– Hometown Jefferson Security Bank and two other banks took home
maximum $5 million deposits, during the Board of Treasury Investments’
Wednesday, Oct. 14 certificate of deposit auction.
About 75 students from Jefferson and Washington high schools, and
some from host site Shepherd University, watched bids come in on a
screen at the Robert C. Byrd Center for Legislative Studies. Treasurer
John Perdue whipped up enthusiasm, providing explanation and
high-energy commentary as the action unfolded.
On-line certificate of deposit auctions are designed to invest state
funds in banks with a state presence. The object is to provide lending
capital and economic stimulation. The largest deposits are $5 million,
the smallest $100,000.
Interest rate bids are ranked from highest to lowest -- with the
corresponding bid amount – for exactly 30 minutes. Bank reps only know
if they are “in” or “out” of the money, meaning their bids either rank
high enough to help comprise the total to be auctioned or they don’t.
Banks winning six-month deposits Oct. 14 were:
- Fifth Third Bank, Huntington, $5 million, .395 percent
- Jefferson Security Bank, Shepherdstown, .$5 million, .325 percent
- Harrison County Bank, Lost Creek, $3 million, .325 percent
- First Community Bank, $5 million, .323 percent
- Freedom Bank, Inc., Belington, $2 million, .315 percent
Through the auctions, the BTI has earned $1.3 million more in
interest earnings above the going Treasury bill rate. The Oct. 14
auction netted the board nearly $19,000 in such additional interest.
The board has put on deposit with state banks $574 million since the
auctions began in May of 2006.
A conspicuous absence among the winners Oct. 14 was BB&T. The
Charleston bank did not come away with any money, the first time that
has happened in 23 auctions. Only one other time has BB&T not won
the full $5 million.