FOR IMMEDIATE RELEASE: January 24, 2012
CONTACT: Kevin Donnellan
PHOENIX – As Arizona’s responsible banker and chief investment officer, State Treasurer Doug Ducey announced that in 2011 the office doubled its investment in local banks and credit unions through its deposit bid program. There is currently more than $100 million invested with ten Arizona banks, up 100 percent from the year prior.
“We made great progress expanding our relationship with community banks and credit unions in 2011, and will commit again in 2012 to investing up to $250,000 each month, per qualifying institution,” stated Treasurer Ducey. “Our goal is to protect the tax payer’s money and maximize yield. Local banks and credit unions with competitive rates help us do that while giving the state an opportunity to put tax dollars to work in our own backyard.”
Participating banks in the program include Alliance Bank of Arizona, Alerus Financial, Arizona Business Bank, First National Bank of Scottsdale, M&I Bank, Meridian Bank, Metro Phoenix Bank, Pinnacle Bank, Republic Bank of Arizona and West Valley National Bank.
Each month, the Treasurer’s Office entertains bids from local banks and credit unions for the placement of up to $250,000 in cash per institution for either one-month, three-month, six-month, one-year, two-year or five-year products that are fully insured with the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Share Insurance Fund (NCUSIF).
Minimum qualifications for bidders require:
- Arizona deposits of at least $10 million
- For banks a Capital Leverage Ratio of at least six percent in the previous quarter
- For credit unions a Prompt Corrective Action Net Worth Ratio of at least six percent in the previous quarter
Local institutions are encouraged to quote rates for all maturities they offer. Once bids are received, the Treasurer’s Office will notify each institution if their bid is accepted. For 2012, bids can be emailed to cdbid@aztreasury.gov by the close of business on:
January 25th, February 23rd, March 26th, April 24th, May 24th, June 25th, July 25th, August 27th, September 24th, October 25th, November 26th and December 21st.
Additional information can be accessed by visiting www.aztreasurer.gov/localBankProgram.html.
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