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 $300 million with community banks and credit unions. The Treasurer's Office is pursuing this initiative in recognition of the valuable roles community banks and credit unions play in their communities.
Under the initiative, community banks and credit unions with assets not exceeding $2 billion and domiciled in Connecticut are invited to compete for a targeted pool of investments in the form of certificates of deposit. Beginning September 30, 2024, the $2 billion asset cap will be adjusted to reflect the increase in average loan growth of eligible institutions. This adjustment is to take place annually.
Please review the bid schedule, program guidelines, the required agreements and bid form below for more information about the program.
Recent Results:
| CD Amount | Bid Date | Settlement Date | Maturity Date | Winning Bids |
| $4,000,000.00 | April 11, 2024 | April 12, 2024 | October 04, 2024 | 5.637% |
| $500,000.00 | April 11, 2024 | April 12, 2024 | January 10, 2025 | 5.330% |
Since May 2006, investments in the Community Bank and Credit Union Initiative program have totaled $725.5 million.
Bids are compared based on interest paid at maturity. For consistency, the Treasurer's Office recalculates yields by the following method: interest at maturity divided by investment amount, times 365 days, divided by investment term, times 100.
Next Competitive Bidding Auction
The next competitive bidding auction for the Community Bank and Credit Union Initiative will be held on Thursday, May 09, 2024 between 8:00 and 9:30 a.m. (see Bid Schedule below).
Financial institutions may bid on three, six, nine and twelve- month certificates of deposit, per the table below. Contact Marc Gagnon 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.
Bid Schedule:
| CD Amount | Bid Date | Settlement Date | Maturity Date |
| $5 million | May 09, 2024 | May 10, 2024 | August 09, 2024 |
| $5 million | May 09, 2024 |
May 10, 2024 | November 08, 2024 |
| $5 million | May 09, 2024 | May 10, 2024 | February 07, 2025 |
| $5 million | May 09, 2024 | May 10, 2024 | May 09, 2025 |
Documents for Banks
The bank investment agreement and the applicable bank security agreement must be returned and approved by the Office of the State Treasurer, Cash Management Division in order to participate in a 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.
Document for Credit Unions
The credit union investment agreement and credit union security agreement must be returned and approved by the Office of the State Treasurer, Cash Management Division in order to participate in a 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.