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American Heritage Federal Credit Union Implements CetoLogic’s Deposit Reclassification, Prepares for Anticipated Reserve Increase

September 3, 2014



ATLANTA--(BUSINESS WIRE)-- CetoLogic, a leading provider of software and analytics for financial institutions and retailers, announced that the $1.4 billion dollar-asset, Philadelphia-based American Heritage Federal Credit Union will implement the company’s Deposit Reclassification solution as a preventative measure against future reserve requirements.

Deposit Reclassification, a retail sweep program, is a Federal Reserve Board acknowledged practice that reduces reserve requirements by reclassifying transaction accounts as non-transaction accounts, which are not subject to reserve requirements. Reserve balances held at the Federal Reserve Bank earn minimal interest, and by reclaiming those funds through Deposit Reclassification, credit unions have the opportunity to reinvest for a higher yield in mortgage and consumer loans.

“American Heritage FCU recently restructured its accounts to better serve our membership, and as result, we expect our reserve balance requirement to increase – decreasing the amount of funds available for new investment and revenue stream opportunities,” said Brian Schmitt, Chief Financial Officer for American Heritage FCU. “With CetoLogic’s Deposit Reclassification, we can maintain our zero reserve balance and continue to use these assets to invest in the communities we serve.”

CetoLogic’s Deposit Reclassification solution permanently recovers financial institutions’ Federal Reserve balance and is compliant with Federal Reserve Regulation D and all Federal Reserve Board requirements. Low-earning, illiquid funds previously held at the Fed earning minimal interest become accessible for diversified loans and investments; increasing returns for financial institutions.

“As the economy continues to strengthen, investment opportunities are increasing for today’s financial institutions,” said David Austin, vice president of CetoLogic. “CetoLogic’s Deposit Reclassification solution enables American Heritage FCU to preserve their liquid funds for investments rather than maintaining low earning balances at the Federal Reserve Bank.”

About American Heritage Federal Credit Union

American Heritage FCU is a $1.4 billion member-owned financial cooperative serving over 700 sponsor companies. It is the 134th largest Credit Union in the Country based on asset size and the 114th Largest Credit Union in the US based on number of members with over 130,000 members and 30 branches in Philadelphia, Bucks and Montgomery Counties. For more information about American Heritage FCU, call 215.969.0777, or visit www.amhfcu.org.

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 or visit their website at www.cetologic.com.





For CetoLogic

Lauren Schuster, 678-781-7209

lauren@williammills.com



Source: CetoLogic


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