What are current bank strategies to maintain a low cost of funds?

​Brady,
Although we will appropriately adjust our rates with the market, our efforts are geared more towards the sales and business development of a broader base of new core customers.  We acknowledge our cost of funds will increase and that a certain segment of our existing CD customer base will be lost as rates accelerate over the next 24 months, but we have forecasted this event.  Now we are working extremely hard to shift the profile of our deposit base as the rising rates/market competition variables are essentially out of our control.

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Stephen Haggard
President & CEO
Metro Phoenix Bank
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Original Message:
Sent: 04-13-2018 12:06
From: Brady Nachtrieb
Subject: What are current bank strategies to maintain a low cost of funds?

Obviously, rates are on the rise, and I would like to hear any strategies other community banks are using to offset the rising interest costs to try to maintain a low funding cost, as well as strategies that have been employed with Promontory to achieve this goal?

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Brady Nachtrieb
CFO
Stockmens Bank
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