Depository Institutions

FICA® Funding

Developed in response to the funding needs of depository institutions, the FICA® Funding Network provides banks access to the $3 trillion institutional cash market via high-quality institutional deposits. Through our network, an institution may easily acquire cost effective funding to meet unique balance sheet needs.

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How It Works

Institutional Cash Account (ICA®)

StoneCastle Cash Management’s Institutional Cash Account (ICA®) provides funding to banks through operating and core cash portfolios of Fortune 500 corporations, colleges and universities, endowments and foundations, and public funds. StoneCastle provides cash and liquidity solutions to more than 1,600 of these institutional relationships that are constantly seeking ways to diversify their treasury cash balances, typically through banking relationships. ICA® enables banks to compete for these large dollar deposits from source organizations and entities to which they may not otherwise have had access.

Ideal for banks that are larger than $2.5 billion in assets.

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Cash Sweep Funding

StoneCastle provides billions of dollars in deposit funding to financial institutions of all sizes and maintains relationships with more than 800 banks across the United States. Through diverse, reliable, and stable funding programs, bankers can gain easy access to multiple sources of funds that can be used to grow local communities, diversify funding sources, create and supplement contingency funding plans, and potentially lower overall cost of funds.

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Bulk Insured Deposit Services (BIDS)

StoneCastle Cash Management’s Bulk Insured Deposit Services (BIDS) sources term funding (typically 1-7 years) for banks from non-depository administrators such as employee benefit and health plans. The funding is typically large deposits between $50 million and $500 million and is comprised of thousands or even hundreds of thousands of benefit plan holders.

The favorable classification of deposits under Federal Regulation 12 C.F.R § 337.6 combined with the stable, granular nature of the funding can help to provide stability to banks’ books while introducing them to a large and diverse depositor base.

Ideal for banks that are larger than $2.5 billion in assets.

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FICA® | For Banks

FICA® | For Banks is a simple expanded multimillion-dollar FDIC insurance vehicle and powerful balance sheet liquidity tool that enables you to earn fee-based income on your low-margin deposits. With FICA® | For Banks, you retain the client relationship, control your balance sheet needs and earn fee-based income—all at zero cost to your institution.

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Benefits For Your Institution

  • Balance Sheet Liquidity

    Increase balance sheet liquidity and free-up pledged collateral by allocating your large depositor balances throughout our funding network.

  • Retain Your Customer Relationships

    With FICA® | For Banks, you remain in control of the relationship with your customer.

  • Expanded FDIC Insurance

    Your customers benefit from the ability to secure multimillion-dollar federally backed deposit insurance, next-day liquidity and a competitive yield on their deposits.

StoneCastle Financial Corp.

StoneCastle Financial Corp. (NASDAQ: BANX), an ABA-endorsed solution, enables you to gain the capital your bank needs to grow organically, acquire banks, branches or assets, repurchase shares, or provide your investors with liquidity. Developed in response to the challenges smaller banks face in obtaining permanent, cost efficient capital, StoneCastle Financial is a passive, long-term, direct-bank investor. We are also the first public investment company specifically established to invest in healthy banks.

Our Source of Capital

  • Competitively Priced

    Our capital solutions provide community banks with access to Tier 1 and Tier 2 capital at “capital markets” pricing typically available only to larger publicly traded banks.

  • Pooled Subordinated Debt

    To further reduce the cost of capital for banks, StoneCastle acts as an arranger to facilitate bank credit collateralized loan securitizations. On October 15, 2015, StoneCastle facilitated the financing of 35 community banks amounting to $250 million.

  • Experienced Investors

    We have been investing in community banks for more than 12 years and have a proven track record with management closing 250+ bank capital investments totaling $3.7 billion prior to the formation of StoneCastle and 230+ bank capital investments totaling $2.5 billion thereafter.

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