StoneCastle Federally Insured Cash Account Program Surpasses $2 Billion In Assets

Institutional investors embrace FICA's safety, liquidity and yield

News provided by

Sep 25, 2012, 10:00 ET

NEW YORK, Sept. 25, 2012 /PRNewswire/ -- StoneCastle Cash Management, LLC (SCCM) announced that its Federally Insured Cash Account program (FICA®), the firm's leading cash management solution has exceeded $2 billion in assets.

Formally launched in 2011, FICA provides institutional investors with access to hundreds of carefully-screened banks via a single account. FICA allocates customers' large deposits across its bank network, ensuring full FDIC insurance on all deposits and allowing depositors to earn competitive yields compared to money market mutual funds, treasury securities and non-insured bank accounts.

"We are pleased to have reached this significant milestone for our FICA program," said Joshua Siegel, Managing Principal of StoneCastle. "Investors have deposited more than $1 billion in FICA so far this year, increasing balances by 100% and bringing our total assets at SCCM across all products to nearly $3 billion."

Siegel said StoneCastle conceived of FICA, with the help of state and federal banking regulators, as a vehicle for community banks to attract institutional deposits without having to deploy additional capital or resources. FICA has become one of the most popular instruments used by treasurers when investing short term balances at banks as highlighted in the 2012 Association for Financial Professionals (AFP) Liquidity Survey.

"FICA provides community banks with a steady stream of reliable institutional deposits and at the same time, allows institutional investors to realize competitive yields with the safety of FDIC insurance," he said.

StoneCastle also recently announced a minority investment by Canadian Imperial Bank of Commerce (CIBC) which joins Charlesbank Capital Partners as equity investors in the firm.

About StoneCastle:

StoneCastle Partners, LLC ("StoneCastle", www.stonecastlepartners.com) was founded in 2003 and is one of the largest managers of investment funds and providers of advisory services dedicated to the U.S. community banking sector. StoneCastle was founded with a mission to help ensure a strong and healthy community banking sector. Its history of developing innovative investment structures and deposit solutions has made it one of the most respected financial organizations and largest investors in community banks. Collectively, StoneCastle and its principals have provided over $5.5 billion of capital to over 430 community banks in the U.S. and have established 400+ deposit relationships that provide stable deposit funding to community banks through StoneCastle Cash Management, LLC and its FICA product.

StoneCastle Cash Management, LLC, an affiliate of StoneCastle Partners LLC, is an investment adviser registered with the US Securities and Exchange Commission. For more information regarding the firm, please see its Form ADV Parts 1 and 2A on file with the SEC. Registration with the SEC does not imply a particular level of skill or training.

FICA ® is a service mark of StoneCastle Cash Management, LLC.

SOURCE StoneCastle Cash Management, LLC