Funding Solutions

CDARS and IND

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Certificate of Deposit Account RegistryService® (CDARS®)

Offer customers up to $50 million in FDIC insurance

Earn fee income by selling "excess" deposits to other network members

Purchase funds at competitive rates (without collateralization or credit limits)

Insured Network DepositsSM Service (INDSM)

Tap into another wholesale funding option; access large blocks of long-term funding ($25 million up to multi-billions) at floating rates

Promontory Interfinancial NetworkOver 2,700 institutions use our services to enhance their profitability, attract large-dollar deposits or obtain wholesale funding.

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What is CDARS?

The Certificate of Deposit Account Registry Service® or CDARS® is a service that your organization can use to provide customers with access to up to $50 million in FDIC insurance on CD investments.

CDARS is also a funding and liquidity management tool that your organization can use to access funds, manage its balance sheet, and enhance its profitability.

CDARS is a registered service mark of Promontory Interfinancial Network, LLC.

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Network Footprint & Growth

Only headquarters of our Member Banks are shown on this map. Additionally, we have network members in Alaska and Hawaii.

More than 2,700 financial institutions across the nation offer CDARS and billions of dollars are placed through the service every month.

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Put CDARS to Work for Your Bank Today

Retain & IncreaseDeposits

Retain & IncreaseDeposits

Make Portfolio Investments

Make Portfolio Investments

Earn Fee IncomeEarn Fee IncomeObtainFundingObtain

Funding

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Banks Use CDARS to:

Retain and increase deposits. (CDARS®Reciprocal transactionsSM)

Earn fee income by selling “excess deposits” to other banks while maintaining full ownership and control over the customer relationship. (CDARS®One-Way SellSM transactions)

Make a portfolio investment for your bank’s own account and earn a rate that may compare favorably to other alternatives. (CDARS® One-Way SellSM transactions)

Purchase deposits from other banks without having to establish or manage new customer relationships. (CDARS® One-Way BuySM transactions)

Earn Fee Income

Retain & IncreaseDeposits

Obtain Funding

Make PortfolioInvestments

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How CDARS Works

Reciprocal transactions

Your bank can attract large-dollar customers by offering them access to up to $50M in FDIC insurance, and the conveniences of one bank, one rate and one statement.

The customer makes a large deposit with your bank. You place those funds into CDs issued by other members of the Network. Since funds are deposited in increments of < $100,000, both principal and interest are eligible for full FDIC insurance.

Other Network Members do the same thing with their customers' funds.

With help from a sophisticated matching system, Network Members exchange deposits on a dollar-for-dollar basis.

Retain & Increase DepositsRetain & Increase Deposits

Earn Fee Income

Retain & IncreaseDeposits

Obtain Funding

Make PortfolioInvestments

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How CDARS Works

One-Way Sell transactions

Your bank can avoid keeping deposits on its balance sheet without turning good customers away and can earn fee income in the process.

Depending on prevailing rates, your bank may be able to offer higher rate deposits without increasing its cost of funds.

Example:

One Way Sell Rate Sheet

Given high CDARS reinvestment rates, your bank may be able to convert those accounts to Reciprocal transactions upon maturity if it wants funds at that time.

Earn Fee IncomeEarn Fee Income

Earn Fee Income

Retain & IncreaseDeposits

Obtain Funding

Make PortfolioInvestments

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How CDARS Works

One-Way Sell transactions

Invest for your bank’s own investment or liquidity portfolio in a product that is eligible for full FDIC insurance at a favorable spread versus alternative investments like Treasuries and Agencies.

Make Portfolio InvestmentsMake Portfolio Investments

Earn Fee Income

Retain & IncreaseDeposits

Obtain Funding

Make PortfolioInvestments

Treasury Rates are Constant Maturity Yields as reported by the U.S. Treasury. One-Way Sell APYs are calculated using a 365-day accrual basis and daily compounding of interest. The APYs assume amounts remain on deposit until maturity. Selection of other available payment options may result in different amounts earned and different yield.

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Obtain FundingObtain Funding

How CDARS Works

One-Way Buy transactions

One-Way Buy transactions may represent a cost-effective alternative to other funding sources. Your bank can bring in large deposits and reduce the administrative costs typically associated with deposit gathering.

There are no credit line requirements and no collateralization needs.

