idb bank annual report 2014 - janet l. falk · clients, invested in technology, improved our...

IDB BankAnnual Report2014

It’s understanding the goals of our private and business clients and helping to achieve them. It’s banking done the right way for the last 60 years. It’s being more than a bank; it’s being a financial partner who is a close confidant to our clients.

IDB, it’s personal.

1

04 INTRODUCTION

08 REPORTOFTHEBOARDOFDIRECTORS

10 FINANCIALS

14 U.S.PRIVATEBANKING Investment Management

& Trust

18 INTERNATIONALPRIVATEBANKING

20 LENDINGDIVISION Corporate Lending

Factoring

Commercial Real Estate

Asset Based Lending

30 SOUTHERNCALIFORNIA

32 SOUTHFLORIDA

34 TREASURY Foreign Exchange &

Interest Rate Derivatives

38 CASHMANAGEMENT

40 IDBCAPITAL

Leadership

Services

3

Leadership04 INTRODUCTION

08 REPORTOFTHEBOARDOFDIRECTORS

10 FINANCIALS

IDB Bank Annual Report 2014

2

LEADERSHIP

4 5


ourmarkets;wehavealoyalclientbase,fromwhichwederiveaconsiderable

portionofournewbusinessandnewcustomerreferrals.Wetreasureand

cultivatetheselong-standingrelationshipsaswecontinuetoattractnewclients

whodesireamorepersonalapproachtobanking.

WeareespeciallyproudthatourNot-for-ProfitandHealthcaregroup,whichwas

establishedin2012,hasalreadybeenrecognizedasoneoftheleadersinthat

sector.Itisasignificantachievementforarecentventuretoreachtheseheights

inahighlycompetitivemarketplace,duringaperiodoflowinterestrates.

OurLendingDivision,whichincludestheCorporate,FactoringandAssetBased

Lendinggroups,alsohadasuperbyear.Newclientsarealwayswelcome,and

somehaveintroducedustonewindustriesthatdiversifyourmixofloans.We

stayedthecoursewiththeseclients,someofwhomwereweatheringoperational

andfinancialchallengesanddisruptionsintheirmarkets.NowthattheNew

Yorkandnationaleconomieshaveregainedtheirfooting,thetidehasturnedfor

thesecompanies,andtheyaregearedupforrecoveryandevenexpansion.

TheRealEstategroupisperformingwell.Wehaveprovidedourclients

withcreativefinancialsolutionsforeventhemostcomplexrealestatedeals.

WeanticipategrowthintheNewYork,NewJersey,LosAngelesandFlorida

realestatemarkets,andourgoalistoaccommodateclientsthatareactivein

thesemarkets.

Intheinternationaltrademarkets,weareoneofthetop50banksintheUnited

StatesinissuingLettersofCredit.Thiswillcontinuetobeanimportantpartof

ouractivity.

Ehud ArnonPresident & Chief Executive Officer

Jacob BermanChairman of the Board

LEADERSHIP Introduction

From customized investment strategies in

private banking to individualized business

loans, IDB Bank looks beyond the numbers

to cultivate close personal relationships with

our clients. 2014 was no exception, with

contributions from the dedicated teams

throughout the Bank.

Webroughtinnewclients,strengthenedourrelationshipswithlong-time

customers,addednewproductstoserveourbusinessandprivatebanking

clients,investedintechnology,improvedourcustomer-facingonlineservices

andstrengthenedourbalancesheet.

Weserveourclientsbestbyprovidingthemwithaccesstofundsandproducts

thatwillfueltheirbusinesssuccessandpreserveandincreasetheirwealthfor

thenextgeneration.Wewillnotventureintounfamiliarproductsandservices,

nomatterhowalluringtheprospectofadditionalyieldthatcomeswithhigher

risk.AtIDB,weactivelypursuesolutionsthatmeetourclients’needs,amidan

economicenvironmentcharacterizedbyuncertainty.

2014representsayearofsignificantgrowth,astrongloanbookandincreased

income.Oursisanenterprisethatisuniquecomparedtootherbanks.Weknow

Introduction

6 7

WeareoptimisticabouttheU.S.economy,particularlyinthemarkets

whereweoperate:NewYork,NewJersey,FloridaandCalifornia.Wehave

anaggressiveandachievablefive-yearplanforgrowthandexpansion.Wewill

domoreofwhatwedoeveryday,andwhatwedobest:serveourclientswith

anexcellentplatform,maintainastrongcapitalbaseandretainouroutstanding

professionalstaff.

WeinviteyoutobecomebetteracquaintedwithIDBandourbusinessunitsthat,

together,havecontributedtoahighlyproductiveyear.Whetheryouareaclientof

longstandingorareconsideringhowourfull-servicebankmayhelpyouaddress

yourfinancingandinvestmentneeds,wethankyouforyourinterestinIDBBank.

Asafinalcomment,ourChairmanoftheBoard,Mr.MichaelGoldstein,stepped

downfromhisposition.Wewishtothankhimforhiscontributionstothegrowth

oftheBankandhisyearsofoutstandingservice.

JacobBerman

EhudArnon


Whether you are a client of long standing or are

considering how our full-service bank may help you

address your financing and investment needs, we

thank you for your interest in IDB Bank.

IntroductionLEADERSHIP

Bycontinuingtoinvestinonlineapplications,weaimtoprovideourclients

withsuperiorservices,suchastraditionalandelectronicplatformstomonitor

theirloananddepositaryactivity,cashmanagementandothermeanstoreview

tradingactivitiesandportfolios.

Recentstrategicdecisionsandcontinuingrealignmenthaveresultedinaneven

strongerbalancesheet,whichhasasubstantialcorecapitalbase.Withthehigh

creditqualityofourloanbook,wehaveoneofthelowestnon-performingloan

ratiosamongourpeers.

Aswasnotedlastyear,wehavefocusedonourcoreactivitiesanddecidedto

sellDiscountBankofLatinAmerica,ourretail-orientedsubsidiaryinUruguay,

asitnolongeralignswithourstrategicvision.Thesaleagreementwassigned

attheendof2014andisexpectedtobeconsummatedin2015.Anotherdecision

ofbottom-lineconsequencewasthesaleofourentireTrustPreferredSecurities

(TRUPS)portfolio.Excludingthesetwotransactions,whichwerebothataloss,

2014wouldhavebeenarecordyearfortheBank,withanadjustednetincomeof

$58.6million.

We will do more of what we do every day, and

what we do best: serve our clients with an excellent

platform, maintain a strong capital base and retain

our outstanding professional staff.

8

LEADERSHIP Report of the Board of Directors

Report of the Board of Directors

Thisyearwecontinuedtopursuemarket

opportunitiesasastrongerU.S.economyhelped

manyofourcustomersregainmomentumand

growtheirbusinesses.Wesupportedtheirgrowth

byofferingthemahostoffinancingand

investmentsolutions.

