Invest for your bank’s own investment or liquidity portfolio in a product that is eligible for full FDIC insurance at a favorable spread versus alternative investments like Treasuries and Agencies.
Make Portfolio InvestmentsMake Portfolio Investments
Earn Fee Income
Retain & IncreaseDeposits
Obtain Funding
Make PortfolioInvestments
Treasury Rates are Constant Maturity Yields as reported by the U.S. Treasury. One-Way Sell APYs are calculated using a 365-day accrual basis and daily compounding of interest. The APYs assume amounts remain on deposit until maturity. Selection of other available payment options may result in different amounts earned and different yield.
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Obtain FundingObtain Funding
How CDARS Works
One-Way Buy transactions
One-Way Buy transactions may represent a cost-effective alternative to other funding sources. Your bank can bring in large deposits and reduce the administrative costs typically associated with deposit gathering.
There are no credit line requirements and no collateralization needs.
Banks looking for funds bid on the maximum amounts they are willing to accept at their bid rates in six different maturities.
Results are posted Wednesday and funds are available the next business day.
One Way Sell Rate Sheet
Earn Fee Income
Retain & IncreaseDeposits
Obtain Funding
Make PortfolioInvestment
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Why CDARS is Good For Your Bank
BENEFITS TO BANKS - SUMMARY
You can offer customers access to multi-million dollar FDIC insurance
You set the interest rate
You own the customer relationship
Customers communicate with your service team
Customers receive consolidated statements from your bank
Customers’ confidential information remains protected
Offer customers multi-million dollar FDIC insurance
Create a new revenue stream: non-interest fee income
Own the customer relationship
Gain pricing leverage
Customers receive consolidated statements from your bank
Customers’ confidential information remains protected
No credit lines needed
No collateralization required
No audit fees
No need to purchase stock
Quick turnaround – bid Wednesday and receive funds the next business day
CDARS Reciprocal CDARS One-Way Sell CDARS One-Way Buy
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Open accounts in multiple names, deal directly with multiple banks
Negotiate interest rates
Manually consolidate statements every month
Track changing collateral values for collateralized deposits
No need to track
Before CDARS Before CDARS After CDARS After CDARS
One bank – Your bank
One account statement
One interest rate
Why CDARS is Good For Your Customers
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The authority of institutional customers to invest through CDARS may be subject to restrictions under applicable law and/or investment policies.
Customers Who Can Benefit from CDARS®
• Charities
• Churches
• Colleges & universities
• Community foundations
• Endowment funds
• Foundations
• Homeowners associations
• Hospitals
• Religious institutions
• Government agencies
• Municipalities (villages, towns, cities, counties)
• Police departments
• Fire districts
• Public colleges and universities
• Public hospitals
• School districts
• State funds (such as state workers’ compensation funds)
• Utility districts (sewer, water, power, etc.)
Businesses Non-ProfitsPublic Funds OthersOf All Sizes:
• Small businesses, including partnerships, sole proprietorships, and entrepreneurial ventures
• Mid-size companies (public and private)
• Corporations (public and private)
• Franchises
Of All Types:
• Distributors
• Manufacturers
• Wholesalers
• Retailers
• Attorneys and law firms
• Banks and credit unions (for CRA credit or as earning assets)
• CPAs
• Financial planners
• Escrows
• 1031 tax-free property exchanges
• Estate planners
• Farms and ranches
• Private investors
• Trusts/Trustees
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Availability of CDARS for Public Fund Investors
If a depositor is subject to restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the depositor to determine whether the placement of the depositor's funds through CDARS or a particular CDARS transaction satisfies those restrictions.
MONTANA
WYOMING
IDAHO
WASHINGTON
OREGON
NEVADA
UTAH
CALIFORNIA*
ARIZONA
NORTH DAKOTA
SOUTH DAKOTA
NEBRASKA
COLORADO
NEW MEXICO
TEXAS
OKLAHOMA
KANSAS
ARKANSAS
LOUISIANA
MISSOURI
IOWA
MINNESOTA
WISCONSIN
ILLINOISINDIANA
KENTUCKY
TENNESSEE
MISS
ALABAMAGEORGIA
FLORIDA
SOUTHCAROLINA
NORTH CAROLINA
VIRGINIA
WV
OHIO
MICHIGANNEW YORK
PENN
MARYLAND
DELAWARE
NEWJERSEY
CONNRI
MASS
MAINE
VT
NH
ALASKA
HAWAII
CDARS Enabled
Legislation in the Pipeline
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Becoming a CDARS Member is Easy
Implementation is simple and quick. A four-step process…
Our team provides:
– Financial goal-setting support– Accounting and operations training– Turn-key marketing assistance (including a complementary initial
supply of marketing materials and templates)– On-going support
Set YourBank’s Goals
On-BoardYour Bank
Receive Training
Begin MarketingCDARS
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What is IND?
