Tuesday Topic: Deploying Deposits

That is the million dollar question in banking right now - how to deploy the extra deposits.  

I have spoken to bankers who are out pushing for new loans, others who are buying up securities, and yet others who are just holding cash.

The key is how to keep the net interest margin up!

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David Lester
Cashier & Security Officer
City State Bank
Norwalk IA
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Original Message:
Sent: 09-07-2020 12:33
From: Barb Rehm
Subject: Tuesday Topic: Deploying Deposits

Over the past 12 months, total deposits at U.S. banks rose by $2.9 trillion, led by the increase of $2.4 trillion in the first half of 2020, according to the FDIC's Quarterly Banking Profile. Almost $3 trillion! So today's topic asks how you are dealing with the extra liquidity? One small business owner told us his bank put some of its extra deposits in his account, creating a sort of line of credit. If the business owner tapped it, the money became a loan. Would you be willing to share with the Peer Intelligence community the creative ways you've found to deploy deposits?

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Barb Rehm
Senior Managing Director
Promontory Interfinancial Network, LLC
Arlington VA
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