A $6 billion bank needed $500 million to help fund tax-refund anticipation loans in Q1, and the bank needed lump-sum amounts quickly at certain points during the month.
Potential Solutions
FHLB overnight advances
Deposit listing services
IntraFi FundingSM (formerly ICS®)
Benefits to Bank
Can customize a plan to receive funding blocks on a determined or more flexible schedule
Can purchase funding that counts as deposits, not borrowings (enhances loan-to-deposit ratio)
Is available without collateralization or stock purchase requirements
Is quicker and more cost efficient compared to deposit listing services
Bank’s Chosen Path
Chose IntraFi FundingSM (formerly ICS®) for a customized funding plan that the bank used to create a ramp-up schedule and a ramp-down schedule to meet its short-term funding needs
Used brokered CDs to supplement its funding needs