Testimonials from bankers.
Testimonials from bankers.
I started my career out as a bank examiner with the Federal Reserve. I can’t stress enough the importance of maintaining a strong and robust regulatory compliance infrastructure and overall risk management infrastructure. [IntraFi] being such a significant vendor or partner, really, you know we have to go through a vendor due diligence process on an annual basis. I’ve never had any issue with presenting a dozen, two dozen questions to the folks over at [IntraFi] and getting a very thorough and expeditious response from them. It shows in the culture of [IntraFi] and how they’ve been able to help us deal with our vendor due diligence and compliance issues.
I’ve been President & CEO since 1999. I remember going to a meeting and a guy told me that I would be the last president of the Bank of Clarke County because, at some point, the bank would be forced to sell because of all the regulatory pressures and constraints on earnings. And, you couldn’t keep your shareholders happy. In order to survive, we needed to grow. In a perfect world, you use core deposits, but core deposits and the loan demand sometimes don’t flow at the same time. So we’re able to use [IntraFi] to sort of fill in and sort of level off the gaps there, and it’s been a real big help to us. And it allows us to sort of leverage the assets we have and the capital we have to grow.
In 2008, we were very tight on managing our collateral for public funds. Local municipalities were able to provide larger amounts of deposits but required protection. Prior to [IntraFi’s] products, we had hard thresholds and a difficult time retaining and originating these relationships. As we continue to see growth of our balance sheet, [IntraFi’s] products will be important to taking care of certain customers. I think our success allows us to serve that mission better.
Our public funds customers appreciate knowing that when they place their funds through [IntraFi Network Deposits], those funds are eligible for FDIC protection beyond $250,000 and earn interest. That benefits them, as well as local taxpayers, as our bank can make those funds available for investment within the community.
Because we are a member of the [IntraFi] Network, we have an opportunity to generate fee income on deposits we are not using for lending when loan demand is slack.
It’s really important for us to have a stable, reliable, accessible, and nimble source of funding at a reasonable price, and that’s something that [IntraFi] provides for us.
[IntraFi] wants to serve us. It’s all about the relationship.
The products that [IntraFi] offers…CDs, and money market deposit accounts, demand deposit accounts through [IntraFi Network Deposits] that are insured — those are products that appeal to a space that has, for community banks, been difficult to garner from the big box banks over the years. Pricing is something that doesn’t get spoken a great deal about when we’re looking at [IntraFi Network Deposits]. You’re pricing these deposits and trying to win over these larger clients, but it’s on your terms rather than a wholesaler that says, ‘Well, this is the price for today—the all-in cost.' I think that’s really huge for a community bank that relies a great deal on their net interest margin because their fee-based activities are a smaller part of their overall profitability model. So it’s not just the funding…it’s also the ability to manage the pricing.
Training our associates is the key to our success. Once our team rallied behind this service, deposit growth just took off. Not long after we launched this product, we had several million in [IntraFi Network Deposits]; in just a few months it had doubled, and in a few more months it had tripled. It grew with relative ease.
We have been long-time [IntraFi Network Deposits] users. We and our customers have come to trust the quality and professionalism of [IntraFi].
We love that [IntraFi Network] gives us options. We can either attract deposits and sell the excess to other banks [with IntraFi Network Deposits] or purchase funding through [IntraFi Funding]. This is especially helpful in today’s regulatory environment.
We were one of the first banks to join the [IntraFi] Network. We realized that [IntraFi Network Deposits] was a game changer—one that would give banks like ours not just competitive equality with large financial companies, but a real competitive advantage in attracting local customers.
With great success, we are selling IntraFi Network Deposits to our large-deposit clients as a retention vehicle, as well as using [IntraFi Network Deposits] to lower cost of funds and attract new deposit business.
So, we have been able to use this and pick up a lot of deposits that we wouldn't have been able to before. We've got one client that we may have lost because his account far exceeded the $250K FDIC limit, and we didn’t want to pledge on it. We probably got $10 million on deposit from them now, because we can use this service – it has made us very competitive.
We have a large portfolio for our bank size, and we really use this. Our clients really do appreciate this, and if they're not talking about FDIC insurance, it's still a concern for them if they need a large amount of liquidity on the private side. So, we continue to talk about it. SVP, Corporate Services, $1B in Assets
So the advantage to them [municipalities] to move it over to us is that they leave a large regional bank that they may be banking with that the funds are invested in that local government pool. And when they move over to us, they are working with a more local community bank. What we found that municipalities are enjoying the fact that they're partnering with their community bank versus a regional bank, because the community bank is who is helping, you know business clients and their residents with their banking and keeping the businesses going because we're very engaged with the business community. So, the local municipalities are feeling as if they should also do business locally...So we've been able to utilize [IntraFi], to be able to get the entire relationship.
I would say [IntraFi] is a partner...we may not have some of the customer relationships that we have today, if we didn't have [IntraFi] services…