Northstar Bank Selects CetoLogic’s Deposit Reclassification to Transform Idle Funds Into Interest-Earning Income


ATLANTA, June 10, 2014 – CetoLogic, a provider of software and analytics for financial institutions and retailers, announced today that Bad Axe, Mich.-based Northstar Bank will implement its Deposit Reclassification solution to transform the $475 million asset bank’s idle funds into interest-earning income and community reinvestment opportunities. 

 Deposit Reclassification is a retail sweep program that transforms transaction account balances into non-transaction accounts to reduce reserve requirements and enable financial institutions with more investable funds.

 “Northstar Bank’s $7.6 million reserve requirement was earning minimal interest and prohibiting us from expanding our investment income within our community,” said Amy Stern, chief financial officer of Northstar Bank. “With CetoLogic’s Deposit Reclassification solution, we will be able to efficiently reduce our reserve requirement while simultaneously converting funds into customer-focused interest-earning assets.”

 In compliance with Federal Reserve Regulation D, Deposit Reclassification reclassifies 60-80 percent of all checking accounts into savings deposits. Funds previously held at the Fed – which are low-earning and non-liquid – are now available for loans and other investments; creating new and permanent revenue for banks and credit unions. 

 “As the economy continues to stabilize, interest rates will inevitably rise again; providing financial institutions with investment opportunities that can be seized today to create incremental revenue gains,” said David Austin, vice president of CetoLogic.  “Deposit Reclassification will enable Northstar Bank to increase revenue and provide the bank with more liquidity to meet the needs of its growing customer base.” 
About Northstar Bank
Northstar Bank is a full-service, community bank with a current asset level of $475 million. Northstar Bank continues to be a top-rated bank in Michigan and has nine branches. With a full range of financial services including commercial banking, residential mortgage lending and wealth management, Northstar Bank is committed to providing exceptional service and value to their customers, employees, community and shareholders. Northstar Bank guides the way with service, leadership and trust. They are dedicated to building successful relationships within their communities. For more information about Northstar Bank, please call 989-269-8077 or visit their website at

About CetoLogic
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.