Governor  Dannel P. Malloy
 

Cash Management

Community Banking Program

The Treasurer’s Community Bank and Credit Union Initiative was established to support Connecticut’s community banks and credit unions and to enhance their ability to promote the economic and social health of the communities they serve. These financial institutions offer locally-originated loans to individuals and small-to-medium sized companies and provide locally-oriented banking services in underserved markets. Connecticut General Statute 3-24k, a result of legislation proposed by the Treasurer's Office, allows the Treasurer to establish a program for the investment of up to $100 million with community banks and credit unions.

Under the initiative, community banks and credit unions, with assets not exceeding $500 million and domiciled in Connecticut, are invited to compete for a targeted pool of investments that the Treasury will make in certificates of deposit. The Treasurer’s Office is pursuing this initiative in recognition of the valuable roles community banks and credit unions play in their communities.

Please review the bid schedule, program guidelines, the required investment agreement and bid form below for more information about the program.

Recent Results:

CD Amount

Bid Date

Settlement Date

Maturity Date

Winning Bid

$2.0 million

March 9, 2017

March 10, 2017

June 9, 2017

0.900%

Beginning in May 2006, our investments in the Community Bank and Credit Union Initiative program have totaled $480.1 million.

Bids are compared based on interest to be paid at maturity. For consistency, the Treasurer’s Office recalculates yields of the winning bids by the following method: interest at maturity, divided by the term of the investment principal, times 365 days, divided by the term of the investment.

Next Competitive Bidding Auction

The next competitive bidding auction for the Community Bank and Credit Union Initiative will be held on Thursday, April 6, 2017 (see table below).

Financial institutions may bid on three, six, nine and twelve- month certificates of deposit, per the table below. Bids will be accepted between 8:00 and 9:30 a.m. on Thursday, April 6, 2017. Contact Assistant Treasurer for Cash Management Lawrence Wilson for additional information. Financial institutions should feel free to bid on multiple pieces and may limit their maximum investment by indicating the largest total amount they would like to receive.

CD Amount Bid Date Settlement Date Maturity Date
$2 million April 6, 2017 April 7, 2017 May 5, 2017
$4 million April 6, 2017  April 7, 2017  May 5, 2017
$2 million April 6, 2017 April 7, 2017 June 7, 2017
$4 million April 6, 2017 April 7, 2017 June 7, 2017
$2 million April 6, 2017 April 7, 2017 July 7, 2017
$4 million April 6, 2017  April 7, 2017  July 7, 2017
$2 million April 6, 2017 April 7, 2017 October 6, 2017
$4 million April 6, 2017 April 7, 2017 October 6, 2017
$2 million April 6, 2017 April 7, 2017 January 5, 2018
$4 million April 6, 2017 April 7, 2017 January 5, 2018
$2 million April 6, 2017  April 7, 2017  April 6, 2018
$4 million April 6, 2017 April 7, 2017  April 6, 2018

 

Program Documents

The investment and security agreements should be returned to the Office of the State Treasurer, Cash Management Division by April 5, 2017 if you would like to participate in the April 6, 2017 competitive bidding auction (see separate documents for banks and credit unions below).

Community Bank and Credit Union Investment Program -  Guidelines

 

Documents for Banks

The bank investment agreement and the applicable bank security agreement should be returned to the Office of the State Treasurer, Cash Management Division by April 5, 2017 if you would like to participate in the April 6, 2017 competitive bidding auction.

Community Bank and Credit Union Investment Program - Bank Investment Agreement

Community Bank and Credit Union Investment Program - Bank Security Agreement

Community Bank and Credit Union Investment Program - Bank Security Agreement with Eligible Collateral Held by Federal Reserve Bank/Federal Home Loan Bank

Community Bank and Credit Union Investment Program - Bank Bid Form - Bids must be submitted via this official bid form.

Documents for Credit Unions

The credit union investment agreement and credit union security agreement should be returned to the Office of the State Treasurer, Cash Management Division by April 5, 2017 if you would like to participate in the April 6, 2017 competitive bidding auction.

Community Bank and Credit Union Investment Program - Credit Union Investment Agreement

Community Bank and Credit Union Investment Program - Credit Union Security Agreement

Community Bank and Credit Union Investment Program - Credit Union Bid Form - Bids must be submitted via this official bid form.