Correspondent BankingFederal Funds Program

As a correspondent bank partner, you can take advantage of our experience in the Federal Funds markets.

Federal Funds Investments
First National Bank purchases Federal Funds as principal from correspondent banks with excess liquidity. Fees are not applied, which allows for a greater return on your investment. For the purpose of evaluating interbank liabilities exposure, contact your correspondent banking Relationship Manager for current capital adequacy ratios.

Federal Funds Purchased
First National Bank allows correspondent banks to borrow Federal Funds on a secured basis. Securities are held in safekeeping at First National Bank, and valued at the following levels: 90% of U.S. Treasuries, 80% of U.S. Agencies, and 90% of First National Bank Brokered CD’s, all at par basis. A secured borrowing line may be used 365 consecutive days when appropriate collateral is pledged.

Federal Funds Program Terms
The term of both investments and purchases is daily. Entries for principal and interest amounts are made each day to the correspondent bank account. A confirmation of the transaction is sent via fax to your location. Positions can be changed daily until 3:00 p.m. central time by contacting First National Capital Markets at 800-401-2265. For your convenience, an online change template can be found under First National Capital Markets on the First National Investment Banking web site. First National Bank can also position your account automatically at your request.

Contact a Correspondent Banking Relationship Manager for rates, current capital adequacy ratios, or additional details on the Federal Funds Program.