ABA-Endorsed Capital Management &
Funding Solutions

Helping banks to deal with capital management and liquidity challenges is one of ABA's top priorities. The Corporation for American Banking (CAB) offers these programs to help bankers meet and overcome funding challenges.

<ABA Pooled Trust Preferred Securities Program
by FTN Financial Capital Markets and Keefe, Bruyette & Woods

With pooled Trust Preferred Securities (TPS), bank holding companies can raise tax-deductible Tier 1 capital* while avoiding shareholder dilution. FTN Financial/KBW is the market leader in issuing pooled TPS, having raised over $19 billion in capital for over 1,700 participating financial institutions. The program eligibility criteria include banks with assets between $50 million and $100 million on a limited basis (participants in this asset range must have a minimum of 10 years' operating history to be considered for underwriting). In addition, FTN Financial/KBW offers reduced set-up and administrative costs—making this an extremely attractive opportunity to boost your bank's bottom line.

The Pooled Trust Preferred Securities Program of FTN Financial and KBW is endorsed by the American Bankers Association, through its affiliate, the Corporation for American Banking and its subsidiary ACB Business Services, LLC a licensed broker/dealer and member of FINRA. 

For more information, click here or contact:

Robin Gordon, Tel: (202) 663-5128
Email: rgordon@aba.com

Helen Sullivan, Tel: (202) 663-5167 
E-mail: hsulliva@aba.com

*On March 1, 2005, the Federal Reserve issued its long-awaited final rule preserving the regulatory capital treatment of TPS.  Under the final rule, holding companies may continue to include TPS in Tier 1 Capital up to 25% of the sum of core capital elements (including TPS), provided that after the end of a transition period (effective March 31, 2009), institutions would be required to net goodwill (less any associated deferred tax liability) from this calculation. The amount of trust preferred securities in excess of the limit are included in Tier 2 capital.
 

<CDARS^® and IND^®
by Promontory Interfinancial Network, LLC

Promontory Interfinancial Network, LLC ("Promontory") provides creative solutions that help banks and other financial institutions to compete more effectively.  The company currently offers two well-established services— Certificate of Deposit Account Registry Service^®, CDARS^®, and Insured Network Deposits^SM, IND^®.  As a member of the Promontory Network, your bank can use one or both of these ABA-endorsed services to:

• Offer full FDIC coverage on multi-million dollar investments which encourages customers to consolidate their investments through your institution.  This can help your bank not only to attract new deposits, but also to expand market share, enhance customer loyalty, cross-sell other services, and reduce collateralization cost.
• Earn fee income by selling "excess" deposits.  You can attract new customer deposits and take these funds off your balance sheet by selling "excess" deposits to institutions that need funds while maintaining complete ownership of the customer relationship.
• Access fixed or floating rate funding without collateralization requirements or administrative hassles.

Click here for more information.