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Board reviews escrow report and votes to invest $500,000 in 12‑month CD
Summary
First Bank & Trust presented the July–September escrow report, including interest earned and outstanding checks; the board voted to invest $500,000 in 12‑month brokered CDs (split to maintain FDIC coverage) at about 4%.
The Virginia Gas and Oil Board received the First Bank & Trust quarterly escrow report covering July through September and voted to invest $500,000 from the money market account into a 12‑month brokered certificate of deposit to increase yield.
The bank’s escrow representative (identified in the meeting as Miss Manny) summarized the quarter: interest earned for the period included an amount reported as $68,478.35; outstanding checks were reported at $7,933.94; and the escrow accounts contain both money-market funds and approximately $2 million tied up in brokered CDs maturing in April and July 2026.
Board members discussed short‑term rate trends and whether to keep a $2.5 million cash buffer in the money‑market account. After discussion the board moved and approved a motion to invest $500,000 for 12 months at about 4 percent, with staff noting the board typically splits CD purchases into at least two $250,000 certificates to retain FDIC insurance coverage.
The escrow agent said daily rate fluctuations mean the final executed rate may vary slightly from the target. The board will revisit investment strategy at the next quarterly review and monitor the set of CDs maturing in April 2026.
No public comments were offered during this agenda item.