IDBperformedexceedinglywellin2014.Loans

reachedarecordlevel,andnewproductsweremade

availabletoourcustomers.Thebalancesheethad

almost$10billionofassetsandastrongcapital

base,consistingmostlyofcoreTierOnecapital.

TheBankreducedlegacyissuesandimproved

creditquality(whichisthehighestamongour

peers).Wepursuedefficienciesinourworkflows,

movedtoateamstructureinallbusinessareas

andimprovedcustomer-facingtools.Weshowed

stabilityofincome,despitethelowinterestrate

environmentandcontinuedtoincreaseearning

power,whilemaintaininghighliquidityandstrong

capitalratios.

IDBBank’s2014netincometotaled$22.4million.

Excludingonetimeeventsthatincludelossesfrom

thesaleofoursubsidiaryinUruguay,DBLA,and

thesaleofourentireTrustPreferredportfolio,our

netincomewouldhavebeenarecord$58.6million.

Theseonetimeexpenseswillserveusinthecoming

yearsaswestrivetobecomemoreprofitableand

capitalefficient.

IDBisfocusedontwonichemarkets:private

bankingfordomesticandinternationalclients’

andlendingtomiddle-marketcompanies.Our

customerbaseisveryloyal;manyofourborrowers

arefamily-runbusinesseswhere,overtime,we

developclosepersonalrelationshipswiththefounders

andthenextgeneration,and,insomecases,even

athirdgeneration.

In2014,weaddednewproductsthathavehad

apositiveimpactonourgrowthandretentionof

clients,includinginsuranceandspecialinvestment

vehiclesforprivatebankingclientsaswellassome

additionalcashmanagementservicesforcorporate

customers.Wecontinuetoenhanceourcustomer-

facingtoolsandimproveourtechnologysystemsto

supportourgrowth.Thisyearwealsorevampedour

website,whichforthefirsttimeincludescustomer

testimonialsandmobileoptimization.

Wecontinuetoemphasizeastrongcompliance

culture,whichiswell-rootedinourorganization,

andweremaincommittedtohighlevelsofcyber

security.Thesemeasureshelpprotectourclients

againstidentitytheftandalsopermitourprofessionals

toscrutinizeattemptsatunauthorizedactivity.

Followingtheleadofourparentcompany,we

exceedthedomesticregulatoryrequirementsfor

capitalstresstesting,loanprovisionsandother

financialsafeguards.

BasedonthestrengthoftheBank’sbalance

sheet,thehighqualityoftheassetsandthearray

ofnewproductsandservices,weareconfident

theprofessionalsofIDBwillpromotecontinued

successfortheirclientsintheyearsahead.

9


List of the Board of Directors

Jacob BermanChairman of the BoardNov 2014 to Present

Ehud ArnonPresident & CEO, Israel Discount Bank of New YorkDirector, Jan 2011 to Present

Lilach Asher-TopilskyPresident & CEO, Discount Bank Ltd.Director, Mar 2014 to Present

Michael GoldsteinChairman of the BoardApr 2006 to Nov 2014Director, Nov 2014 to Mar 2015

Maurice H. Hartigan IIDirector Jun 2009 to Present

Theresa BischoffDirector Sept 2011 to Present

Samuel GortlerDirector Sept 2014 to Present

Orit AlsterDirectorFeb 2013 to Present

Trevor S. HarrisDirectorMar 2014 to Present

Gil KurtzDirectorSept 2008 to Sept 2014

Darcy E. BradburyDirectorSept 2012 to Nov 2014

We are confident

the professionals

of IDB will promote

continued success

for their clients in

the years ahead.

capital ratios (%)LEVERAGE RATIO 8.13% 8.02%TIER 1 RISK-BASED CAPITAL RATIO 11.93% 11.77%TOTAL RISK-BASED CAPITAL RATIO 12.94% 12.78%

condensed consolidated statement of income INTEREST & DIVIDEND INCOME LoansandDepositswithBanks $159,728 $159,728 InvestmentSecuritiesandTradingAccountAssets 82,607 82,568

Total Interest and Dividend Income 242,335 242,296

INTEREST EXPENSE Deposits 36,135 36,168BorrowedFundsandOthers 42,675 42,675

Total Interest Expense 78,810 78,843

NetInterest&DividendIncome 163,525 163,453

Provision for Loan Losses 5,142 5,142

NetInterestIncome,afterprovisionforloanlosses 158,383 158,311

NON-INTEREST INCOME CommissionsandFees 42,316 42,316Other-than-temporaryimpairmentofsecurities (31,391) (31,391)OtherNon-interestIncome 19,459 18,804

Total Non-interest Income 30,384 29,729

NON-INTEREST EXPENSE SalariesandEmployeeBenefits 79,752 79,752 Occupancy,EquipmentandOtherExpenses 61,359 60,860

Total Non-interest Expense 141,111 140,612

NetIncomebeforeIncomeTaxes 47,656 47,428

Income Tax Expense 4,784 4,764

Loss from Discontinued Operations 20,443 20,443

Net Income $22,429 $22,221

IMPACT OF NON-RECURRING ITEMSAddbacklossonsaleofTRUPSof$31,391,netoftaxes $17,296 $17,296AddbackvaluationallowanceforDBLAsaleof$23,936,netoftaxes $18,907 $18,907

Pro-forma adjusted Net Income $58,632 $58,424

consolidated statement of comprehensive income

NET INCOME $22,429 $22,221 Netchangeinavailable-for-salesecurities,netoftaxes 48,808 48,628 Netunrealizedgainoncashflowhedge,netoftaxes 862 862Fundedstatusofpensionandpost-retirementbenefits,netoftaxes (7,163) (7,163)

COMPREHENSIVE INCOME $64,936 $64,548

As of December 31, 2014(Dollars in thousands)


1110

assets

CashandDuefromBanks $52,356 $52,356Interest-BearingDepositswithBanks 208,571 208,571TradingAccountAssets,atmarket 15,494 15,494Available-for-SaleInvestmentSecurities,atmarket 2,126,955 2,126,955Held-to-MaturityInvestmentSecurities(marketvalue$863,890) 838,507 838,507FederalHomeLoanBankStock,atcost 11,278 11,278

Investment Securities 2,992,234 2,992,234

Loans,netofunearnedincome 4,989,067 4,989,067Less:AllowanceforLoanLosses (64,672) (64,672)

Loans, net 4,924,395 4,924,395

Unrealizedgainonderivatives 43,048 43,048PremisesandEquipment,net 17,205 17,205AccruedInterestandAccountsReceivable 54,919 54,919Bank-OwnedLifeInsurance 175,828 175,828Customers’liabilitiesunderacceptances 5,093 5,093Deferredtaxasset,net 40,340 40,340OtherAssets 18,865 18,865AssetsofDiscontinuedOperations 1,250,611 1,250,611

Total Assets $9,783,465 $9,783,465

liabilities

Deposits Domestic Offices Non-interest-Bearing $828,769 $834,271Interest-Bearing 5,029,483 5,034,343

