To our Customers,
We’ve heard from a few customers who’ve been rattled by the recent news about the failure of Silicon Valley Bank and to a lesser extent, Signature Bank of New York. I thought I would write to put your mind at ease about your relationship with Liberty Bank. I can’t put it more simply; we see no risk to Liberty Bank and its customers. I know many on TV have suggested that there may be repercussions in the banking industry.
In truth, you would be hard pressed to find a stronger bank than Liberty Bank. And you don’t have to take my word for it. Bank-rating agency BauerFinancial has given Liberty Bank a five-star rating (the highest) for more than 34 straight years.
Deposits are insured by the Federal Government through the FDIC up to $250,000 and in some cases more. Keep in mind no one has lost a penny of their insured deposits. To augment this, Liberty Bank counts on its balance sheet over $205 million in capital. This is more than 3 times the required amount as determined by regulators. With this amount we have saved for a rainy day.
As to our investments, Liberty Bank does not invest in any crypto-currencies or any digital-related businesses that the marketplace has deemed to have a high degree of uncertainty. Rather, we invest in standard-issued Mortgage-Backed Securities, Government Agencies and Treasury obligations, all of which are government guaranteed. And finally, we invest in our neighbor’s homes by providing first mortgage loans.
Our investments include $204 million in short-term federally guaranteed obligations to provide us with plenty of liquidity if we need it. We have been preparing for an environment not unlike what we see today for many years, knowing that at some point rates would have to go up from their historic lows. We think higher rates are a good thing for our depositors as they have been on the sidelines for too long. We just need the economy to catch up.
If you have any questions, please don’t hesitate to call. Our staff will gladly answer any questions you might have. After all, we’re here to help and answer our own calls with real people.
Thank you for your business.
William J. Smigiel
Chairman & CEO