Biddeford Savings Bank

Case Study


 Biddeford Savings

Biddeford Savings Bank Reduces its Federal Reserve Balance from $1.7 Million to Zero Leveraging logicpath’s Deposit Reclassification

Who:  Headquartered in Biddeford, Maine, Biddeford Savings Bank serves customers throughout the communities of Biddeford, Kennebunk, Scarborough and Waterboro.

Lynn Chase, Vice President and Controller for Biddeford Savings Bank.

What: By reclassifying transaction accounts as non-transaction accounts with logicpath’s Deposit Reclassification Regulation D retail sweep solution, Biddeford Savings Bank reduced its reserve balance to zero, recovering $1.7 million of Fed-held funds for higher yield investment opportunities.

The Challenge

When Biddeford Savings Bank’s vault cash no longer covered the bank’s reserve requirement, it realized that it was in need of a solution that would significantly reduce its reserve balance while uncovering Fed-held funds for alternative investments and lending. The bank was also wasting valuable time and resources monitoring its liquidity position to ensure it met its $1.7 million reserve requirement.

“We funded our Federal Reserve account to meet our reserve requirement, when we could have been using those funds to invest in higher yielding assets,” said Lynn Chase, Vice President and Controller for Biddeford Savings Bank. “By reducing our reserve requirement, we improved our liquidity position and overall efficiencies.”

 The Solution

Biddeford Savings Bank first heard about logicpath from another community bank within the area that had successfully leveraged the company’s Deposit Reclassification solution to reduce its reserve balance and increase liquidity. Compliant with Regulation D and Federal Reserve Board requirements, logicpath’s Deposit Reclassification is a Regulation D retail sweep solution that reclassifies checking accounts into savings deposits for reporting purposes, which are not subject to reserve requirements. This allows Fed-held funds earning minimal interest to become accessible for diversified loans and higher yield investments.

logicpath provided Biddeford Savings Bank with a detailed implementation plan to make the Deposit Reclassification implementation process as seamless as possible. logicpath also compiled all of the necessary internal and external disclosure communication materials regarding Deposit Reclassification for Biddeford Savings Bank’s staff to help alleviate any concerns, as well as prepare its staff to appropriately address any customer inquiries if needed.

“The logicpath team was incredibly supportive from the beginning. They have a well-structured implementation plan that keeps the process moving,” said Chase. “We were concerned about how our customers would react to the required disclosure letter, but the logicpath team prepared us to address any customer inquiries. They truly wanted to help us succeed. As a result, the implementation was smooth.”

 The Results

Since implementing logicpath’s Deposit Reclassification, Biddeford Savings Bank has reduced its reserve requirement from $1.7 million to zero, eliminating the need to monitor its liquidity to meet reserve requirements. Additionally, freeing these low-earning, non-liquid funds from the Federal Reserve Bank enables Biddeford Savings Bank to use these funds for lending and higher yield investments – creating new and permanent revenue stream for the bank.

“Thanks to logicpath’s Deposit Reclassification, we no longer have to monitor our liquidity to ensure our reserve requirement, which has made our bank more efficient,” said Chase. “With interest rates poised to rise, an increased liquidity position allows our bank to better manage the impact and take advantage of opportunities.”

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About Biddeford Savings Bank

Biddeford Savings Bank is an independent, community-focused mutual savings bank founded in 1867 with offices in Biddeford, Kennebunk, Scarborough, and Waterboro, Maine. Biddeford Savings Bank is known for its excellent customer service and its citizenship, and is an Equal Housing Lender and Member FDIC. To learn more, visit


About logicpath

Atlanta, Ga.-based logicpath provides software solutions and analytics to financial institutions and retail organizations. logicpath proudly services the needs of more than 1,500 clients in 50 states and Canada by providing “Smart Solutions that Make Dollars and Sense.” logicpath is the designer of C3 Financial, a web-based cash forecasting and management software. logicpath also pioneered Deposit Reclassification, a Regulation D retail sweep program designed to eliminate reserve balances. logicpath’s solutions improve earnings, efficiencies, risk management and operations.