Banking Services

Summary (Newest Update)

Background The City of Midland, Texas is initiating a Request for Proposals (RFP) to select a bank to serve as the primary depository for the investment of City funds and to provide commercial banking services. The selected bank will also serve as a secondary depository or depositories. The goal is to ensure the highest degree of safety and security for public funds, timely fulfillment of City obligations, and maximization of returns on cash balances. This process will culminate in a depository agreement for a term of five years, compliant with Texas state statutes. Work Details The banking services required by the City include: - Management of a primary cash concentration account ('Pooled Cash') for receipts and disbursements. - Maintenance of Zero Balance Accounts (ZBA) for payroll and NSF clearing. - Provision of online banking services including wire transfers, immediate crediting of state warrants, detailed transaction reports, electronic funds transfer capabilities, positive pay services, and check imaging. - Safekeeping services for city investments with collateralization requirements at 102% above FDIC insurance coverage. - Monthly reporting on pledged collateral including description, par value, market value, and CUSIP numbers. - Customer service support with local relationship management and monitoring of service performance. Period of Performance The contract will commence on September 1, 2026, following the termination of the old contract on August 31, 2026. The duration of the contract is set for five years. Place of Performance The banking services will be performed within the city limits of Midland, Texas. Bidder Requirements Bidders must be federal or Texas chartered banks with a main office in Midland and must be members of the Federal Reserve System and FDIC. They must comply with all applicable Texas regulations regarding public funds. Proposals must include an audited financial statement, CRA rating certification, and current debt ratings from independent agencies. Additionally, banks must confirm their ability to meet collateral requirements and provide detailed customer service plans.