CASH MANAGEMENT · BROKERED CDS
Brokered Certificates of Deposit (CDs)
Managing liquidity is about having the right tools available when you need them. Many community financial institutions (CFIs) look for ways to increase funding or use extra cash without making things more complicated.
PCBB works with a nationwide broker-dealer partner to facilitate brokered certificates of deposit, giving your institution access to both sides of that equation. You can issue brokered CDs to support funding needs or invest excess cash in FDIC-insured CDs across a range of maturities.
Executive Summary
PCBB helps community financial institutions (CFI) issue brokered certificates of deposit (CDs) or invest in high-quality, brokered CDs through a nationwide broker-dealer partner. These CDs are FDIC-insured and available with maturities ranging from 1 month to over 30 years. CFIs can leverage brokered CDs as a low-cost reliable deposit source or deploy excess cash through their securities portfolio.
Two Ways Brokered CD Issuance Works Through PCBB
When CFIs consider brokered CDs, they often want to know how the process works and how quickly they can acquire funding.
PCBB works with a nationwide broker-dealer partner to help your institution increase liquidity or invest excess cash in FDIC-insured CDs. We make it easier for your institution to move quickly and effectively, without extra work for your team.
You select the terms that are most suitable for your funding needs, and the broker handles execution and distribution.
The Process: Issuing CDs
Issuing brokered certificates of deposit with PCBB gives your bank flexible funding that supports your balance sheet strategy while diversifying brokered deposits. Access a broad investor base without managing distribution, and benefit from FDIC-insured funds, no collateral requirements, fixed rates for cost certainty, and settlement timing aligned to your liquidity needs.
Options can include:
- Fixed-coupon bullets
- Fixed-coupon callable, issuer owns the right to call the CD
- Step-up coupon callable
How Brokered CDs Work
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You choose the maturity and structure (i.e., fixed coupon bullet, fixed coupon callable, or step up)
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You execute terms agreement with our broker and enter the offering period
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Our broker handles execution and wires funds to your institution on the settlement date
The Process: Investing Excess Cash
Brokered CDs can also be used on the investment side when your institution has excess liquidity to deploy.
Through PCBB’s broker-dealer partner, your team can access FDIC-insured CDs across a wide range of maturities, from short-term positions to longer-term placements that align with your portfolio strategy.
This allows your institution to generate yield on available cash while maintaining flexibility in how funds are managed over time.
Your Broker-Dealer Partner
PCBB works with a nationwide broker dealer that has more than 35 years of market experience. The firm has managed over $1 trillion in trades primarily with high quality accounts, including state/local governments, second and third tier asset managers, as well as minority-owned money managers. Our partner has a strong capital base with over $10 million of net capital solely dedicated to underwriting.
Through this partnership, your institution can take advantage of established distribution channels and receive execution support along the way.
Brokered Certificate of Deposit (CDs) in the Regulatory Landscape
Brokered CDs issued or purchased through a third-party broker-dealer must follow FDIC regulations under Section 29 of the FDI Act regarding capital levels, acceptance restrictions, and reporting requirements.
PCBB works with a nationwide broker-dealer partner who understands these rules and supports compliant issuance. For full regulatory details, CFIs can check the FDIC Banker Resource Center.
They always have a good feel for the market and do whatever it takes to secure funding at the lowest cost for my institution. They are genuine, honest, and very responsive. And, their willingness to go the extra mile on my behalf is what makes this partner my go to source for brokered funding.
Get Started with Brokered CDs
If your institution is considering brokered CDs for funding or investment, the next step is to assess how issuing or buying them fits within your current operations and liquidity strategy.
PCBB and our broker-dealer can guide your team through the available structures, timelines, and funding options, helping you determine how brokered CDs can support your overall approach. This includes discussing different maturity choices, rate options, and how the process works.
Frequently Asked Questions
In simple terms, brokered deposits are CDs issued by a community financial institution (CFI) and distributed to investors through a broker-dealer. PCBB helps facilitate that process, giving CFIs a way to raise capital or invest excess cash without building their own distribution network.
Yes, they are. Brokered CDs are FDIC insured up to applicable limits, which provides a level of protection while still allowing CFIs to use them as a funding or investment tool.
Maturity options can be structured from as short as one month to more than 30 years, depending on how your institution wants to align funding or investment decisions with balance sheet needs.
Yes. Your institution must meet specific regulatory requirements to issue brokered CDs, primarily based on FDIC capital adequacy standards. A well-capitalized institution can generally accept or renew brokered deposits without restriction, while an adequately capitalized institution must obtain FDIC approval, and an undercapitalized institution is typically prohibited from accepting them. PCBB works with its broker-dealer partner to help ensure your institution meets applicable requirements.
Most CFIs choose among a few common options:
- Fixed-coupon bullet: Pays a fixed rate for the full term, with no early redemption option — held to maturity.
- Fixed-coupon callable: Pays a fixed rate, but the issuer holds the right to redeem it before maturity.
- Step-up coupon callable: Callable CD with a coupon rate that increases over the term.
The right option usually comes down to how you want to handle rate exposure and timing.
Once the offering period wraps up, funding is typically received on the settlement date. The exact timing can vary depending on the structure and market conditions, but the process is designed to move efficiently.
Payment timing depends on the structure you select. In some cases, interest is paid periodically. In others, it is paid at maturity based on the agreed terms.
When a CD reaches maturity, funds are returned to the CFI or investor. From there, they can be reinvested or allocated elsewhere depending on current needs.
Regulators monitor brokered deposit concentrations closely. Undue reliance on brokered deposits can trigger regulatory scrutiny or be viewed as an unsafe and unsound funding practice. Rate sensitivity, capital requirements, and balance sheet liquidity strategy are all factors CFIs need to weigh when using brokered funding.
Yes, through secondary markets, though pricing may be unfavorable if rates have changed.
Only if the CD has a callable structure. Callable brokered CDs allow the issuing CFI to redeem the CD before maturity, typically after a no-call period. This provides rate flexibility but usually requires paying investors a higher rate. Fixed-coupon and step-up CDs without call features must be held to maturity.