Transcript Slide 1

IDC Deposits Corp.
Money Market Based
Funding & Investing Solutions
Presented by Kimberly Weeks
Agenda
Company Information
Products
• MMAX
Expanded FDIC Insurance Coverage
• Funding Program
• Target Account
Fed Funds Sold Option
Questions? Please Ask Anytime!
Company Growth
2006
Participating
Banks (Issuers
& Investors)
Assets in
Deposit
Network®
2007
2008
100 Banks 140 Banks 325 Banks
$120 MM
$180 MM
$530 MM
Company Information
• Founded in December 2003
• IDC Headquarters: Atlanta, GA
Operations Support: Miami, FL
Regional Sales Office: Norwalk, CT
• Senior Management Team has Extensive
Industry Experience
• Custodian -- Pacific Coast Bankers’
Bank
Expanded FDIC Insurance Coverage – Flow of Funds
Your Customer – Commercial, Retail or Public
$1,500,000
Customer Opens MMA: Regular Bank Paperwork
Plus Deposit Placement Agreement
The Deposit Network®
directs the
distribution of funds to
banks throughout US
Your Bank
$250,000
Network Custodian: PCBB
$1,250,000
Bank 1
$245,000
Bank 2
$245,000
Bank 3
$245,000
Bank 4
$245,000
Bank 5
$245,000
Bank 6
$25,000
Confirmations & Monthly Statements
Provided by IDC Deposits Corp.
Bottom Line for the Customer: All Funds are 100% Insured
The MMAX Account
(For the CFO)
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No Fees to Your Bank, Use as Needed
Increase Deposits and/or Fee Income
Balance Sheet Management
Free Up Collateral
Easy Accounting
FDIC Opinion on File
Current Rate: Paying 1.15%
The MMAX Account
(For the Marketing Dept)
• Retain and Expand Your Retail and
Commercial Customers
• Product Advantage/Avoid Rate Game
• Easy to Sell, Customer is Familiar
with Money Market Accounts and
FDIC Insurance
• Private Label
MMAX Features & Benefits
(For Your Customer)
• Full FDIC Insurance Coverage
• No Risk
• 6 Withdrawals per Month
• 24 (or 48) Hours Notice / Liquid Funds
• Confirmations & Monthly Statements
Provided
• Not a Teaser Rate
• Settle Daily
MMAX Potential Candidates
• High Net Worth Individuals/Customers
with Balances around +$100k
• Commercial Accounts
• HOA Management Companies
• Public Entities
• Foundations / Non-profits
• Escrow Accounts
• 1031 Tax Deferred Exchanges
Implementation & Support:
Plan for Success
• Operational Training
– Back Office Procedures
• Sales Training
• Turnkey Marketing Program
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Website Banners
Advertisements
Statement Stuffers
Brochures
Funding Program
Bank
Bank
Bank
Your Bank
PCBB
Custodian
Bank
Bank
Bank
Liquidity Provided By: Banker’s Banks,
Individual Banks & MMAX Banks
No CIP Issues
MMAX
accounts
Funding Solution
• Cost of Funds – 1.60%
• IDC Deposits’ Funding System Operates through a
Money Market Account
• The Account is set up with the Bank Customer by
our Custodian, Pacific Coast Bankers’ Bank
• The Account is the “Conduit” for all Funding and is
simply another MMDA on the Bank’s Books
• The Amount of Funds Rebated Back to the MMAX
Bank is Dependent upon the Liquidity in the System
• The Deposits are Classified as Brokered
• No CIP Issues
Funding Solution Benefits
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Low Cost Funding
Easy and Reliable - Simple Documentation
No Collateralization
Long Term Funding with Low, Adjustable
Rates
• Contingency Liquidity – use it when you
need it
Regulatory
 Banks: Must be “Well Capitalized”
– Has a total risk-based capital ratio of 10.0% or greater, and
– Has a Tier 1 risk-based capital ratio of 6.0% or greater and has a leverage
ratio of 5.0% or greater and is not subject to any written agreement, order,
directive, or prompt corrective action directive issued by OCC.
 If “Adequately Capitalized”: must have applied for and been granted a
waiver by the FDIC to accept, renew or roll over a brokered deposit.
Subject to further rate restrictions.
– “Adequately Capitalized” has a total risk-based capital ratio of 8.0% or
greater and a Tier 1 risk-based capital ratio of 4.0% or greater, and has a
leverage ratio of 4.0% or greater, or a leverage ratio of 3.0% or greater if the
bank is rated 1 in the most recent examination of the bank.
 Undercapitalized institutions may not accept, renew or roll over any
brokered deposit.
Regulatory
 CFR Title 12 Section 337.6 permits the acquisition
of brokered deposits by qualified FDIC insured
institutions.
 FDIC Manual of Examination:
“The acceptance of brokered deposits by well-capitalized
institutions is subject to the same considerations and concerns
applicable to any other type of special funding. These concerns
relate to volume, availability, cost, volatility, and maturities and
how the use of such special funding fits into the institution’s overall
liability and liquidity management plans. There should be no
particular stigma attached to the acceptance of brokered deposits
per se and the proper use of such deposits should not be
discouraged.”
The Target Account
Investing Excess Funds
• Fed Funds Sold Alternative
• Bank has excess funds and desires to invest
in a highly secure and liquid instrument
• Expanded FDIC Insurance
• The funds are distributed to a network of
banks, insuring full FDIC coverage
• Current Rate: Paying 1.15%
Thank You For Your Time Today!
If you have questions or would like paperwork, please
email [email protected]
Kimberly Weeks
[email protected]
President
Institutional Deposits Corp.
6190 Powers Ferry Road, Suite 150, Atlanta, GA 30339
Dir. 770-627-9748
Ofc: 866-300-0847
Visit us at www.idcdeposits.com