Principle & Agent Federal Funds

Principal Federal Funds remain invested at ACBB. Through our Agent Federal Funds program your bank can diversify its risk among several high quality banks. Our program does the transfer and allocations. Your bank receives financial information on these high quality banks from ACBB, which is updated quarterly. In addition, ACBB provides all quarterly financial information required by Regulation F.

  • Safety highly rated, credit worthy banks
  • Diversification between up to 50 agent banks
  • No sacrifice in rates paid for diversification
  • Updates on agent financials
  • Only one bank to deal with – ACBB
  • Paid average daily rate
  • Investment Increments as low as $1,000
  • Daily advice

Federal Funds Borrowing Facility

ACBB provides Federal Funds lines for overnight liquidity purposes. We offer Federal Funds Borrowing Facilities (“FFBF”) to respondent banks for the sale of federal funds, on either an unsecured or secured basis, or a combination of unsecured and secured. All borrowings are due and payable in full the next business day after the borrowing transaction.

  • Unsecured facilities can be used for periods of up to fourteen (14) consecutive calendar days
  • Secured facilities can be used for periods of up to one hundred eighty (180) calendar days and must be secured by investments ACBB has in safekeeping for the respondent bank
  • Must be, or become, an ACBB shareholder
  • Collateral is held in safekeeping with ACBB and typically consists of Government Treasuries or Government-sponsored mortgage backed securities.

Excess Balance Account

We offer EBAs (Excess Balance Accounts) to our respondent banks, providing them the ability to utilize ACBB as an agent bank for the Federal Reserve Excess Balances. This is an alternative overnight investment option for your institution and carries a zero risk weighting. Interest is paid daily on your investment as opposed to the interest paid on average balance in a reserve period.

ACBB Investments

ACBB Investments is proud to bring customers a full suite of investment products designed specifically for community banks. Through our partnership with the Capital Markets Division of First National Bankers’ Bank (FNBB), ACBB offers the following investment products:

  • Safekeeping Services
  • Portfolio Accounting
  • Asset/Liability Management
  • Security and Bond Purchases

Contact us to learn more.