Peninsula Bank engages in the business of providing clearing and custodian services to Deposit Brokers and their clients.  These are typically institutions, which purchase jumbo CDs in the national brokered CD Market.  The division is committed to delivering the highest quality CD clearing and safekeeping services to our deposit brokers and their clients.

In this capacity, Peninsula establishes CDs at FDIC insured institutions through out the country with funds received from the Deposit Broker's clients.  Peninsula takes possession of the CD or evidence thereof and safe keeps those assets.

Peninsula confirms these transactions with the clients and regularly remits interest payments to the clients pursuant to the terms of the investment.  Peninsula also furnishes the clients with statements of their positions and provides year-end tax reporting functions.

Clients execute a Custodian Agreement with Peninsula giving the bank the authority to act upon instructions received from their Deposit Broker and to transact business on their behalf. 

Peninsula Bank entered into this line of business in October of 1997.  It began with one Deposit Broker and ended 1997 with $26 million in assets under its custody. As of June 2003 there are four approved brokers and over $1.7 billion in assets under custody.

AUTHORITY

The following individuals are authorized to transact business on behalf of Peninsula Bank's CD Custody Program:

Simon Portnoy
Chairman of the Board

Sharon Rubin
Executive Vice President

Carlos Sanchez
Vice President

Barbara Hendricks
Safekeeping Supervisor

You may contact the following individuals at Peninsula Bank with any questions relating to the CD Custody program:

Carlos Sanchez
(954) 984-8765 x100

Barbara Hendricks
(954) 984-8765 x129

or e-mail us at cdcustody@peninsulabank.com