Foreign Offices Interest-Bearing 736,641 736,641

Total Deposits 6,594,893 6,605,255

SecuritiesSoldunderRepurchaseAgreements 1,021,215 1,021,215BorrowedFunds 50,982 50,982

Total Borrowings 1,072,197 1,072,197

Unrealizedlossonderivatives 42,914 42,914Acceptancesoutstanding 5,093 5,093AccountsPayable,AccruedExpensesandOtherLiabilities 87,931 87,909LiabilitiesofDiscontinuedOperations 1,196,092 1,196,092

Total Liabilities $8,999,120 $9,009,460

stockholder’s equity

CommonStock $5,000 $75,259Surplus 94,652 24,393RetainedEarnings 705,295 694,955AccumulatedOtherComprehensiveLoss,netoftax (20,602) (20,602)

Total Stockholder’s Equity $784,345 $774,005

Total Liabilities and Stockholder’s Equity $9,783,465 $9,783,465

IDB Bank & Subsidiaries

FinancialsLEADERSHIP

Discount Bancorp, Inc. & Subsidiaries

13


Services14 U.S.PRIVATEBANKING Investment Management

& Trust

18 INTERNATIONALPRIVATEBANKING

20 LENDINGDIVISION Corporate Lending

Factoring

Commercial Real Estate

Asset Based Lending

30 SOUTHERNCALIFORNIA

32 SOUTHFLORIDA

34 TREASURY Foreign Exchange &

Interest Rate Derivatives

38 CASHMANAGEMENT

40 IDBCAPITAL

12

SERVICES

14

U.S.PrivateBanking

2014wasanexcellentyearforU.S.PrivateBanking,witha$300million

increaseindepositsto$1.6billion,representinga23%growthovertheprior

year.Inaddition,assetsundermanagementroseto$240millionandloans

to$140million.Therewasalsoanimpressive57%increaseinnon-interest

income,fueledinpartbyahighlevelofactivityinwealthmanagement,foreign

exchangeservicesandLettersofCredit.

Muchoftheincreaseinvolumecamefromthecloseworkingrelationships

withclients.Thetwo-wayflowofinformationbetweentheBank’saccount

managersandcommerciallenders,amongothergroups,makesforcamaraderie

andincreasedopportunitiesforourclients.Manyofourclientsreferothersto

theBanktolearnmoreaboutIDB’spersonalattentionandtailoredsolutions.

Theclientsinthegrouprepresentabroadspectrumofbusinessesand

industries.Theseinclude,forexample,adoctorwhohaslaunchedseveral

biotechcompanies,afamilywhooperatesanelectricalcontractingcompany

SERVICES U.S. Private Banking

James LoGattoExecutive Vice President, U.S. Private Banking

15

Our list of diverse clients value the long-term

relationship and service from their IDB banker.


andafamilywhoownsandoperatesboutiquehotelsinManhattan.Allare

amongthediverseclientswhovaluethelong-termrelationshipandservice

fromtheirIDBbanker.

Manyclientsaremotivatedbythelowinterestrateenvironmenttomovetheir

depositsintoportfoliosmanagedbytheInvestmentManagement&Trustgroup

(IM&T)forgreateryieldandpreservationofcapital.Withtheirfocusonincreasing

returnsandprotectingassets,theportfoliomanagersadviseclientsonhowto

limitriskandalsoseetheirmoneygrow.Indeed,theIM&Tgrouphasconsistently

outperformedtheindicesinbothequityandfixedincomeduringaperiodof

volatilityinthemarket.Thisshiftfromdepositstowealthmanagementrepresents

anincreaseinnon-interestfeeincomeforthebank.Accountofficersarealso

introducinginsurance,annuitiesandestateplanningservicesthatcomplement

therangeofwealthmanagementproductsandadvisoryservicesavailableto

theseclients.

Toaccommodateclientinterests,thePrivateBankinggroupnowoffers

investmentsinotherassetclasses,suchascommodities.Itisour

responsivenesstoclientrequestscombinedwithahighlevelof

communicationwithourvaluedclientsthatenablesustomaintain

ahighlevelofnewbusinessgrowthandretention.

Postinga13.4%increaseinrevenue,theInvestment

Management&Trust(IM&T)grouphadavery

successfulyear.Thestrongbaseofclientsin

NewYorkandNewJerseyhassteadilygrown,

withcurrentclientsaddingtoboththeirbusiness

andpersonalinvestmentholdings.Ourdedicated

accountmanagersarealsosecuringnewaccounts.

TheteamsinCaliforniaandFloridaarecontributing

aswell,withgreateractivityinthoseregions

expectedin2015.

Keytothegrowthoftheindividualportfoliosisasset

allocation.Inthefixed-incomesector,managers

placedanemphasisonhighassetqualityandshort

maturitiestoallowforopportunisticre-investment

asratesbecomemoreattractive.Asforequities,

successhascomefromhavingtheappropriate

allocationstoalloftheequityclassesbothwithin

theU.S.andoutside.Ingeneral,clientportfolios

arewelldiversifiedbyassetclass,geography

andacrossallspectrums.Asaresult,IM&Thas

outperformeditsbenchmarkindicesforthepast

fouryears.

Clientsoftentellthegroup’sprofessionalsthey

wantsomeonewatchingthemoneytheyspenta

lifetimemaking;theIM&Taccountmanagers

listenandexecuteinvestmentplansaccordingly.

Thestockmarket’svolatility,especiallyinrecent

times,representedanopportunitytorevisit

allocations.Duringthatperiod,theIM&Tteam

spokedirectlywithclients,bothtokeepintouch

duringthosetumultuousmonthsandtore-evaluate

theirindividualobjectives.

Thegrouphasregisteredgrowthinseveralareas,

includingnonprofitsseekingmanagementoftheir

endowmentfunds,healthcarecompaniesand

apparelclients.IM&Tisnowmanagingthe401(k)

pensionplansandinsurancetrustsforseveral

corporateclientsandlookstoincreasethis

clientbase.

Inaddition,anupgradeintechnologysystems

andefficienciesinthebackofficeareahasimproved

planningcapabilitiesfromtheclients’perspectives.

Withnewsoftwareapplications,clientsmay

evaluatetheirportfolioresultsintwoformats:on

aperformancebasisandonaneedsbasis.

Newandinnovativewealthmanagementproducts

alsocontributetothegroup’ssuccess.Withfull

fiduciarypowers,IM&Tisauthorizedtoactas

executorandtrusteeofclients’estatesinNewYork.

Plansareunderwaytoofferthisservicetoclients

inNewJersey,FloridaandCalifornia.

Lookingahead,thegroupwillcontinueclose

collaborationwithcounterpartsinotherareas

ofIDB,especiallywithinboththeU.S.Private

BankingandtheInternationalPrivateBanking

groups.Forthelatter,manyclientsarechanging

theirobjectivesfrompreservingcapitaltogrowth

oftheirinvestments,forthemselvesandforthe

nextgeneration,supportedbythestrengthof

relationshipsandsolidcommunicationwithIDB.

