Chase, Not Discourage, Core Deposits

I believe in the ABC method - Always Be Chasing - core deposits. Winning core deposits is always a challenge for all the reasons every banker knows. And it's still a challenge in this environment even when competitors are discouraging deposits. We have more depositors who want to move excess balances to us but not the entire core deposit relationship. So we need to take John's advice and make everyday a core deposit growth day. It's hard work.

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John Tyson
CFO/SVP
Altamaha Bank & Trust Company
Vidalia, GA
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Original Message:
Sent: 06-02-2021 11:06
From: Barb Rehm
Subject: Chase, Not Discourage, Core Deposits

Chasing deposits now? Seems silly seeing with banks so flush with deposits. That's why I choose this counter-intuitive story from S&P Global Market Intelligence for your complimentary post this week. It provides a compelling counterargument using a bank – Dallas-based American Bank – to illustrate how and why NOW can be the time to lock in deposits. "We probably are giving up some basis points here and there as we're growing our deposit portfolio, but we really have a long-term view of this," American CEO Jeff Weaver said. "And we want to build those relationships today that are going to be with us a long time."

What do you think? Read the story and let me know if you think now is the time – before loan demand picks up – to be pulling in more core deposits.

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Barb Rehm
Senior Managing Director
IntraFi Network
Arlington VA
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