Banks looking for funds bid on the maximum amounts they are willing to accept at their bid rates in six different maturities.

Results are posted Wednesday and funds are available the next business day.

One Way Sell Rate Sheet

Earn Fee Income

Retain & IncreaseDeposits

Obtain Funding

Make PortfolioInvestment

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Why CDARS is Good For Your Bank

BENEFITS TO BANKS - SUMMARY

You can offer customers access to multi-million dollar FDIC insurance

You set the interest rate

You own the customer relationship

Customers communicate with your service team

Customers receive consolidated statements from your bank

Customers’ confidential information remains protected

Offer customers multi-million dollar FDIC insurance

Create a new revenue stream: non-interest fee income

Own the customer relationship

Gain pricing leverage

Customers receive consolidated statements from your bank

Customers’ confidential information remains protected

No credit lines needed

No collateralization required

No audit fees

No need to purchase stock

Quick turnaround – bid Wednesday and receive funds the next business day

CDARS Reciprocal CDARS One-Way Sell CDARS One-Way Buy

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Open accounts in multiple names, deal directly with multiple banks

Negotiate interest rates

Manually consolidate statements every month

Track changing collateral values for collateralized deposits

No need to track

Before CDARS Before CDARS After CDARS After CDARS

One bank – Your bank

One account statement

One interest rate

Why CDARS is Good For Your Customers

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The authority of institutional customers to invest through CDARS may be subject to restrictions under applicable law and/or investment policies.

Customers Who Can Benefit from CDARS®

• Charities

• Churches

• Colleges & universities

• Community foundations

• Endowment funds

• Foundations

• Homeowners associations

• Hospitals

• Religious institutions

• Government agencies

• Municipalities (villages, towns, cities, counties)

• Police departments

• Fire districts

• Public colleges and universities

• Public hospitals

• School districts

• State funds (such as state workers’ compensation funds)

• Utility districts (sewer, water, power, etc.)

Businesses Non-ProfitsPublic Funds OthersOf All Sizes:

• Small businesses, including partnerships, sole proprietorships, and entrepreneurial ventures

• Mid-size companies (public and private)

• Corporations (public and private)

• Franchises

Of All Types:

• Distributors

• Manufacturers

• Wholesalers

• Retailers

• Attorneys and law firms

• Banks and credit unions (for CRA credit or as earning assets)

• CPAs

• Financial planners

• Escrows

• 1031 tax-free property exchanges

• Estate planners

• Farms and ranches

• Private investors

• Trusts/Trustees

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Availability of CDARS for Public Fund Investors

If a depositor is subject to restrictions with respect to the placement of funds in depository institutions, it is the responsibility of the depositor to determine whether the placement of the depositor's funds through CDARS or a particular CDARS transaction satisfies those restrictions.

MONTANA

WYOMING

IDAHO

WASHINGTON

OREGON

NEVADA

UTAH

CALIFORNIA*

ARIZONA

NORTH DAKOTA

SOUTH DAKOTA

NEBRASKA

COLORADO

NEW MEXICO

TEXAS

OKLAHOMA

KANSAS

ARKANSAS

LOUISIANA

MISSOURI

IOWA

MINNESOTA

WISCONSIN

ILLINOISINDIANA

KENTUCKY

TENNESSEE

MISS

ALABAMAGEORGIA

FLORIDA

SOUTHCAROLINA

NORTH CAROLINA

VIRGINIA

WV

OHIO

MICHIGANNEW YORK

PENN

MARYLAND

DELAWARE

NEWJERSEY

CONNRI

MASS

MAINE

VT

NH

ALASKA

HAWAII

CDARS Enabled

Legislation in the Pipeline

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Becoming a CDARS Member is Easy

Implementation is simple and quick. A four-step process…

Our team provides:

– Financial goal-setting support– Accounting and operations training– Turn-key marketing assistance (including a complementary initial

supply of marketing materials and templates)– On-going support

Set YourBank’s Goals

On-BoardYour Bank

Receive Training

Begin MarketingCDARS

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What is IND?

Insured Network DepositsSM, or INDSM, is a new offering from Promontory that provides banks with a brand new way to acquire stable, wholesale, floating-rate funding. It enables broker-dealers and other financial institutions to offer their customers a multi-bank, FDIC-insured deposit sweep account.