InvestmentManagement&Trust

SERVICES Investment Management & Trust

16 17


Clients often tell the group’s professionals

they want someone watching the money

they spent a lifetime making; the IM&T

account managers listen and execute

investment plans accordingly.

18

SERVICES International Private Banking

InternationalPrivateBanking

Forthepasttwoyears,theInternationalPrivateBankinggrouphasgrown

significantlythroughtheintroductionofnewproducts.Theseincludean

extensivearrayofstructuredtimedepositproducts,mutualfunds,investments

inprivateequityfundsanddiscretionaryportfoliomanagement.

InternationalPrivateBankingseeksoutthemostattractiveinvestmentsinthe

marketplaceandobjectivelyrecommendsthemtoclientsbasedonindividual

investmentgoals,riskprofilesandotherappropriatefactors.Manyclients

haveplacedtheirinvestmentsindiscretionaryportfoliosmanagedbytheIM&T

groupofIDBNY.

Theinterestrateontraditionaldepositsdeclined;anumberofclients,who

areaddingtotheiraccounts,areshiftingportionsoftheirdepositsintoother

productsinordertoachievehigherreturns.

Chaya RubExecutive Vice President, International Private Banking

1919


TheAccountOfficersoftheInternationalPrivate

Bankinggrouparelicensedtosellsecuritiesin

theU.S.Theyareparticularlyadeptatintroducing

clientstothebroadarrayofinvestment

opportunitiesandservicesofIDB.Naturally,

theyarefamiliarwithLettersofCreditandforeign

exchangeservicesfortheirinternationalclients,

aswellasthefullspectrumoftheBank’slending

operationsforclientbusinesses.

Clientsinvitetheirsonsanddaughterstojoin

theminmeetingswiththeiraccountmanagers,

andthisnextgenerationoftenisinterestedinmore

sophisticatedinvestmentsandnewerproducts.

Thesediscussionsrepresentopportunitiesfor

communicationandeducationwiththeseclients.

Marketdynamicswillundoubtedlyplayaroleinthe

group’sfuturegrowth.TheInternationalPrivate

Bankinggroup,withcontributionsexpectedfrom

colleaguesintheFloridaoffice,ispreparedfor

anothersolidyear.

Clients invite their sons and daughters to

join them in meetings with their account

managers, and this next generation often is

interested in more sophisticated investments

and newer products.

LendingDivision

ItwasanexceptionalyearfortheLendingDivision,witha10%growthinloans.

Inaddition,activityinallsegmentsofthegroupincreased,reflectingtheimpact

ofanimprovingeconomy,withallourbusinesslinescurrentlyperformingwell.

Someofthelargerbanksaremovingawayfromourtraditionalniches,leaving

someoftheircustomersfeelingdisenfranchisedandsearchingforthepersonal

attentionandflexibleapproachofIDB.Forexample,severalbankshaveleft

thediamondandjewelryindustry,amarketwhereIDBistraditionallystrong.

Weremaincommittedtoservingtheseclientsandhaveevenexpandedthis

businesstotakeonnewclients.Thesenewopportunities,togetherwithstrong

ongoingclientrelationships,havemadeforaverygoodyear.

Oneareathatstandsoutasparticularlystronginthepastyearisthenonprofit

andhealthcaresector.Clientsfromsocialserviceorganizations,educational

andcharitableorganizations,andhealthcarefacilitiestooknewloans.OnLong

Island,twoofthelargestnot-for-profitAssistedLivingFacilitiesworkedwith

IDBonfinancingtoexpandtheirfacilities.

SERVICES Lending Division

20

Lissa BaumExecutive Vice President, Chief Lending Officer

21

Manynot-for-profitclientswhoobtainedloans

areaddingtotheservicestheyusewithintheBank.

Theymaintainactivedepositoryrelationships,

useIDBAccess®,theBank’sonlinecash

managementservice,andhaveengagedthe

InvestmentManagement&Trustgroupto

managetheirportfolios.

ClientsatisfactionisstrongintheTradeandFinance

market,whereanupgradeinthecustomer-facing

softwarewillprovidemoreefficientserviceand

betterreportingcapabilities.Throughbothinternal

developmentoftechnologyandresponsesto

customerfeedback,theBankwillcontinueto

supportandupgradetheseservices.

ImportersandwholesalersusingtheLetterof

Creditfacilityhavelongbeenloyalcustomersof

IDB.Themajorityoftheseclientsareintheapparel

andaccessoriesindustries,andnow,companiesin

thehomefurnishingsandelectronicsmarketsare

alsobecomingclients.

IDBisactivelyinvolvedintransactionsthatrequire

arrangingcreditfacilitieswithtwoormorebanks.

Theseclubdealsarebecomingmoreprevalent

intheassetbased,realestate,apparelandhome

furnishingsmarkets.Byputtingthedealtogether,

IDBretainsexistingclientsandprovidesforthe

customers’needsforfuturegrowth.

Lookingahead,lendingofficersareactivelyreaching

outinthetri-stateareaforprospectiveclients.

Thegroupanticipatesadditionalmarketpenetration

inotherindustries,suchaspharmaceuticals,

chemicals,businessservicescompanies

andelectronics.


Some of the larger banks are

moving away from our traditional

niches, leaving some of their

customers feeling disenfranchised

and searching for the personal

attention and flexible approach

of IDB.

22

SERVICES Corporate Lending

Flexibility and streamlining the

loan approval process are what

our clients value most when

seeking loans from IDB.

23


CorporateLending

Thehealthcareandnot-for-profitsector

recordedsubstantialloansforsocialservice

agenciesandforhospitals,whichprovidevital

servicestotheunderservedinourcommunities.

Projectsweworkedonprovidedhousingand

servicesfordevelopmentallydisabledindividuals

aswellasacardiacunitonthesouthshoreofLong

Island.Thereisastrongbackloginthehealthcare

sector,whichispromisingfor2015.

WorkingwiththeInterestRateDerivativesteam,

theCorporateLendinggroupofferedclientsinterest

rateswapstomitigateriskandtakeadvantageof

theprevailinglowerinterestrates.

Becausemanyclientsareentrepreneurs,theyare

interestedininvestinginnewproductsandtrying

otherservicesthatIDBoffers.Theseclientsseekto

diversifytheirassetsviainvestments,insurance,real

estateandotherareas.Thisbroadensanddeepens

theirtiestotheBank.

In2015,theCorporateLendinggroupisfocused

onsegmentingmarketstoseekoutspecialized

industries.Theseincludeindustriessuchas

beverage,pharmaceuticalsandnutraceuticals.

ThiswasaverystrongyearfortheCorporate

Lendingteam,whichbookedabout$400million

innewcreditfacilities,includingalargenumber

ofnewaccounts.Duetothelowinterestrate

environment,itwasamostcompetitive

landscape;IDBmonitoredthecreditqualityof

itsloanbookandproducedsolidreturns.

