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 $2.0 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 is adjusted annually to reflect the increase in median loan growth of eligible institutions.   

Please review the program guidelines, along with the required investment and security agreements to learn more about the program.

 

Recent Results:

CD Amount Bid Date Settlement Date Maturity Date Winning Bids
$5,000,000.00 November 07, 2024  November 08, 2024  November 07, 2025 4.362%
$5,000,000.00
November 07, 2024 
November 08, 2024  February 07, 2025 4.717%
$4,000,000.00 November 07, 2024  November 08, 2024 May 09, 2025 4.413% 
$500,000.00 November 07, 2024  November 08, 2024 August 08, 2025 4.380%

Since May 2006, investments in the Community Bank and Credit Union Initiative program have totaled $758 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

Thursday, January 09, 2025 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 January 09, 2025 January 10, 2025 April 11, 2025
$5 million January 09, 2025
January 10, 2025 July 11, 2025
$5 million January 09, 2025 January 10, 2025 October 03, 2025
$5 million January 09, 2025 January 10, 2025 January 09, 2026

 

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 a competitive bidding auction.

Program Guidelines

Bank Investment Agreement

Bank Security Agreement

Bank Bid Form 

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 a competitive bidding auction.

Program Guidelines

Credit Union Investment Agreement

Credit Union Security Agreement

Credit Union Bid Form