The Sacramento County Department of Finance accepted applications for the Community Reinvestment Act (CRA) Program twice in 2022, once in March and again in September. Through the CRA Program, County Treasury invests money in financial institutions with a local presence that meets the credit needs of the community.
The Department of Finance actively reaches out to all banks operating at least one branch in the County to let them know that the CRA Program is accepting applications.
“We once again awarded three banks with deposits, but this year the deposits were a mix of six-month and one-year Certificates of Deposit (CDs),” said Dave Matuskey, Sacramento County Investment Officer. “Each bank received $20 million for a total investment of $60 million. In 2021, the three banks awarded made a total of 574 mortgage-related and small business loans for a total of $94,381,315 in low- and moderate-income neighborhoods.”
The CRA Program authorizes the placement of public deposits from the County’s Pooled Investment Fund
in fixed-rate certificates of deposit with qualified financial institutions that meet the credit needs of the community, including credit unions and community banks.
The size of the deposit the County makes is dependent on the level of lending activity in low-and moderate-income neighborhoods in Sacramento County.
The three banks that were awarded deposits this year are:
• Bank of the West (1-year CD)
• East West Bank (6-month CD)
• Five Star Bank (6-month CD)