Abouthalfoftheloanportfolioconsistsof

companiesinthemiddle-marketsector,with

revenuesfrom$10millionto$500million,suchas

consumer,apparel,diamondsandjewelry,food

distributorsandlightmanufacturingbusinesses.

Theotherhalfoftheloanbookbalanceisnearly

equallyrepresentedamonghealthcareandnot-for-

profitgroups,midsizecorporatebusinessesand

U.S.subsidiariesofcompaniesbasedinIsrael.

Thisspectrumofindustriesindicatesthebroad

knowledgebaseoftheAccountOfficers;they

areabletopenetratemanydiversesectorsand

creativelyserveclientstomeettheirfinancing

needs.Flexibilityandstreamliningtheloanapproval

processarewhatourclientsvaluemostwhen

seekingloansfromIDB.Theyalsobenefitfrom

ourabilitytoprovideaquickturnaroundon

newrequests.

24

Factoring

TheFactoringloanbookgrewmorethan40%

overlastyear.Buoyedbyincreasedactivity,higher

volumeandbroadermarketdynamics,thegroup

alsopostedasubstantialriseinnon-interest

revenueanddeposits.

Asdomesticmanufacturershaveincreasedoffshore

activity,theirbusinessmodelshavechangedin

recentyears.Withlowerinfrastructureexpenses

domestically,theyneedtore-directtheircashflows

toaccommodateoverseasactivities.Accordingly,

thesecompaniesusetheiraccountsreceivableas

collateralforworkingcapitalloansandforopening

LettersofCredit.

Factoringhaslongbeenasourceofworkingcapital

fordiverseindustriesandacost-effectivewayto

mitigatethepaymentriskofbuyers.The

improvementsintheU.S.economyin2014

continuedtoconfirmFactoring’sroleasavital

sourceoffunds.Increasesinconsumerspending

generatedhighervolumesrelativetocapital

investment,whichinturn,requiredmorefunds

forworkingcapital.Asinthepast,IDBprovided

solutionstoitsclientstomeettheirfundingneeds.

SERVICES Factoring

Account Officers maintain

contact with clients and review

the collateral daily. This high

level of service permits IDB

to maintain a keen awareness

of credit risk so that it may

comfortably pursue more

leveraged deals elsewhere.

25


IDBoffersitsFactoringclientscustomizedproducts

andservice.Thefocusondevelopingapackagefor

companiesthatworksforthemtodayandtomorrow

meansthegroup’sprofessionalscontinuallytailor

thatpackagetothelifecycleofthecompany.

Thekeyservicesandcomponentsinfactoringare

theinterestrateonborrowedfunds,commissionon

thefacevalueoftheinvoicesforthecreditguaranty,

processingtheremittancesandmonitoringthe

maturityoftheinvoicesandpayments.Speedto

marketcanoftenbecriticalinhelpingclientsmeet

theirfinancingneeds.AccountOfficersmaintain

contactwithclientsandreviewthecollateraldaily.

ThishighlevelofservicepermitsIDBtomaintain

akeenawarenessofcreditrisksothatitmay

comfortablypursuemoreleveraged

dealselsewhere.

TheclientsoftheFactoringgrouparehighly

diversified.Elsewhereintheindustry,salestothe

apparelsectormayconstituteasmuchas80%of

afactoringcompany’svolume.Bycomparison,the

apparelindustryismerely30%ofthetotalatIDB.

IDBFactoringservicesmanyclientsinthefoodand

beverageindustry,homefurnishings,electronics

andothersectors.Bymaintainingavariedportfolio,

theFactoringgroup’sbookofbusinessisless

vulnerabletoswingsintheconsumermarkets.

Anticipatingvolumegrowthamongexistingcustomers,

underscoredbystrong,long-termrelationships,plus

theadditionofnewproductsandclients,Factoring

ispoisedforanotherstrongyear.

SERVICES IDB Bank Annual Report 2014

26

IDB Bank Annual Report 2014Commercial Real Estate

CommercialRealEstate

Buildingastrongcustomerbasehasbeenthekeyto

thesuccessoftheCommercialRealEstateLending

group(CRE)atIDB.In2014,theloanportfoliogrew

by18.5%comparedtolastyear.Thisperformance

continuesatrend:since2012,CREloanshave

increasedby87%.Depositaccountsareanother

growthenginefortheteam,up25%comparedto

lastyear.

IDBisknownforrespondingquicklytoacustomer’s

needs.Inoneinstance,alongtimeclientwanted

tocompleteanacquisitionandhadlessthan30days

toclosethefinancingforthetransaction.Through

thecloserelationshipandunderstandingofthe

company’soperations,theCREteammetthe

timelinetogettheloanfunded.

MuchoftheBank’sCREloanportfoliocollateral

isconcentratedintraditionalpropertytypes,such

asshoppingcenters,officebuildings,warehouses,

hotelsandmultifamilyapartmentbuildings.The

Bank’sclientsincluderealestatecompaniesand

professionalrealestatebusinesses,manyofthem

long-standingindividualrelationships.

AlthoughIDBgenerallyservesasthesolelender,

onoccasionitwilloriginatealargerloantobe

sharedwithotherbanks.Inthosecases,theBank

servesasanadministrativeagent.Theseloans

oftenfinanceofficebuildingsandhotelsincore

geographicmarkets.

InOctober,CRElaunchedanewprogramtoserve

aninterestingnewclientbase,namely,Israeli

institutionalclients,suchasinsurancecompanies

andpensionfunds.Theywishtoinvesttheirexcess

liquidityintheU.S.markets.Thehigh-qualityloan

portfoliooftheBank’srealestategrouprepresents

anattractiveinvestmentopportunity.

Anothernewtargetcustomeristheprivateequity

market.Here,participantsarelookingforunique

loanstructuresthatmakesensefortheirown

investmentsaswellasloanstotheirportfolio

companies.IDBdevelopstransactionsthatmeet

theirspecializedneeds.

WorkingwithIDB’sTreasurygroup,therealestate

teamisabletoofferinterestratederivativeproducts

(e.g.,interestrateswaps)toborrowingcustomers

andprovideawin–winwherethecustomer’srateis

fixedandIDB’srateisvariable.Thisprovidesrate

protectiontothecustomerwithoutputtingIDB

portfolioliquidityatrisk.

Lookingto2015,newloanandderivativeproducts,

togetherwiththedeeperpenetrationoftheIsraeli

institutionalmarket,willaddtothegrowthofthe

numberofcustomersandtheloanportfolio.The

veryactiverealestatemarketinMetroNewYork,

togetherwiththeSouthernCaliforniaandFlorida

markets,alsobodeswellfortheCommercialReal

Estategroupintheyearahead.

27

The Bank’s clients include real

estate companies and professional

real estate businesses, many with

long-standing relationships.

