Liberty Bank for Savings FAQs
In recent days, there has been much in the media about the safety and soundness of U.S. financial institutions. As a local institution with a 110 year track record of protecting our customers' money, we at Liberty Bank want you to have confidence in where you bank. While it may sound a bit dull, safe and sound is simply the way we do business.
Following are answers to some commonly asked questions about Liberty Bank and community banks in general.
| Q: | Why should I bank at a community bank like Liberty Bank for Savings? |
| A: | At Liberty Bank we strive to put our customers first, with products and services tailored to your needs. We keep the customer in mind when making financial decisions ranging from the future of the bank to mortgages. As a community bank we reinvest in what is best for our neighborhoods. |
| Q: | What is the difference between Liberty Bank and large financial institutions? |
| A: | Many banks these days use fee income to fatten the bottom line. Check around. You'll find most of Liberty Bank's services either don't carry a fee... or maintain one that's at or near the lowest in the market. We also offer a variety of products that are competitive, if not better than large financial institutions. Furthermore, you will always be assisted at Liberty Bank by a knowledgeable and experienced bank employee. |
| Q: | How do I know that Liberty Bank is financially strong? |
| A: | Liberty Bank is well-capitalized, with over $153 million dollars in capital. Capital serves as a "buffer" against future losses. Our bank is well-positioned to handle economic downturns, and continue to serve your needs without interruption. Statement of Condition |
| Q: | What is a capitalization ratio? |
| A: | Capital is one way to measure strength and stability in a bank and it represents the extra reserves a bank has on hand. The FDIC considers a well capitalized bank as having 6% capital. Liberty Bank's capital as of February 29, 2008 was over $153 million, which is equivalent to a capitalization ratio of more than 20%. Liberty's capital serves as a reserve for any losses that the bank may incur. This represents more than 3 times the required capital ratio that the FDIC requires a bank to hold. Our strong capital position is evidence of the focus that Liberty places on safe and sound business practices. Statement of Condition |
| Q: | How is Liberty Bank different from the large financial institutions that were closed by the FDIC? |
| A: | Many large, nationwide financial institutions are originators of subprime mortgages and other nontraditional loans, particularly the kind that require no proof or verification of income. Our bank has always focused on serving our local community by making traditional loans that help our customers to stay in their homes and prosper as active residents of their local communities. |
| Q: | Are my deposits at Liberty Bank for Savings FDIC insured? |
| A: | Yes. Customers should feel complete comfort in the fact that bank deposits are insured by the Federal Deposit Insurance Corporation (FDIC). The FDIC is an agency of the federal government and is backed by the full faith and credit of the United States of America. And it may please you to know that the FDIC has never failed to make good on its promise. This is an unbelievable guarantee in the financial world. Better yet, recent legislation temporarily increased FDIC coverage up to $250,000. |
| Q: | Can Liberty Bank assist me in determining the maximum limits of my FDIC coverage? |
| A: | Liberty Bank Personal Bankers are very knowledgeable in FDIC coverage and can help you determine the extent of your coverage. If you have any questions about how to do this we invite you to call or visit one of our five offices and we will gladly help you determine your FDIC insurance coverage. Additionally, the FDIC provides an FDIC insurance estimator that can be found here: online estimator. |
| Q: | What are sub-prime mortgages and does it affect Liberty Bank for Savings? |
| A: | A sub-prime mortgage is an extension of credit to a borrower who may not qualify for a loan under traditional underwriting standards. Sub-prime mortgages are often much riskier investments in exchange for a higher return. The sub-prime mortgage market was a major contributor to several of the bank failures that have been in the news recently. Liberty Bank does not participate in the sub-prime market due to the risks involved. |
| Q: | Does Liberty Bank have any REOs/ Foreclosures? |
| A: | As of October 22, 2008 Liberty Bank does not have any Real Estate Owned properties (REO). An REO is property taken over by a bank through a foreclosure. Liberty Bank has always subscribed to highly prudent lending practices that are designed to serve and protect our customers while also preserving the bank's financial strength. As a result, foreclosures are extremely rare at Liberty Bank. Statement of Condition |
But don't just take our word for Liberty's merits. We want you to feel confident. Two websites maintained by well known, well regarded independent services rate the financial strength of banks and thrift institutions. Each have awarded Liberty their highest 5 star rating for security. Please visit Bauer Financial or Bankrate.com to review our ratings.
You don't have to travel far to find a community bank that has put customers' security first for the past 110 years...LIBERTY BANK.
It is important to us that all of our customers feel confident that your money is safe at Liberty. If you have any other questions, please feel free to contact our Chief Financial Officer, Joseph Moravecek at 773.489.4278.