Funding and Liquidity Experience

Migration from warehouse lines to FHLB Advances

• Executed all FHLB membership agreements
• Compared advance rates against various forms of collateral between alternatives
• Shifted funding process from one-by-one draws (hundreds each day) to managing daily balances with the FHLB (one transaction in or out)
• Negotiated attractive terms for unused back-up lines

Diversification of funding sources

• Expanded collateral pledged to the FHLB to increase capacity
• Established relationships with several listing services
• Contracted several broker-dealers to obtain market pricing for brokered CDs
• Executed trades with various counterparties to bring in brokered MMDA funds

• Established relationships with Promontory to support reciprocal deposits to replace secured account relationships (both public and private funds) and reduce reliance on large deposits
• Explored inter-bank relationships and bi-lateral lines
• Revisited retail pricing strategy to ensure that funding would be stable even if regulators imposed rate caps

Management of Regulatory Restrictions

• Identified limit on funds available from each source pursuant to regulatory order
• Tracked all deposits that were at rates in excess of market
• Built tools to track and manage deposit flows on a day-by-day basis
• Fine-tuned collateral pledged to maximize available securities
• Managed retail pricing strategy relative to FDIC limits
• Identified other assets that could be liquidated at reasonable prices; developed contingency plan to put liquidation in motion if/when trigger events occurred