CIBM Bank
Case Study
Where: Champaign, IL
C3 Financial Locations: 18
Client Since: November 2020
Branch managers and teller supervisors at CIBM Bank were relying on security limits, personal knowledge, and spreadsheets to determine currency orders and ship-outs. The bank aimed to optimize the use of idle currency in a higher interest rate environment. They found that they were carrying an excess of cash in their Loomis vaults. Additionally, the cash ordering process was decentralized, involving three different vendors and processes – PNC, Loomis, and FRB.
CIBM Bank achieved accurate forecasting for cash orders and deposits based on confidence levels that logicpath helped the bank choose.
“The performance reviews logicpath put together after we were live are very insightful,” said Jim Singleton, SVP/Facilities-Security Officer at CIBM Bank. “The logicpath team really teaches us about how the application forecasts and if it is doing a good job.”
C3 Financial combines the CIBM Bank team’s grassroot knowledge of their location and applies the true data and mathematics.
“We have an average denomination confidence level setup in C3 Financial of 91.57%, and the system gives outputs even greater than expected at 92.9%. The logicpath support team sets this up for us, explains it to us in layman’s terms and are responsive to my requests,” said Singleton. “Logicpath is truly a partner I can count on and if there is an issue, I know they will solve it and get back to me quickly.”
CIBM Bank’s suspicions of excess cash were confirmed and varied by month, as evident in the cash ending vs. usage report and C3 Financial’s guidance vs. actual residual report. These reports and performance reviews showed that the bank had 21.3% excess currency, varying by location and month from 8.1% to 44.7%.
“The orders and deposits can be reviewed in a central view, and then our order data pushes automatically to Loomis at 11:55 ET on our ordering days,” said Singleton. “We have saved about 75% of the time we were spending on cash management and don’t have to worry about currency limits any longer.”
The CFO, Security Officer, and Retail Operations team at CIBM Bank were looking for cash management help and a solution to their current time-consuming processes. The team wanted to centralize their cash ordering and depositing procedures, as well as utilize funds better in a higher interest rate environment. They felt their team and their cash partners used too many spreadsheets and held too much currency in their cash vaults. That’s when logicpath was brought in.
Logicpath eliminated CIBM Bank’s need for cash ordering and depositing spreadsheets. To do this, logicpath receives automatic, daily files from CIBM Bank to populate the data needed to forecast currency orders and deposits. The data files contain information from their teller platform, Jack Henry Vertex.
CIBM bank has branch locations, ATMs onsite and offsite, branch vaults, teller drawers, a central vault, cash recyclers, and coin machines. These locations had 3 different ordering processes which included phone calls to PNC as well as manual entry and 10-key typing to the FRB and Loomis.
To address this issue of varying vendors and processes, logicpath’s cash inventory management software, C3 Financial, was used. Here’s how the process goes: C3 Financial takes CIBM Bank’s daily data, forecasts the cash orders and deposits based on approximately 68 different factors per denomination, CIT delivery schedule, holidays, and special events. From there the order data is automatically pushed to Loomis on the bank’s behalf. Instead of 10-key typing into the FRB by denomination, CIBM Bank now uses a Fed Extract file for easy upload with their FRB credentials.
CIBM Bank is a wholly owned subsidiary of CIB Marine Bancshares, Inc. In 1985, a small group of investors acquired Sidney Bancorp, Inc., and its bank subsidiary, Sidney Community Bank, in Sidney, Illinois. Through a series of transactions and consolidations, that bank eventually became Central Illinois Bank and acquired Arrowsmith State Bank in 1991. The former Arrowsmith State Bank charter was established in 1920 and is the Illinois commercial bank charter that CIBM Bank operates under today. Over the next 25 years, CIBM went through a series of expansion activities that led to their footprint today.
Georgia-based logicpath provides software solutions and analytics to financial institutions and retail organizations. Logicpath has proudly served the needs of more than 2,300 clients in 50 states and Canada by providing “Smart Solutions that Make Dollars and Sense.” The foundation for logicpath originated in 2008 when the company emerged out of its sister company, Ceto and Associates, as a software solutions company. In 2020, logicpath was purchased by Loomis Armored, US and remains its own company.