Cash Management

Automatic "Sweep" Accounts (Note that funds swept into an investment account or Repurchase Agreement (Repo) are not FDIC insured)

"Sweep" arrangements are the automatic movement of funds between two accounts of the same customer within Community First Bank. An example of a typical sweep account arrangement would be a customer who wishes to maintain a $10,000 target amount in an operating account and wishes any deposited funds greater than the target amount to be moved automatically to an investment or repurchase agreement account. Our data processing system will post all debit or credit transactions to the operating account and determine an account balance. If the account balance is less than the target amount, funds will be moved out of the investment account to raise the operating account balance to the target amount. If the account balance is greater than the target amount, excess funds will be automatically invested.

The "target" amount can be set at any mutually-agreed level. Sweep agreements are commonly used for:

  • Transfers between an operating account and an investment account.
  • Transfers between an operating account and a payroll account.
  • Transfers to protect one account from a possible overdraft or to maintain a desired minimum balance.

Sweep arrangements often include a Repurchase Agreement account. This allows for unlimited withdrawals without violating Federal Reserve Regulation D rules, limiting the number of withdrawals per month for money market or savings accounts.

Coin & Currency Services

Community First Bank offers rolled coin and strapped currency for our customers' use. To have your coin/currency order ready when you get to the bank, click here for a form to complete and fax.

Electronic Data Interchange (EDI) Services

Community First Bank has the ability to electronically initiate transfers of money involving an account at the financial institution. This service is also referred to as Electronic Funds Transfer Agreement. The use of EDI to transmit invoice data and payments can improve a company's cash flow and may increase the amount of working capital. Pre-authorized ACH debits and credits fall under this service. This includes direct deposit of MasterCard, Visa, and Discover bankcard transactions.

Repurchase Agreements

A Repurchase Agreement (Repo) is the sale of a U.S. Government or U.S. Government Agency security to a customer with an agreement to buy the same security back at a later time. The bank pays the customer a fee (interest) for the time that the bank uses the customer's funds. A Repo may be set up with daily or extended term maturities. A daily Repo matures each day but is automatically renewed for a new amount the next day.
The funds in the customer's account are not considered deposits. Because of this, Repurchase Agreements are not FDIC insured transactions. Customer funds are not at risk, though, because the customer has an interest in a government bond for the duration of the agreement.

Repurchase agreements are most often used by customers who:

  • Have deposits that would exceed the limits of FDIC insurance and/or,
  • Wish to sweep funds daily from an operating account to an interest-earning investment account.

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