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Dear Valued Clients,
In light of the recent turbulence on Wall Street, I want you to know that Liberty Savings Bank is monitoring the situation closely to ensure sound stewardship of the deposits you have invested with us.
While the nation’s economic situation remains unpredictable, Liberty Savings Bank has weathered similar uncertainty before and is dedicated to providing our customers with a safe and financially secure banking environment.
Recently, Congress passed legislation to support and build confidence in our economy. The temporary increase in FDIC insurance limits to $250,000 has stabilized the banking industry and has significantly reduced the fears of depositors.
During the past decade, there has been intense pressure to house America, and many national loan programs were liberalized to facilitate this goal. Throughout this period, however, Liberty’s loan underwriting standards have remained sound and did not significantly change. Further, we have no investments in a credit card portfolio, no investments in sub-prime loans, no complex derivatives and no interest rate swap investments. Other companies may be exposed to the risks of such products, but we have taken a conservative approach by investing in securities with governmental support and loans with liens on real estate, which is the reason we are financially strong today.
Liberty Savings Bank is in good standing with our primary regulator, has plenty of liquidity and exceeds the requirements to be considered a well-capitalized institution. Below are the three ratios needed to be well-capitalized and Liberty’s ratios as of September 30, 2008:
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Well-Capitalized
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Liberty Ratios
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| Tier 1 core capital |
5.0%
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8.56%
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| Tier 1 risk-based capital |
6.0%
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13.81%
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| Total risk-based capital |
10%
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14.63%
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You can find complete financial information on Liberty and other banks online at www.fdic.gov. We believe you will find that in many of our communities, we are the strongest bank around.
Liberty was founded in 1889 to serve the financial needs of our community. Liberty has made it through good times and bad because we have always focused on our customers. It is with this foundation that we sincerely tell our clients: Our Interest Is In You.
Sincerely,James R. Powell, Chairman & CEO
Our Interest Is In You!
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