28

SERVICES Asset Based Lending

AssetBasedLending

TheresultsoftheAssetBasedLendinggroupreflect

atransitionalyear.In2014,loanactivityremained

stableduringaperiodwhenratescamedown.At

thesametime,marketcompetitionintensifiedasall

participantssoughttoincreasevolume.Inthismore

intenseenvironment,IDBmaintaineditsfocuson

creditquality.TheAssetBasedLendinggroupstayed

awayfromtakingonmorerisksimplyforthesakeof

addingtotheloanportfolio.

AssetBasedloansarecustomizedandarestructured

asadvancesagainstanassetclass.Termsinclude

thefrequencyofreportstothelenderandpayment

guarantees,aswellastherangeofinterestrates,

consistentwiththeprevailingmarketratesandthe

creditqualityoftheborrower.

Thegrouppridesitselfonthefactthattheirlong-

lastingrelationshipspermittheAccountOfficers

togiveaquickapprovalifconditionsareappropriate.

Forexample,aprivateequityfundsoughttoborrow

fundsfortheU.S.subsidiaryofanIsraelicompany.

Inlessthanthreeweeks,withcooperationfrom

alltheparticipatingcompanies,IDBwasableto

speedilyclosetheloan.

Overthepastyear,thegrouphasfocusedonthe

moretraditionalmarkets,workingwithclientsin

themanufacturing,wholesale,retail,distributor,

beverage,apparelandspecialtyfinancesectors.

Somemorerecentadditionstotheloanportfolio

arestaffingcompanies,amobilephonedistributor,

ahealthandbeautyaidsmanufacturer,asporting

goodscompany,educationaldistributors,achemical

foodadditivedistributorandanInternetretailer.This

mixofbusinessescontributestoahighlydiversified

portfolio,makingthebusinesslessvulnerableto

changesinthebroadereconomy.

Themarketenvironmentisbecomingmore

competitive,asothercommercialbanksare

enteringthearenainsearchofassetgrowth.

Somealternativeinvestmentfunds,whichare

notsubjecttothesametypesofregulatory

oversight,arealsomovingintotheassetbased

lendingbusiness.

Over the past year, the

group has focused on the

more traditional markets,

working with clients in the

manufacturing, wholesale,

retail, distributor, beverage,

apparel and specialty

finance sectors.

29


Sometimesthesecircumstancesfavortheborrower

whoismerelyinsearchoftheleastexpensiverate.

FormanyIDBclients,however,it’snotjustabout

thenumbers.ClientstelltheirAccountOfficersthat

theyvaluehowIDBhasalwaysbeentheretosupport

them,whichtestifiestothestrengthofongoing

relationships.TheAssetBasedLendinggroupwill

doitsutmosttomaintainthatloyalty.

SERVICES Southern California

SouthernCalifornia

TheSouthernCaliforniaofficeshadanimpressiveyear,experiencingsignificant

growthinbothbusinessandprivatebankingactivities.Theloanportfoliogrewby

24%in2014,demonstratingcontinuedstrengtheningofthelocaleconomyand

IDB’sabilitytobeavaluedpartnertolocalbusinessesandtheirprincipals.

WithrobustnewloanvolumeinboththeCorporateandRealEstatelending

areas,IDBisrecognizedinthelocalmarketforitsabilitytounderstandthe

needsofclientsandprospects,andprovidequickandefficientresponseswhile

maintainingahighlevelofpersonalservice.

Corporatelendingactivitieshavebeenwelldiversifiedinindustriesinwhichthe

Bankhasdeepexperience,includingapparel,healthcare,foodandbeverage,

diamondandjewelry,healthandbeautyproducts,andnon-predatoryconsumer

finance.TheBankisalsolookingtoexpandintonewindustriesasitcontinuesto

increasepresenceintheSouthernCaliforniamarket.Assetbasedlendingand

factoringarealsooffered.

Kiyoun KimExecutive Vice President, Southern California

30


Commercialrealestateactivityhasbeenquitestronginthe

SouthernCaliforniamarket,andIDB’slendingactivityhasalso

experiencedsignificantincrease.TheareainwhichtheBank

wasmostactivein2014wasthesecuredbridgefinancingspace,

wheretheexpertiseandexperienceoftheBank’semployees

resonate.Customizedlendingstructuresandswiftturnaround

givesIDBacompetitiveadvantageovermanylargerbanksthat

haveaslowerapprovalprocess.

Depositscontinuedtogrowin2014,withanincreaseof15%

fromthepreviousyear.Thisrepresentsnewandexpandedclient

relationships,manyofwhomuseIDB’scashmanagement

products.PrivatebankingactivityhasalsogrownasIDB

continuestoexpanditswealthmanagementplatform,which

offersafullarrayofservices,includinginvestmentmanagement,

brokerage,lifeinsuranceforestateandsuccessionplanning,

and401(k)managementandadministrationservices.IDB’s

approachishighlycustomizedandinnovative,bringingadded

valuetoourclients,tohelpthemachievetheirgoalsforwealth

managementandpreservation.

WithfurtheranticipatedgrowthintheCaliforniaeconomy,

theSouthernCaliforniaofficesarehighlyengagedinthelocal

markettofindwaystobringvalueandsolutionstobusinesses

andtheirowners.

IDB’s approach is highly

customized and innovative,

bringing added value to

our clients, to help them

achieve their goals for

wealth management

and preservation.

31

32

SERVICES South Florida

SouthFlorida

TheloanportfoliooftheSouthFloridaofficehassignificantlyexpandedin

thepastyear.Thefocusoncommercialrealestateandcorporatelending

isbringingloansofhighercreditquality.

Someareasofsignificantgrowthinthecorporatelendingarenainclude

serviceanddistributionfacilities,marine-relatedbusinesses,assisted

livingfacilitiesand,forthefirsttime,theairlineindustry.Loansinthe

Floridamarketusuallyareinthe$5millionto$10millionrange,andIDB

developsverycloseworkingrelationshipswithclients.Overthelongterm,

thatfamiliaritycreatesopportunitiestodeepenanunderstandingofthe

business,anticipateitsneedsandprovidemoreservices.

ThenumberofaccountsintheU.S.PrivateBankingbaseisalsosteadily

increasing.Amongtheseclients,manyindividualsareshiftingportions

oftheirfundsfromdepositstoinvestments.Theirfocusisnotonlyto

protecttheirassets,butalsotogrowthemovertime.Manyofthenewer

accountsareoflargersize,whichcreatesadditionalopportunitiesto

introducetheclientstotheinsuranceandannuitiesproductsand

wealthmanagementservices.

Moise HillelExecutive Vice President, South Florida


BecauseMiamiisthegatewaytoLatinAmerica,thereareconsiderable

opportunitiesforgrowthamongdomesticandinternationalclientswith

businessandfamilytiestothatregion.Moreover,theBank’straditional

focusonfamily-operatedbusinesses,togetherwiththebroadmixofservices

offeredtoprivatebankingclients,promotesplanningforwealthretentionand

distributionoverthelongerterm.IDBstandsapartfromthetraditionalretail

banksandcompetitorswithitspersonalizedservice,whichinturnfosters

strongcustomerretention.

