Overnight Investments, Repurchase Agreements

Put Your Company’s Money To Work

Overnight Investments, also called Repurchase Agreements, maximize your operating funds by literally putting every available dollar to work. First Financial’s Overnight Investments are highly liquid and fully collateralized by government securities. Repurchase Agreements are perfect for larger businesses that maintain a high cash balance.

Make Every Dollar Count

By sweeping funds from your commercial checking account into overnight investments, all of your money is put to work either covering checks or earning interest.

Manage Liquidity and Investments

Cash flow, credit management and investment maximization all contribute to the financial success of your business. First Financial has a variety of liquidity and investment management solutions for producing advantageous returns. We offer numerous sweep accounts, with different benefits, including Zero Balance Accounts (ZBAs), Automated Repurchase Agreement Sweeps (Repo), and Deposit Account Sweeps. Our experts will work with you to determine the best combination of accounts to achieve your liquidity and investment goals.

Repurchase Agreement Sweep Account

An automatic transfer, called a sweep, moves excess balances out of your checking account into selected internal Repurchase Agreement accounts and back into your checking account as needed. Your company gains investment earnings without sacrificing liquidity of funds.

How does a Repurchase Agreement Sweep work?

Together, we determine the appropriate balance to be maintained in your checking account to cover daily activity and offset bank service charges. Each day, excess balances are transferred in $10,000 increments into an internal Repurchase Agreement account. As your cash requirements necessitate, money is swept from the Repurchase Agreement account back to your checking account in $10,000 increments.

Who can benefit from a Repurchase Agreement Sweep?

  • Businesses that often have idle, excess account balances
  • Businesses that want to earn interest on their available cash
  • Businesses that need liquidity of funds
  • Businesses that lack the time or staff to actively manage their accounts on a daily basis

Overnight Investment Features

  • Money is swept in and out of your Repurchase Agreement account in increments of $10,000 automatically
  • Excess balances are invested in bank-owned securities, pledged on your behalf
  • Funds are returned to your checking account as needed
  • Daily account balance information is available through Business Online Banking
  • Overnight investments may also be used in conjunction with "loan sweep" or target-balance accounts

Repurchase Agreement Benefits

  • Time and cost savings, because you don’t have to dedicate staff to monitoring your accounts
  • Increased investment earnings, because your excess balances earn interest each day they are invested
  • Excellent liquidity, because invested funds are transferred to your checking account as needed to prevent overdrafts

For more information about Repurchase Agreements, contact our Treasury Management Department by calling 877-627-7201 or emailing TMClientSupport@ffin.com.