Pub. 6 2016-2017 Issue 3

14 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S FEATURE ARTICLE GLENN MARTIN REGIONAL DIRECTOR PROMONTORY INTERFINANCIAL NETWORK How One Bank Increased the Profitability of Public Fund Deposits While Giving Customers More Set your goals through a strategic plan with your board and Sr. Management team, and inform your regulators as to your plans. D eposits from public funds are becoming an increasingly important source of fund - ing for many community banks as more government entities have been moving their deposits out of the country’s largest banks—a result of new LCR requirements affecting large in - stitutions. At the end of Q4 2015, more than half of the deposits from Federal, state, and local gov - ernment entities were placed in banks with fewer than $50 billion in assets. In addition, between Q4 2014 and Q4 2015, public fund deposits at banks with assets fewer than $50 billion grew by 11%. 1 Public Fund Deposits Held at Banks Based on Asset Size