Deposit Base
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Aug 12, 2008 11:05 pm
Does anyone know if there is a guideline/average to the level of production one should do based on (bank side) deposit base, in a bank environment?
Deposit base isn’t nearly as important as branch culture as MOST of the assets you are looking for will be from OUTSIDE the branch.
You’d be amazed how much people keep in a bank checking or savings… I wish I could remember half the customers with over 100k in a single account, beyond the level covered by fdic (no bene’s, no joint owners). Granted the bank I worked at was in an affluent area, but still. I gave the bank rep I worked with some whales.
its based on avg penetration rates of your bank. which is anywhere from 5-10%
for example $100,000,000 branch deposit base X .05 = $5,000,000 then take that # (in this case) $5,000,000 X 2.5%(avg sale gdc based on VA & Fixed inc) = $125,000. hope that helps.