TheprofessionalsoftheFloridaofficeworkcloselywiththeircounterparts

inNewYorktohelptheirclientstransactbusinessinthelocalmarket.For

example,theteamarrangedforadeveloperintheFloridarealestatemarket

tosecurealoanthroughtheassetbasedlendingteaminNewYork.Theoffice

expectstofacilitatesimilarreferralsgoingforward.

Someobserversforecasttheinvestmentinthetransportationinfrastructure

andtheprojectedexpansionoftheseaportofMiamiwilllikelyhaveacascading

effectacrossmultipleindustrysectors.Theneedforincreasedstoragefacilities

willalsospurconstructionofofficesforthecompaniesinvolvedintrade

activitiescenteredinthemaritimedistrict,aswellasemploymentopportunities

forthesebusinesses.IDBwillbethere,readytoprovidefinancingforthe

developmentoftheinfrastructureandofficebuildings,andtoofferloansto

newbusinesses.

Lookingto2015,theSouthFloridaofficeanticipatesadditionalgrowth

inbothloansandprivatebanking,consistentwiththelocaleconomy’s

upwardtrajectory.

IDB will be there, ready to provide

financing for the development of the

infrastructure and office buildings, and

to offer loans to new businesses to be

located at the port.

33

34

SERVICES Treasury

Treasury

TheTreasurygroupservestheentireBank’soperations,providingthenecessary

liquidityforloans,aggregatingdepositsandmanaginginvestmentgrowth.

TheAccountOfficersinthisgroupbroughtinnewbusinessandcreated

additionalvalueforcustomersbymarketingnewproductsandservices.

LiquidityoffundswithinTreasuryisofimportance.Withanemphasison

highcreditquality,theholdingsarealmostexclusivelyU.S.fixed-income

securities,rangingfromgovernmentagenciesandmunicipalbondstoall

issuersofmortgage-backedsecurities.

AsaresponsetoongoingeconomicchangesandTreasury’sforward-looking

viewoftheeconomiclandscape,thedurationandaveragelifeofTreasury’s

fixed-incomeportfoliohasbeenreduced.Thecurrentshortaveragelifeis

consistentwiththeBank’sperspectivethatitshouldbepreparedforany

increaseininterestrates.Atatimewhenbondyieldsareexpectedtorise,itis

besttokeeptoashorterfixedincomeaveragelife,allowingforanincreased

cashflowfromwhichtore-investintoincreasinglyrisingyields.

David CohenExecutive Vice President, Treasury

35


Changesininterestpromptedprofit-takingsalesandthepurchaseofselected

assetsatfavorablerates.Theinvestmentteamisexperiencedatwatchingthe

marketandinterpretingeconomicdata.TheTreasuryprofessionalshavean

in-depthunderstandingoftheportfolioandeachsecurity’scharacteristics.

Asaresult,theyareabletomakequickdecisionswhenopportunities

presentthemselves.

TheTreasurygroupanticipatesandforecastsinterestratedevelopmentsand

conductsstresstesting.Itsprofessionalsmonitorhowtheassetsandliabilities

oftheBank’sbalancesheetwillperforminvariouscircumstances,aswellas

overallliquidity.

Throughaselectionprocessontheportfoliomanagementside,fundswere

movedintohigherqualityassets,andsomelegacypositions,suchastheTrust

PreferredSecurities(TRUPS)andotherassets,weresold.

Lookingahead,theTreasurygroupisalwaysalerttotrackingrisk-weighted

assetsandmakingsurethattheBank’scapitalisoptimallydeployedforgreater

incomewhilemaintainingcreditqualityandmonitoringrisk.Bybeingattentive

tocontrollingthecostoffundsandmaintaining,andevenincreasing,margins

forproducts,whetherloansorcapitalmanagement,Treasuryplansforanother

successfulyearin2015.

The Treasury professionals have an

in-depth understanding of the portfolio

and each security’s characteristics.

As a result, they are able to make

quick decisions when opportunities

present themselves.

36 37


ForeignExchange&InterestRateDerivatives

TheForeignExchangeandInterestRateDerivatives

groupreportedsubstantialrevenuegrowthin

2014.Asignificantportionoftheincreasein

volumeisdirectlyattributabletoanevencloser

workingrelationshipwiththeAccountOfficersin

thediverselendinggroups,notably,Corporate

Lending,Factoring,InternationalPrivateBanking

andtheFloridaoffice.Thiscollaborationresulted

inmorebusinessfromexistingIDBclients,as

wellasalargenumberofnewlendingand

bankingrelationships.

In2014,thegroupshifteditsfocusfromproprietary

tradingintheforeignexchangemarketstoa

customer-centricbusiness.

Insomecases,theforeignexchangeopportunities

canevenserveasanattractionforaprospective

client,aswasthecaseforalargeproducecompany.

Becausethecompanypaysforproduceindollars

andsellsittocompaniesinEuropeforEuros,they

wereveryintriguedtolearnwhatIDBcoulddoto

helpthemmanagetheircurrencyexposure.

AnotherinterestingnewForeignExchangeclientis

aU.S.engineeringcompanywhosebuildingproject

inIsraelisfundedinU.S.dollars.Theyneedtopay

theirlocalsubcontractorsinShekels,sotherefore,

itisimportantforthemtohedgetheexposure

thiscreates,anddosobyutilizingIDB’sForeign

Exchangeproducts.

Withrespecttointerestrateproducts,inan

environmentwhereratesarequitelow,many

businesseswishtohedgefloatingratedebtby

lockinginveryfavorablefixedrates.Therehasbeen

amajorpickupinthegroup’sactivityinNewYork,

especiallyintherealestatemarket.Itislikelythere

willbeanincreaseintheseinterestrateproducts

inCaliforniaandFloridaaswellbecauseofthe

ongoingstrengthoftheirregionalrealestate

marketsactivities.

Theforeignexchangevolatilityin2014wasawake-up

callandshouldencouragecompaniesinvolvedin

internationalbusinesstodevelophedgingstrategies

toprotecttheirprofitsandkeepcostsataminimumin

2015andbeyond.Companieswithalargeexposure

tofloatinginterestratesalsoneedtopayattention

astheprospectofhigherratesincreases.These

businesseslooktoIDB’sexpertisetohelpmanage

thatexposureforthem.Accordingly,thegroupcan

createcustomhedgingstrategiesforourclients,

basedontheiroperationalneeds,appetiteforrisk

andtypeofexposure,tohelpensuretheirsuccess

intheyearahead.

SERVICES Foreign Exchange & Interest Rate Derivatives

A significant portion of the

increase in volume is directly

attributable to an even closer

working relationship with the

Account Officers in the diverse

lending groups.

