ATLANTA (Nov. 29, 2018) - LogicpathTM announces two banks implement its Deposit Reclassification retail sweep solution: $1.3 billion, Bank Iowa based in West Des Moines, Iowa; and $421 million, BOM Bank based in Natchitoches, La.
Logicpath’s Deposit Reclassification solution permanently recovers a bank’s Federal Reserve balance and is compliant with all Federal Reserve Board requirements. Low-earning funds, previously held at the Fed earning minimal interest become accessible for diversified loans and investments; increasing returns for the financial institution.
“One of our main goals is to increase our overall liquidity,” said Mark Lipa, CFO of BOM Bank. “Our reserve requirement increased significantly due to recent acquisitions. By implementing Deposit Reclassification, we freed up more than $6.8 million and eliminated the need to borrow Fed Funds.”
Bank Iowa has seen significant results and recovered around $25.2 million through the implementation of Deposit Reclassification.
“Maintained reserved balances behave like an illiquid asset, but once removed, these funds represent real capital that can be used to fund loans within a bank’s community,” said Douglas Ceto, president and CEO of logicpath. “With interest rates predicted to continue to rise, and by leveraging Deposit Reclassification, BOM Bank is better situated to improve their liquidity, and are primed for the opportunities to deploy it into profitable loan and investment portfolios.”
About BOM Bank
BOM was established in 1903 in Montgomery, Louisiana, and has a strong tradition of supporting the northwest Louisiana communities in which it operates. BOM combines hometown values with modern, full-service personal and business banking products. BOM offers convenient locations throughout Bienville, Bossier, Caddo, Grant, Natchitoches, Rapides and Sabine parishes. For more information, visit bofm.com.
Atlanta based logicpath provides innovative software solutions and analytics to financial institutions, and is trusted by thousands of clients across the United States and Canada. Logicpath developed C3 Financial, a SaaS cash forecasting and management software, and Deposit Reclassification, a program designed to eliminate reserve balances. With the client’s success and profitability in mind, logicpath's solutions improve earnings, efficiency, risk management and operations. For more information call 1.877.495.0687 or visit www.logicpath.com.