Western Independent Banker - January/February 2009 - (Page 18)

What’s your document management objectives? We can help you achieve them! Proﬁtability of Hawaii, a leading provider of imaging & ﬁnancial software, virtual printing & digital conversion services can help you meet your goals. Backed by 30+ years of experience, POH provides customers with innovative and ﬂexible solutions for check processing and document handling for both inhouse and service bureau environments. POH offers integrated solutions for Check 21, check image exchange, IRD and image statement printing including eStatement, check imaging, remote capture, storage, display & research, image statements, web presentment, items processing, and returns processing. It would greatly benefit banks if broader perspective were injected into the discussion: core versus non-core funding defi nitions would provide clarity. Perhaps inject a ratio of core versus non-core funding before applying insurance premiums. The spreads between funding alternatives without bias would allow a bank to tap the most cost effective funding sources without penalty. Diversification of non-core funding sources is prudent: FHLB advances, brokered deposits, CDARS—these all play a responsible role in funding for all banks. By imposing a higher premium for noncollateralized non-core funding, the premiums would be far less onerous. Brokered CDs have been referred to as hot money. What is hot money? We receive calls from bankers anxious to replace maturing public funds CDs, which are typically in the millions, and can depart without notice. Recently, major banks have been offering local rates that are up to 75 basis points higher than the cost of brokered deposits or CDARS; public funds CDs have lower rates but come and go; MMDAs are demand deposits. Conclusion Increased insurance premiums may be inevitable, but the proposed rule is problematic. And while the insurance fund must be recapitalized, it seems the FDIC is pressing premium increases on the industry at a time when it can least afford them. By the time of this publication, the conclusion will be known and new premiums likely imposed. If we failed to accomplish core versus non-core funding defi nitions this time, we suspect the issue will come up again as it has not yet found its logical conclusion. Susan Murphy is a managing director at Morgan Keegan, & Co, Inc., in the Fixed Income Capital Markets CD Department. She can be reached at (800) 628-6664 or sue.murphy@morgankeegan.com. Our solutions help ﬁnancial institutions meet their ﬁnancial & customer service goals. 14739 Catalina Street • San Leandro, California 94577 • 510-357-1400 • Fax: 510-357-1490 18 www.wib.org Western Independent Banker http://www.audit-one.com http://www.poh.com http://www.nationwidecompliance.com http://www.wib.org

Table of Contents Feed for the Digital Edition of Western Independent Banker - January/February 2009

Western Independent Banker - January/February 2009 Contents A Message from the President & CEO Managin Liquidity and Funding During a Recession Staying Liquid in a Time of Regulatory Sea Change Managing Liquidity in a Volatile Rate Environment Regulatory Outlook for Brokered Deposits Deposit Growth and Branch Network Effectiveness Turbo Charging Account Acquisitions FDIC-Insured Sweep Accounts Creating a Contingency Funding Plan WIB Service Corporation Report WIB Calendar New Members Index of Advertisers advertiser.com

Western Independent Banker - January/February 2009

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