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Fund a Volatile Pipeline

A $200 million bank is involved in real estate warehouse lending that causes them to have daily balance sheet fluctuations of $15-20 million.

Potential Solutions

  • FHLB overnight advances

  • Fed Funds purchased

  • Correspondent line of credit

  • IntraFi FundingSM (formerly Insured Overnight Funding®)

Benefits to Bank

  • Is cost effective compared to other options

  • Counts as a deposit, not a borrowing (enhances loan-to-deposit ratio)

  • Is available without collateralization or stock purchase requirements

  • Frees up capacity if it needs to tap FHLB

  • Diversifies overnight sources of funding, a positive for a contingency plan

Bank's Chosen Path

The bank decided to use IntraFi FundingSM (formerly Insured Overnight Funding®) to manage the daily fluctuations.