PMA’s term deposit program provides banks access to political subdivision deposits tailored specifically to meet the institution’s funding requirements. Whether on a primary or contingency basis, large block or small block, laddered or specific, collateralized or non-collateralized, PMA has a solution for bank’s funding needs.
Our depositor base consists primarily of municipalities, schools, libraries, water and park districts, most commonly known as political subdivisions. These political subdivisions receive the funding for their investments through their county sales and property taxes, user fees and state and federal sources. Typically these depositors are larger in size and may require further collateralization dependent on their state statute. Within each county, the public entity receives tax distributions throughout the year and then invests these funds to meet obligations. Funding is repeated on an annual basis, making political subdivisions a reliable and consistent source of deposits.
When used in conjunction with a financial institution’s funding requirements, PMA develops an individually tailored program. The main criterion necessary in program development is:
- Aggregate amount
- Individual deposit amounts (min and max)
- Initial program rate and rate reset period
- Types of deposit vehicles to be utilized
- Collateralization vehicles if applicable
In addition, to further streamline the program from an operational standpoint, depositor funds in excess of the FDIC insured limits can be collateralized utilizing a variety of collateral options on an individual or program basis.