EDC finance review: pledged collateral at Bandera Bank, FDIC coverage explained
Board finance staff explained that Bandera Bank uses pledged collateral (also called a collateral agreement) to cover deposits above FDIC limits; staff said the EDC's accounts are fully covered and will ask the auditor to confirm documentation.
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During the Aug. 18 meeting the EDC received an explanation of how its deposits are secured. Finance presenter Nancy walked the board through reconciliations and explained that Bandera Bank uses pledged collateral to cover amounts above FDIC insurance limits. "The amount pledged plus the FDIC brings us into compliance," she said while noting that pledged balances and CDs together covered the board's deposits.
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