Three Banks Announce Implementation of CetoLogic’s Deposit Reclassification Solution, Freeing Up an Average of $11 Million in Liquidity


ATLANTA, July 16, 2015 – CetoLogic, a leading provider of software and analytics for financial institutions and retailers, announced that three banks have successfully implemented its Deposit Reclassification retail sweep solution, including: $585 million, Girard, Kan.-based Girard National Bank; $580 million, Austin, Texas-based Horizon Bank; and $526 million, Hull, Iowa-based Iowa State Bank.

Deposit Reclassification is a Federal Reserve Board-acknowledged practice that reclassifies a financial institution’s transaction accounts as savings deposits, which are not subject to reserve requirements. Reducing reserve balance requirements enables financial institutions to convert idle Fed-held funds into interest-earning assets, creating new and permanent revenue streams.

“We previously relied on a retail sweep solution for several years, but we no longer need it when rates dropped. With interest rates expected to rise and $7 million tied up at the Federal Reserve, we wanted to be proactive and uncover those funds to support our agriculture and consumer loan portfolios,” said Diana Fisher, Chief Operations Officer for Girard National Bank. “Deposit Reclassification has strengthened our liquidity position to better prepare us to fuel future loan demand when interest rates do increase.”

Horizon Bank experienced similar results, uncovering $19.6 million in additional liquidity; and Iowa State Bank uncovering $6.4 million, all through Deposit Reclassification.

“Most financial institutions are currently sitting on liquidity due to past economic conditions, whether it is stored in a vault or at the Federal Reserve, and these funds are idling with minimal return as bankers wait for safe and short-term opportunities to present themselves,” said David Austin, vice president of CetoLogic. “With interest rate increases in the near future, financial institutions must be ready to maximize balance sheet assets to their fullest to combat the impacts of margin compression. Deposit Reclassification gives a financial institution access to 100 percent of their lowest funding source - checking deposits.”

About Girard National Bank
Girard National Bank, with branches in eleven communities across Kansas and Southeast Colorado, is committed to providing its customers high quality, competitive financial services for personal, business, and agricultural needs.  Girard National Bank offers a variety of traditional and innovative financial products and services through its branch locations, secondary market mortgage lending operation, and online and mobile banking services.  The bank also provides support in many forms to help its local communities thrive and maintain local residents’ quality of life.  For additional information, please visit

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 is also responsible for Deposit Reclassification, a Regulation D retail sweep program designed to eliminate reserve balances. CetoLogic’s pALMs is a web-based asset/liability management simulation software that provides accurate and detailed analysis asset-by-asset and liability-by-liability. These solutions improve earnings, efficiencies, risk management and operations. For more information about CetoLogic’s solutions, call 1.877.495.0687 .