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How IND Works

Funding comes from hundreds of thousands of brokerage account cash balances being “swept” into your bank.

Amounts range from $25 million up to multiple billions of dollars.

Rates are based on a set spread above the daily Federal Funds Effective Rate.

Terms range from 3 to 5 years.

Funding is similar to taking out a multi-year floating rate advance from your Federal Home Loan Bank without the collateralization and stockholding requirements.

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Benefits of IND to Banks

Your bank can receive a cost-effective, stable source of deposit funding from IND.

The overwhelming majority of deposits comes in the form of MMDA balances, which are not subject to reserves.

There is no setup fee.

You account for IND deposits on an omnibus basis.

We handle all the individual records.

You work with an industry leader known for its regulatory experience and emphasis on compliance.

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Founders, Board of Directors, and Bank Advisory Board

Donald G. OgilvieChairman, American Bankers Association InternationalFormer President and CEO, ABA

Warren RudmanPartner, Paul, Weiss, Rifkind, Wharton & GarrisonFormer U.S. Senator

Jeffrey B. SchreierManaging Director, The Bank of New York

L. William SeidmanChief Commentator of CNBC-TVFormer Chairman, FDIC

J. Michael ShepherdPresident & COO, Bank of the West

O. Jay TomsonChairman, First Citizens National Bank, Mason City, IA Former President, Independent Community Bankers of America

Frank G. ZarbChairman, Frank Zarb AssociatesFormer Chairman & CEO, NASD

William Isaac, Chairman, Bank Advisory BoardChairman, The Secura GroupFormer Chairman, FDIC

Eugene A. LudwigChairman & CEOFormer Comptroller of the Currency

Alan S. Blinder Vice ChairmanFormer Vice Chairman of the Board of Governors of the Federal Reserve System

Mark P. JacobsenPresident & COOFormer Chief of Staff of the FDIC and Office of the Comptroller of the Currency

Eugene A. LudwigChairman & CEO, Promontory Interfinancial NetworkFormer Comptroller of the Currency

Anne L. ArmstrongChairman, Executive Committee of the Board of Trustees,Center for Strategic International StudiesFormer U.S. Ambassador to the United Kingdom

Alan S. BlinderVice Chairman, Promontory Interfinancial NetworkFormer Vice Chairman, Federal Reserve Board

James M. CulbersonChairman Emeritus, First National Bank & TrustFormer President, American Bankers Association

Art CertosimoVice Chairman, Promontory Interfinancial NetworkEVP and Head of Broker Dealer Services, The Bank of New York

Kenneth M. DubersteinChairman & CEO, The Duberstein GroupFormer White House Chief of Staff

Mark P. JacobsenPresident & COO, Promontory Interfinancial NetworkFormer Chief of Staff, Comptroller of the Currency and FDIC

Edward W. Kelley, Jr.Former Governor, Federal Reserve Board

Frank N. NewmanChairman & CEO, Shenzhen Development Bank, China Chairman Emeritus, Bankers Trust Company

Board Members & Bank Advisory Board RepresentationFounders

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Contact Information

Promontory Interfinancial Network, LLC

1515 N. Courthouse RoadArlington, VA 22201

1.866.776.6426www.promnetwork.com

For IND specific information, please contact H.D. Barkett,

Managing Director of our Treasury Desk

1.866.776.6426 x 3447hdbarkett@promnetwork.com

Deep SouthKenny Heredia [x3486]

Rocky MountainReg Truman [x3448]

South PlainsLance Caldwell [x3487]

South CentralChuck McBrayer [x3432]

NortheastPhil Pratt [x3485]

Mid-AtlanticErich Buckenmaier [x3354]

South AtlanticDanny Capitel [x3476]

PacificReg Truman [x3448]

South Great LakesMark Martello [x3444]

North PlainsLance Caldwell [x3487]

North Great LakesMark Martello [x3444]

FloridaDanny Capitel [x3476]

AK

HI

MT

WY

ID

WA

OR

NVUT

CA

AZ

ND

SD

NE

CO

NM

TX

OK

KS

AR

LA

MO

IA

MNWI

IL

IN

KY

TN

MS AL GA

FL

SC

NC

VAWV

OH

MINY

PA

MD

DE

NJ

CT RI

MA

ME

VTNH