Match Funding

PMA’ s clients consist of schools and municipalities that invest operating and bond proceeds year over year through the distribution of local property taxes and passed referendums.  Through these distributions, public entities have the ability to plan annual cash flows within a specific bandwidth and build out an annual cash flow and financial plan for the year.  From this data, public entities look to invest out to their respective liability need dates, and remove the timing aspect in their investment strategy.  PMA Financial Network, Inc. has the ability to match these investment term dates to the funding need dates of the institution, allowing for an automated and ideal method to match fund deposits.  

An institution looks to take advantage of the spread of specific loans that are originated at the bank during the month or quarter with term investments that PMA is able to provide with the public entity deposits.  A benefit that PMA’s pool of public entity clients provides is a wide range of clients in several states with investments occurring on various tax cycles.  This diversification of clients allows for PMA to be a consistent source of cost effective funding on a weekly basis.  If the institution prefers small or large block funding, PMA’s clients will follow a cash flow or annual distribution schedule which they utilize and follow without looking to redeem investments early.  Through PMA’s funding platform, institutions have the comfort of working with clients in which they have the ability to either provide a strict early redemption fee policy or non-redeemable options.  This allows for the institution to effectively capitalize on a match funding strategy without the risk of early redemption.