Insured Network DepositsSM, or INDSM, is a new offering from Promontory that provides banks with a brand new way to acquire stable, wholesale, floating-rate funding. It enables broker-dealers and other financial institutions to offer their customers a multi-bank, FDIC-insured deposit sweep account.
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How IND Works
Funding comes from hundreds of thousands of brokerage account cash balances being “swept” into your bank.
Amounts range from $25 million up to multiple billions of dollars.
Rates are based on a set spread above the daily Federal Funds Effective Rate.
Terms range from 3 to 5 years.
Funding is similar to taking out a multi-year floating rate advance from your Federal Home Loan Bank without the collateralization and stockholding requirements.
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Benefits of IND to Banks
Your bank can receive a cost-effective, stable source of deposit funding from IND.
The overwhelming majority of deposits comes in the form of MMDA balances, which are not subject to reserves.
There is no setup fee.
You account for IND deposits on an omnibus basis.
We handle all the individual records.
You work with an industry leader known for its regulatory experience and emphasis on compliance.
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Founders, Board of Directors, and Bank Advisory Board
Donald G. OgilvieChairman, American Bankers Association InternationalFormer President and CEO, ABA
Warren RudmanPartner, Paul, Weiss, Rifkind, Wharton & GarrisonFormer U.S. Senator
Jeffrey B. SchreierManaging Director, The Bank of New York
L. William SeidmanChief Commentator of CNBC-TVFormer Chairman, FDIC
J. Michael ShepherdPresident & COO, Bank of the West
O. Jay TomsonChairman, First Citizens National Bank, Mason City, IA Former President, Independent Community Bankers of America
Frank G. ZarbChairman, Frank Zarb AssociatesFormer Chairman & CEO, NASD
William Isaac, Chairman, Bank Advisory BoardChairman, The Secura GroupFormer Chairman, FDIC
Eugene A. LudwigChairman & CEOFormer Comptroller of the Currency
Alan S. Blinder Vice ChairmanFormer Vice Chairman of the Board of Governors of the Federal Reserve System
Mark P. JacobsenPresident & COOFormer Chief of Staff of the FDIC and Office of the Comptroller of the Currency
Eugene A. LudwigChairman & CEO, Promontory Interfinancial NetworkFormer Comptroller of the Currency
Anne L. ArmstrongChairman, Executive Committee of the Board of Trustees,Center for Strategic International StudiesFormer U.S. Ambassador to the United Kingdom
Alan S. BlinderVice Chairman, Promontory Interfinancial NetworkFormer Vice Chairman, Federal Reserve Board
James M. CulbersonChairman Emeritus, First National Bank & TrustFormer President, American Bankers Association
Art CertosimoVice Chairman, Promontory Interfinancial NetworkEVP and Head of Broker Dealer Services, The Bank of New York
Kenneth M. DubersteinChairman & CEO, The Duberstein GroupFormer White House Chief of Staff
Mark P. JacobsenPresident & COO, Promontory Interfinancial NetworkFormer Chief of Staff, Comptroller of the Currency and FDIC
Edward W. Kelley, Jr.Former Governor, Federal Reserve Board
Frank N. NewmanChairman & CEO, Shenzhen Development Bank, China Chairman Emeritus, Bankers Trust Company
Board Members & Bank Advisory Board RepresentationFounders
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Contact Information
Promontory Interfinancial Network, LLC
1515 N. Courthouse RoadArlington, VA 22201
1.866.776.6426www.promnetwork.com
For IND specific information, please contact H.D. Barkett,
Managing Director of our Treasury Desk
1.866.776.6426 x [email protected]
Deep SouthKenny Heredia [x3486]
Rocky MountainReg Truman [x3448]
South PlainsLance Caldwell [x3487]
South CentralChuck McBrayer [x3432]
NortheastPhil Pratt [x3485]
Mid-AtlanticErich Buckenmaier [x3354]
South AtlanticDanny Capitel [x3476]
PacificReg Truman [x3448]
South Great LakesMark Martello [x3444]
North PlainsLance Caldwell [x3487]
North Great LakesMark Martello [x3444]
FloridaDanny Capitel [x3476]
AK
HI
MT
WY
ID
WA
OR
NVUT
CA
AZ
ND
SD
NE
CO
NM
TX
OK
KS
AR
LA
MO
IA
MNWI
IL
IN
KY
TN
MS AL GA
FL
SC
NC
VAWV
OH
MINY
PA
MD
DE
NJ
CT RI
MA
ME
VTNH