Maryland State Treasurer’s Office Names Howard Bank A Designated Depository of State Operating Funds
BALTIMORE, MD, March 9, 2020 – Howard Bank, a community-focused commercial bank serving businesses, professionals and individuals in the Greater Baltimore area, has been named a designated depository of state agency operating funds by the Maryland State Treasurer’s office.
Becoming a designated depository enables Howard to bid on State of Maryland deposits as well as situate itself to receive additional municipal deposits. By opening the doors to the government accounts, the bank also will be able to earn the confidence of other prospective large depositors.
“The combination of the designated depository award and inclusion in the reciprocal deposits product network gives Howard Bank a powerful tool to attract more large deposits and fuel growth,” said Drew McKone, Executive Vice President, Chief Deposit Officer. “We are pleased to receive this designation and look forward to working with the state.”
As a designated depository, Howard Bank is required to provide a traditional depository account for a state agency to process payments, accept deposits, provide stop payments, return item notification, overdraft protection and monthly statements. In addition, it must cash checks drawn on the state account for any individual who presents a check without charging a fee, regardless of whether that person has an account at Howard Bank.
The designated depository label coupled with the reciprocal deposit product enhances Howard’s future to secure deposits exceeding $250,000 from customers, such as government agencies and nonprofit entities, that want to safeguard their money with coverage by the Federal Deposit Insurance Corporation. Reciprocal deposits, working through banking networks, allow community banks to provide the federal insurance coverage for these customers who might have taken their business to money-center banks.