ICBA News Release
ICBA Director of Communications
Daniel P. Clancy
ICBA Director of Services
FOR IMMEDIATE RELEASE
ICBA Enters Alliance with Promontory Interfinancial Network
San Antonio, Texas (March 8, 2005) - The Independent Community Bankers Association of America (ICBA) today announced that it had entered into a cooperative alliance with Promontory Interfinancial Network to market the network's premier service, CDARS, to ICBA members.
With CDARS, community banks can offer a customer up to $10 million in FDIC coverage. Under the terms of the arrangement, ICBA members periodically will be eligible for favorable pricing when joining the Promontory Interfinancial Network. The association and the network will also work jointly to inform ICBA members how using CDARS can benefit them.
"Promontory Interfinancial has shown that it can deliver consistent and significant value to our members," said Camden R. Fine, ICBA president and CEO. "As interest rates continue to rise, community banks will increasingly need alternative sources of funding-and CDARS will be there for them."
"Our service was designed with community bankers in mind," said Gene Ludwig, chairman and CEO of Promontory Interfinancial. "The largest financial service provider in the country cannot provide anything better than CDARS. There are few guarantees in life-FDIC insurance is one of them."
The cooperative alliance was announced to community bankers attending ICBA's annual National Convention.
To offer CDARS, a bank must belong to the Promontory Interfinancial Network, a network of more than 750 banks nationwide. Here's how the network works: A customer places deposits through a single member bank. Through a sophisticated computerized matching service, the customer's funds are divided into CDs of less than $100,000-to ensure that both the principal and interest are fully protected under FDIC insurance-issued by other banks in the network. From a customer's point of view, it is one-stop shopping: one banking relationship, one statement, and one interest rate.
Based in Arlington, Va., the Promontory Interfinancial Network was founded in 2002 by former comptroller of the currency Eugene Ludwig and other leading figures in the banking industry to develop and provide creative solutions for issues confronting bank management.