Capital Markets School - Case Study

FUNDING SOURCES Available funding sources are detailed below. These items will be prioritized in a later section. Asset side sources of funds 1. Cash and due from banks

2. Federal funds sold and repurchase agreements 3. Investment portfolio maturities, cash flow, or sales 4. Loan portfolio maturities, cash flow, or sales Liability side sources of funds 1. Deposit increases a. Core deposits

i. Institute an “in market” deposit solicitation program ii. Issue internet deposits

b. Public funds c. Large depositors 2. Wholesale funding increases

a. Federal funds purchased and repurchase agreements b. Federal Home Loan Bank advances c. Federal Reserve Bank advances i. Primary Credit Facility

ii. Secondary Credit Facility iii. Seasonal Lending Program d. Brokered and rate sensitive deposits

3. After tax earnings 4. Draw on parent company lines of credit 5. Capital raises by parent company

Page 7 Smith Shellnut Wilson, LLC  Investment Counsel and Management  SEC Registered Investment Advisor 661 Sunnybrook Rd., Suite 130  Ridgeland, MS 39157  Telephone 601-605-1776  Fax 601-605-1710