CHARLESTON – The state Board of Treasury Investments placed a cumulative $14.5 million on deposit with three state banks, during the board’s most recent certificate of deposit online auction.
Placing successful interest rate bids for $5 million were Jefferson Security Bank of Shepherdstown and WesBanco of Wheeling. Huntington National Bank of Charleston placed three winning bids adding to $4.5 million. Certificate terms are for one year.
Banks are given precisely 30 minutes to bid online. A representative places bids, only knowing if the bid is at a high enough interest rate to warrant the money. All three banks winning money in the January auction bid .4 percent.
The latest awards continue to inch the BTI toward the $1 billion mark placed on deposit with state banks since the initial auction in 2006. Altogether, BTI administrators have awarded $840.3 million in winning bids. The intention is to pump money into local economies, providing capital for loans and other economic development initiatives.
West Virginia’s treasury has benefited from the competitive bidding, earning $9.3 million in interest and $1.4 million more than if it had simply invested in U.S. treasury bills. The board is an arm of State Treasurer John Perdue’s office.