Dynamic Source for Flexible Funding
Many community banks are experiencing strong performance and see opportunities to grow even faster.
One of the biggest challenges is the consistent need to increase deposits. Without a way to generate
new deposits in a cost effective and easy-to-process manner, community banks are unable to meet future
lending needs and increase bottom line performance.
New Source of Flexible Funding
The Capital Market CD program (CMCD) is a dynamic funding solution. The program is a straight-
forward, unique and efficient way to raise money from the capital markets to deliver a new, fresh
source of deposits to community banks.
Valuable Funding Advantages
The Capital Market CD program provides Community Bankers with:
• Lower Total Funding Costs – no collateral costs, no stock purchase, no annual fees, no
costly audits
• Efficient Funding Source - funding generated directly from the capital markets, not local
deposits. Ability to systematically “Ladder in” intermediate term deposits (2-5 years) helping stabilize the funding base, extend
liabilities and reduce interest rate risk
• Easy to Use and Administer - all CDs issued in book entry form and interest payments transmitted through ACH, making the
program efficient and easy to administer
Capital Market CD Highlights
Lower Funding Costs
Cost Effective Agency +50 No No annual fee to participate
CMCD rate is based on the 3 year Treasury rate. rate.annual fee to participate
No Collateral Collateral freed up for other funding needs
Reduce Interest Rate Risk Extend liabilities to reduce interest rate risk
Enrollment Costs No enrollment costs, no extra fees
Efficient Funding Source
Funding Levels From $100,000 per month
Up to 1 to 5 million a week. You choose the weeks you want to participate.
Intermediate Term Deposits 3 year funding solution
FDIC FDIC has opined positively on the program
Easy to Use and Administer
Easy to Use, Less All CDs issued in book entry form, no paper certificates and ACH used to transmit
Administration interest payments
No subscription fees, no rate sensitive deposits, no early redemption, no signature card
No Hassle
or 1099’s required
State Endorsed and
State Banking Associations endorsing and helping sponsor the program
Sponsorship
Capital Market CD Delivers Fresh Capital Market Funding
Limited Liability Corporations
The Capital Market CD program creates customers for your bank
by forming individual Limited Liability Corporations (LLC) to buy
Certificates of Deposits (CDs)
Notes Sold to Capital Market
The LLC creates and sells a note to the capital markets, which is secured
with the CD from your bank
Buy Certificates of Deposits from Banks
The money from the notes is used to buy CDs from individual banks.
The CMCD program does not lend money to the bank, a CD is
purchased from the bank
FDIC Insured and AAA Rates
The CD is insured by the FDIC. The note carries a AAA Fitch and S&P
rating, allowing us to raise money at AAA rates
FDIC
Each purchased CD is fully insured up to $100,000. FDIC requires each
issuance to have a minimum of 100 banks partcipating in the issue.
Enrollment & Funding Process
Enrollment Enrollment completed one time by signing returning a three part program agreement
Enrollment completed one time by signing and and returning applicable agreement
Placing Funding Order Sign up for the specific weeks and amounts for weekly Capital Market CD issue
Funding Activiation Funds sent to your bank each week via wire transfer
Confirmation Confirmations available online
Confirmation sent with each weekly issue
Reporting Requirements Accounting and holdings reports published via the IPFS web site
Interest Payments Remitted ACH on semi-annual basis
Remitted to Wilmington Trust via ACH on semi-annual basis
Community Bank Funding Company
The Capital Market CD was created by Community Bank Funding Company, based in Aurora, Colorado
that originated the idea for capital market funding and has a patent on the process. Community Bank
Funding Company has partnered with Republic Financial Corporation, a 35 year old financial investment
company to provide strong service and reliability. Both companies are committed to providing an
innovative and reliable source of funding for community financial organizations.
For more information contact Community Bank Funding Company
3300 S. Parker Road, Suite 315, Aurora, Colorado 80014
Phone 800.483.6835
Fax 303.923.2249
Email info@cbankfunding.com
www.cbankfunding.com