Estimating Brokered Certificates | IDC Financial Publishing

As a broker, would you be interested to learn about new banks as potential issuers of brokered CDs? Would it be helpful to see the characteristics of a bank, such as loan to deposit ratio or loan growth, that could be applied to similar institutions?

IDC Financial Publishing, Inc. (IDCFP) has developed a method to estimate the amount of brokered CDs, less than $250,000, issued by banks, using our Deposit Data Base. In the following article, we describe this process and how this information can be used to discover new prospects.

In the first quarter of 2018, IDCFP analyzed all 5,417 banks in its data base and determined which institutions reported brokered deposits, reciprocal deposits and brokered CDs $250K or greater. Subtracting these from the total brokered deposits provides a value of brokered deposits less than $250K and sweep accounts.

In reviewing the quarterly changes in the remaining brokered deposits, as compared to the change in total time deposits, IDCFP is able to isolate the value of total of brokered CDs less than $250K, and the value of sweep accounts, for each bank. Using only banks’ identified with brokered CDs that have a CUSIP number, IDC can estimate the value of these brokered CDs, nearly matching the amount of published DTC brokered CDs outstanding (see Table I).

IDCFP’s estimated value of brokered time deposits less than $250K was $310.4 billion, as of March 31, 2018 (see Table I). This estimate closely matched the Depository Trust Company’s eligible bank brokered deposits valued at $307.5 billion, which also included totals from credit unions and foreign banks and agencies.

From IDCFP’s deposit data base, you can determine:

  • The total amount of estimated brokered time deposits less than $250K (Table II & III, Column 8) and the dollar and percentage change over the last year (Table II & III, Columns 9 and 10) in each domestic bank with or without CUSIPs.
  • The estimated sweep accounts and reported reciprocals and brokered deposits $250K or greater for each bank.
  • Characteristics of domestic banks that issue brokered time deposits with CUSIP IDs can be used to determine other domestic banks as potential issuers. Characteristics for all domestic banks include the loan to deposit ratio, loan growth in dollars and percentages, and other pertinent ratios.

See below samples of this data. For access to all deposit data, please send inquiries to info@idcfp.com or visit www.idcfp.com.

IDCFP has been helping CD brokers and investors, insurance companies, federal agencies, numerous state governments and a host of other institutions make better decisions using its unique and proprietary CAMEL rating methodology since 1985.

For further information or to view our products and services please visit our website at www.idcfp.com or contact us at 800-525-5457 or info@idcfp.com.


John E Rickmeier, CFA

President

jer@idcfp.com

Robin Rickmeier

Marketing Director

IDC Financial Publishing, Inc.

700 Walnut Ridge Drive, Suite 201

PO Box 140

Hartland, WI 53029

P 800-525-5457

P 262-367-7231

F 262-367-6497