XML 38 R19.htm IDEA: XBRL DOCUMENT
v3.20.4

Deposits | 12 Months Ended
--- | ---
Dec. 31, 2020
Banking and Thrift, Interest [Abstract] |
Deposits |
11. | Deposits
WEX Bank’s regulatory status enables it to raise capital to fund the Company’s working capital requirements by issuing deposits, subject to FDIC rules governing minimum financial ratios. See Note 26, Supplementary Regulatory Capital Disclosure, for further information concerning these FDIC requirements. WEX Bank accepts its deposits through: (i) certain customers as required collateral for credit that has been extended (“customer deposits”) and (ii) contractual arrangements with brokerage firms for both certificate of deposit and brokered money market deposit products. Customer deposits are generally non-interest bearing, certificates of deposit are issued at fixed rates and brokered money market deposits are issued at variable rates based on LIBOR or the Federal Funds rate. The following table presents the composition of deposits, which are classified as short-term or long-term based on their contractual maturities:
| December 31,
(in thousands) | 2020 |  | 2019
Interest-bearing brokered money market deposits 1 | $ | 439,894 |  |  | $ | 362,246 |
Customer deposits | 116,694 |  |  | 112,571 |
Certificates of deposits with maturities within 1 year 1,2 | 354,807 |  |  | 835,996 |
Short-term deposits | 911,395 |  |  | 1,310,813 |
Certificates of deposit with maturities greater than 1 year and less than 5 years 1,2 | 148,591 |  |  | 143,399 |
Total deposits | $ | 1,059,986 |  |  | $ | 1,454,212 |
Weighted average cost of funds on certificates of deposit outstanding | 1.81 | % |  | 2.57 | %
Weighted average cost of interest-bearing brokered money market deposits | 0.27 | % |  | 1.88 | %
1 As of December 31, 2020, all certificates of deposit and brokered money market deposits were in denominations of $250 thousand or less, corresponding to FDIC deposit insurance limits. 2 Original maturities range from 1 year to 5 years, with interest rates ranging from 1.35 percent to 3.52 percent as of December 31, 2020. At December 31, 2019, original maturities ranged from 4 months to 5 years with interest rates ranging from 1.80 percent to 3.52 percent. In accordance with regulatory requirements, WEX Bank maintains reserves against a portion of its outstanding customer deposits by keeping balances with the Federal Reserve Bank. There was no required reserve at December 31, 2020, due to temporarily relaxed Federal Reserve requirements enacted in response to the COVID-19 pandemic. The required reserve was $24.9 million at December 31, 2019. The following table presents the average interest rates for deposits and interest-bearing brokered money market deposits:
| Year ended December 31,
(in thousands) | 2020 |  | 2019 |  | 2018
Average interest rate: |  |  |  |  |
Deposits | 2.21 | % |  | 2.46 | % |  | 1.91 | %
Interest-bearing brokered money market deposits | 0.61 | % |  | 2.28 | % |  | 2.03 | %
Sources of Funds ICS Purchases From time to time, WEX Bank utilizes alternative funding sources such as Promontory Interfinancial Network, LLC’s ICS service, which provides for one-way buy transactions among banks for the purposes of purchasing cost-effective variable-rate funding without collateralization. WEX Bank may purchase brokered money market demand accounts and demand deposit accounts in amounts not to exceed $125.0 million through this service. There were no outstanding balances for ICS purchases at December 31, 2020 and 2019.

X
- References No definition available. + Details
Name: | us-gaap_BankingAndThriftInterestAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for deposit liabilities including data and tables. It may include a description of the entity's deposit liabilities, the aggregate amount of time deposits (including certificates of deposit) in denominations of $100,000 or more at the balance sheet date; the aggregate amount of any demand deposits that have been reclassified as loan balances, such as overdrafts, at the balance sheet date; deposits that are received on terms other than those in the normal course of business, the amount of accrued interest on deposit liabilities; securities, mortgage loans or other financial instruments that serve as collateral for deposits; for time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years following the balance sheet date; and the weighted average interest rate for all deposit liabilities held by the entity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 405 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=116652737&loc=d3e64164-112818 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.12) -URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878 + Details
Name: | us-gaap_DepositLiabilitiesDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration