ATLANTA, Jan. 6, 2015 – CetoLogic, a leading provider of software and analytics for financial institutions and retailers, continues to see strong market adoption of its Deposit Reclassification retail sweep solution moving into 2015, signing four new financial institution clients including Biddeford, Maine-based Biddeford Savings Bank; Carlinville, Ill.-based CNB Bank & Trust, N.A.; Baytown, Texas-based Community Resource Credit Union; and Edina, Minn.-based Tradition Capital Bank.
CetoLogic’s Deposit Reclassification reduces reserve balance requirements by reclassifying checking accounts into savings deposits, enabling low-earning and non-liquid funds previously held at the Federal Reserve to become available for loans and other higher yield investments opportunities – creating an additional and permanent revenue stream for financial institutions.
“CetoLogic’s Deposit Reclassification solution will enable us to reclaim our $6 million reserve balance from the Fed, converting these idle funds into liquid assets that we can leverage for more meaningful investment opportunities,” said Maureen Oswald, senior vice president of Operations and Cashier for CNB Bank & Trust, N.A. “Additionally, leveraging CetoLogic’s Deposit Reclassification to reduce our reserve balance better positions our institution to meet our growing loan demand while preparing for a potential increase in borrowing costs.”
Compliant with Regulation D and Federal Reserve Bank requirements, financial institutions such as Community Resource Credit Union can also leverage CetoLogic’s Deposit Reclassification to maintain Regulation D compliance while providing members greater account flexibility, without fearing penalties for exceeding monthly money transfer limits.
“As interest rates rise in the coming months, so will borrowing costs. It is prudent to access all funding sources today in preparation of change for tomorrow,” said David Austin, vice president of CetoLogic. “Deposit Reclassification is a cost beneficial way to access an additional source of liquidity on a permanent and recurring basis to maximize the margin realized on loans or other investments.”
About CNB Bank & Trust, N.A.
Headquartered in Carlinville, Illinois, CNB Bank & Trust, N.A., was founded in 1854, making them Illinois’ Oldest Bank. CNB’s focus has, and will remain, the agricultural communities in Central Illinois. Expansion, through acquisition, has allowed CNB to expand their footprint into the suburbs of St. Louis and Chicago. With 13 locations, their vision is to earn the distinction of being perceived by shareholders, residents and competition as the premier financial institution in the markets they serve. CNB strives to attain this goal by offering “Big Bank” products with the Community Bank service their customers expect. CNB is a privately held financial institution with just over $717 million in assets as of December 31, 2013.
Atlanta, Ga.-based CetoLogic provides software solutions and analytics to financial institutions and retail organizations. CetoLogic proudly services the needs of more than 1,500 clients in 50 states and Canada by providing “Smart Solutions that Make Dollars and Sense.” CetoLogic is the designer of C3 Financial, a web-based cash forecasting and management software. CetoLogic also pioneered Deposit Reclassification, a retail sweep program designed to eliminate reserve balances. CetoLogic’s solutions improve earnings, efficiencies, risk management and operations. For more information about CetoLogic’s solutions, call 1.877.495.0687.