Letter from the National Bank InterDeposit Company (NBID) Board of Directors

We represent the Board of Directors of the National Bank InterDeposit Company (NBID), a bank-owned and bank-managed deposit network. NBID was formed to ensure that banks have oversight and alignment over their critical reciprocal deposit infrastructure, which has become vital to so many over the past years. As you know, reciprocal deposits allow institutions of any size to serve large-balance customers, and, in doing so, ensure our country can continue to support a vibrant and diverse banking sector. The value of these networks are the banks themselves; NBID ensures that member banks benefit from the networks they power.

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NBID provides deposit network services to its member banks, including reciprocal deposits, deposit sweeping, and deposit funding. Member banks receive:

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1. Preferential pricing on deposits in network, currently near 4 bps, driving large savings for early members
2. Profit share from the Company in proportion to their usage
3. Power to vote and serve on the Board to steward the direction and oversee the operations of the Company
4. Ownership in a network that is aligned with its bank shareholders, maintains financial strength by holding no leverage, and lobbies for bank initiatives
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Since its inception earlier this year, NBID has grown quickly to include institutions representing the majority of the reciprocal deposit market by volume. Key metrics include:

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• Over 225 members, with 10 new banks joining a week on average. NBID’s latest bank list can be found at nbid.com/bank-list
• Over 400 banks committed to NBID and finalizing contracting. These banks represent $201 billion in reciprocal deposit volume, 51% of the market
• Freedom-to-join from the OCC. This was granted in August, after which the network officially went live

We are committed to delivering on the promise of NBID for our member institutions as we deeply believe that a bank-owned model is the ideal structure for what has become a systemically-important financial market utility. We would encourage you to evaluate NBID, and, if it meets your priorities, join the coalition to improve your economics, long-term resiliency, and ensure true alignment with your institution.

Please reach out to NBID at nbid.com, contact@nbid.com, or (332) 333-1069 to get in touch.

Sincerely,
The NBID Board of Directors