38

SERVICES

CashManagement

IDBAccess®,theBank’sCashManagementplatform,isasophisticatedset

ofonlineproductsandservicesthathelpourclientsimprovetheirfinancial

operationsacrossalltypesofindustries.Fromrealestatetomanufacturing

toappareltojewelry,IDBAccesssupportsallofourclients’collectionsand

paymentsneeds.Inaddition,theBank’sexperiencedCashManagement

professionalshelpclientstakeadvantageoftheefficienciesthatour

productsoffer.

TheBank’sCashManagementteamworkswithclientstoimprovetheir

internalprocessingastheymovefrommoreexpensive,paper-basedmethods

ofcollectionsanddisbursementstoelectronicandmoreautomatedprocesses.

Asaresult,clientscanmanagetheiroperationsmoreefficiently.

Manyclientstakeadvantageofthestreamlineddatauploadanddownload

features,helpingtosignificantlyminimize,ifnoteliminate,errors.Withtheir

deepunderstandingofpaymentprocessesacrossmultiplechannels,our

professionalsembodyaclient-friendlyserviceapproach.Wefreelyofferadvice

toimproveclients’internalfinancialoperationsandprovidebothhands-on

andweb-basedtraining.

Cash Management

Linda WeberSenior Vice President, Cash Management

TheIDBAccesssuiteaddedanew,state-of-the-artlockboxproductinlate

2014.Thisnewproductallowsclientstoexpeditecollectionoftheircheck-based

receivables.IDBAccessLockboxalsohasspecificfunctionalitygearedtothe

realestate/propertymanagementandhealthcare/insurancesectors.Thenew

productaddseasy-to-useandflexibleviewingandreportingcapabilities.

Ofcourse,withIDBAccess,ourclients’securityisapriority.IDBAccessleverages

multi-factorauthenticationandimplementssomeofthelatest,mostusefulonline

securitytechnology.

TheCashManagementcustomerbaseincreasedbyover15%in2014,proving

thatexistingandnewclientsseetheadvantagesofmovingtheirpaymentand

depositactivityonline.

Additionalproductsandservicesarescheduledforreleasein2015,helpingour

clientsfurtherimprovetheiroperationalefficienciessotheycanfocusontheir

corebusinesses.


From real estate to manufacturing

to apparel to jewelry, IDB Access

supports all of our clients’ collections

and payments needs.

39


4140

SERVICES IDB Capital

IDBCapital

Asthefull-servicebrokeragesubsidiaryoftheBank,IDBCapital,member

FINRA/SIPC,providesbrokerageandinsuranceservicestocustomersof

IDBNY’sdomesticandinternationalprivatebankingdivisions.Weofferabroad

arrayofwealthmanagementservices,includinginvestmentmanagement,

retirementservices,wealthtransferandbusinessplanningstrategies.

Overall,wearepromotingamigrationofassetsfromatransactional

brokeragebusinessmodeltoawealthmanagementmodel,whichfocuses

ondiversifiedassetallocationstrategiesandcoordinationwiththeBank’s

discretionaryinvestmentmanagementservices.Thisapproachimprovesthe

qualityofclientportfoliosandgeneratesrecurringfeeincomebasedonthe

growthofassetsundermanagement.

Asever,IDBCapitalisengagedindevelopingnewproductsforclientsto

meettheirinvestmentgoals.BecausetheBankmaintainsrelationshipsacross

multiplegenerations,weareexpandingourproductbasetomeettheirdiverse

Matt RozziExecutive Vice President, IDB Capital

needs.Thesenewproductsincludealternative

investmentsandprivateplacements,whichin

somecases,offerattractivereturns.

Inaddition,thegroupsignedajointmarketing

agreementwithKBFinancialPartnerstooffer

afullrangeofinsuranceproductsandwealth

transfersolutions,aswellasexecutivebenefit

andretirementplanconsultingservices,to

individualsandbusinesses.

Lookingahead,thereisafocusonaddingtothe

numberofdomesticclientsfromtheU.S.Private

BankingandLendinggroups.Thisapproachhas

alreadybeguntoproduceresultsasclientsseek

toobtainmorevalue-addedservicesfromtheir

trustedbankingrelationships,atrendthat

suggestsadditionalgrowthin2015.

Because the Bank maintains relationships

across multiple generations, we are

expanding our product base to meet

their diverse needs.

42

LOCATIONS

*Non-FDIC insured branch**Member FINRA/SIPC

IDB Bank is a registered service mark of Israel Discount Bank of New York and a wholly-owned subsidiary of Discount Bancorp, Inc. Member FDIC.Other Discount Bancorp, Inc. subsidiaries: DB Properties, Inc.

Main Office

511FifthAvenueNewYork,NY10017Tel:(212)551-8500

Branch Offices

201EdwardCurryAvenue,Suite204StatenIsland,NY10314Tel:(718)698-4892

400AvenueUBrooklyn,NewYork,NY11223Tel:(718)382-4987

150JohnF.KennedyParkwayShortHills,NJ07078Tel:(973)379-8699

9401WilshireBoulevard,Suite600BeverlyHills,CA90212Tel:(310)860-6320

888SouthFigueroaStreet,Suite550LosAngeles,CA90017Tel:(213)861-6440

HarbourCentre18851NE29thAvenue,Suite600Aventura,FL33180Tel:(305)682-3700

P.O.Box694GTGeorgeTownGrandCayman,CaymanIslands*

Subsidiary Bank

DiscountBankLatinAmericaRincón390Montevideo,Uruguay

Other Subsidiaries

IDBCapitalCorp.**511FifthAvenueNewYork,NY10017

IDBNYRealty(Delaware),Inc.1105NorthMarketStreet,Suite1446Wilmington,DE19899

IDBRealty,LLC511FifthAvenueNewYork,NY10017

IDBRealEstateHoldings,Inc.511FifthAvenue,NewYork,NY10017

IDBLeasing,Inc.511FifthAvenue,NewYork,NY10017

IDB-HKLtd.Level28ThreePacificPlace1Queen’sRoadEastHongKong

Representative Offices

PERUAmadorMerinoReyna295,of.701SanIsidro,Lima,PeruTel:(511)421-8384

URUGUAYGeneralVenancioFlores431ColoniadelSacramento,CP70000Colonia,UruguayTel:(598)4522-1123

WorldTradeCenterLuisAlbertodeHerrera1248TorreBPiso4,of.409Montevideo,UruguayTel:(5982)622-2257

MEXICO Av.Homero1804,of.202ColoniaPolanco,11560Mexico,D.F.,MexicoTel:(5255)5395-0634

ISRAEL OfekHouse8Ha’ManofimStreet,3rdFloorP.O.Box12406HerzliyaPituach,46733IsraelTel:(972)9-773-7400

CHILE Av.Vitacura2771of.804LasCondes,Santiago,ChileTel:(562)236-5600

IDBBankisaregisteredservicemarkofIsraelDiscountBankofNewYork.MemberFDIC.

idb bank annual report 2014 - janet l. falk · clients, invested in technology, improved our...

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