We allow each branch some latitude in setting their own CD rates, but by and large, we collectively manage the process through our Asset and Liability Committee. It is the responsibility of the Committee to analyze all aspects of the bank’s balance sheet and try to match up both the rates paid on CDs and rates earned on loans and bank investments.

The difference between those rates is calculated as a spread, more commonly referred to as our margin. The bank’s margin is what ultimately drives earnings, which are in turn evaluated by regulators and shareholders. In short, we try to strike a balance between a fair return to depositors and meeting required and expected earnings for the bank.