State Treasurer Doug Ducey announced that in 2011 his office doubled its investment in local banks and credit unions through its deposit bid program. There is currently more than $100 million invested with 10 Arizona banks, up 100 percent from the year prior.
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, banks with a capital leverage ratio of at least 6 percent in the previous quarter, and credit unions with a prompt corrective action net worth ratio of at least 6 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 email@example.com. Additional information can be accessed by visiting www.aztreasurer.gov/localBankProgram.html.