Community Banking Program
BIG NEWS! Beginning October 1, 2026, the Treasurer will have the flexibility to accept interest rates up to 100 basis points below the previous day's U.S. Treasury Bill yield for the same maturity!
Under the initiative, community banks and credit unions - defined by Connecticut General Statute 3-24j and subject to an annual asset cap - are eligible to apply for a targeted pool of investments in the form of certificates of deposit. The asset cap is adjusted each year based on the median loan growth of eligible institutions. The asset cap as of September 30, 2026 is $2.337 billion.
The 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. In recognition of their impact, Connecticut General Statute 3-24k authorizes the Treasurer to establish a program for the investment of up to $300 million of the state's common cash pool with eligible community banks and credit unions.
Please review the program guidelines, along with the required investment and security agreements to learn more about the program.
Recent Results:
| CD Amount | Solicitation Date | Settlement Date | Maturity Date | Winning Bids |
|---|---|---|---|---|
| $5,000,000.00 | October 08, 2026 | October 09, 2026 | January 08, 2027 | 3.230% |
| $2,000,000.00 | October 08, 2026 | October 09, 2026 | April 09, 2027 | 3.310% |
Since May 2006, investments in the Community Bank and Credit Union Initiative program have totaled $873.1 million.
Applications are compared based on interest paid at maturity. For consistency, the Treasurer's Office recalculates yields by the following method: (Interest at Maturity / Investment amount) X (365 / Investment Term) X 100.
Next Competitive Solicitation
Thursday, November 05, 2026 between 8:00 and 9:30 a.m. (see Schedule below).
Financial institutions may submit applications on three-month, six-month, nine-month, one-year and two-year certificates of deposit, per the table below. Contact Marc Gagnon or Jan Hong 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. Awards will be made to the highest-yielding applications above the minimum acceptable rate until each allocation is filled.
Application Schedule:
| CD Amount | Solicitation Date | Settlement Date | Maturity Date | Minimum Acceptable Rate |
|---|---|---|---|---|
| $5 million | November 05, 2026 | November 06, 2026 | February 05, 2027 | |
| $5 million | November 05, 2026 | November 06, 2026 | May 07, 2027 | |
| $5 million | November 05, 2026 | November 06, 2026 | August 06, 2027 | |
| $5 million | November 05, 2026 | November 06, 2026 | November 05, 2027 | |
| $5 million | November 05, 2026 | November 06, 2026 | November 03, 2028 |
Documents for Banks
The agreements below must be returned and approved by the Office of the State Treasurer, Short-Term Investment Unit in order to participate in the competitive solicitation program.
Documents for Credit Unions
The agreements below must be returned and approved by the Office of the State Treasurer, Short-Term Investment Unit in order to participate in the competitive solicitation program.