National Market CDsShay assists de novos with raising funds in the brokered deposit market. Brokered deposits are a valuable and important part of the funding mix of many well-capitalized financial institutions and an efficient, cost-effective means for de novos to diversify their funding mix. Such funding, because it accesses the national market, can be accomplished without disrupting local branch deposit-taking activities and can provide greater flexibility of term and structure than typically is feasible in the local area. Moreover, the cost of collecting and servicing brokered deposits is significantly lower than conventional deposits. Issuers make a single interest payment; Shay Financial Services, Inc. and its affiliate, First Financial Bank & Trust, are responsible for statement generation and tax reporting.
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Shay's CD desk offers two issuance programs for de novos:
• Shay's Custodial Certificate CD Issuance Program is designed for immediate (same day) cash needs that are issued at PAR. It's convenient and efficient way to fund cash needs as small as $100,000 up to $3 million. A simple one-page confirmation is all that is necessary for institutions to issue in this program.
• Shay's DTC CD Issuance Program is designed for institutions seeking to raise at least $1 million or more to meet upcoming anticipated/scheduled funding needs. These funds are issued at a discount to par and require a minimum of 5 business days to settle. Consequently, the cost (rate) for DTC issuance is typically lower than for custodial certificate issuance.