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Anova® Financial Corporation, a North Carolina-based company
that provides a suite of funding solutions for banks and an Endorsed Partner of
the Texas Bankers Association, announced that it has selected Woodhaven National
Bank of Fort Worth, as its Texas Custodian Bank.
Woodhaven’s role as custodian bank will be to maintain a Master Custody
Account for Anova as agent to various depositors (“Depositors”) and the transfer
of funds from depositors’ bank of origination pursuant to ACH files transmitted
to the Custodian by Anova. These funds are simultaneously ACH transmitted to
time deposit accounts (MMDA or NOW Accounts) established in the name of the
Custodian and Anova for the benefit of various depositors at banks participating
in the Anova program (“Demand Banks”) such that all funds are fully FDIC-insured
at all times during the process.
“Woodhaven was an early adopter of Anova’s program in Texas and with
their familiarity of our services we expect this will be a very strong strategic
relationship that will enable Anova to better service Texas banks and expand
other existing markets,” said Kim Winslow, president and CEO of Anova. “Our
focus has been to keep the money in Texas stimulating local economies and having
a Texas-based custodian will enable us to do just that.”
Woodhaven and Anova began discussions in September and reached an
agreement in late December. Final arrangements have been completed and Woodhaven
is ready to begin providing custodial services as of the first of the New Year.
“We are very pleased to be chosen by Anova to maintain the Master Custody
Account for funds transacted in Texas,” said Sharon Burran, president/COO of
Woodhaven National Bank. “Woodhaven began taking advantage of the Anova product
as an institutional investment and subsequently introduced it to our customers.
The alliance between Anova and Woodhaven keeps Texas funds working in Texas.”
Texas Bankers Association Vice President Wanda Stevens describes the
Anova products as providing benefits to all involved. “It’s hard to imagine an
offering that can so clearly benefit all participants,” she says. “Depositors
receive a higher return on their investments with the complete safety of FDIC
insurance, and Texas community banks acquire additional deposits that they can
turn into quality loans and investments to spur the economies of the communities
they serve.”
In today’s highly competitive environment, banks compete daily for
traditional deposits to expand loan activities while enhancing net interest
margins. With Anova’s alternative ANOVACore® funding solution,
FDIC-insured institutions have immediate access to a steady source of wholesale
funds without typical collateral requirements or credit limits. One master MMDA
deposit account is maintained at each bank in the name of Anova for the benefit
of various depositors, making it very simple for the bank to use and maintain. A
bank CFO simply posts a request for funds and Anova does the rest via ACH.
Banks benefit in numerous ways: a steady, stable source of funds;
competitive fixed rate of interest; enhanced profitability; funds available at
net transaction means no broker or other fees; streamlined process for deposit
gathering and excess cash management; ability to expand lending activities; no
collateral requirements; favorable interest rate risk modeling for Asset
Liability Committee (ALCO); and transaction and holding reporting through a
master account.
In addition, Anova provides banks with excess liquidity, a high yielding
treasury service designed to grow as a bank grows; and through Anova’s
Reciprocal Exchange Deposit Program® bank depositors can stretch
their FDIC Insurance coverage up to $10 million without surety requirements and
the bank has access to reciprocal deposits on a dollar for dollar basis. Both of
these programs offer depositors FDIC insured safety, liquidity, high yields, and
convenience.
For more information about how Anova can help you increase your deposits
and the comfort of your customers call Kim Winslow at 888-266-8293
(1-888-ANOVA-YES) or e-mail him at
kwinslow@anovafinancial.com.
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