About Us | History

Did you know that Liberty Bank, chartered in 1825, is the oldest mutual savings bank in Connecticut? With more than $2.5 billion in assets, it's also one of the largest banks headquartered in the state, serving more than 190,000 individual and business customers through 35 community banking offices located in central, eastern and shoreline Connecticut.

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The Early Days

When we opened in 1825 as Middletown Savings Bank, our first office was located in Samuel Southmayd's pharmacy on the corner of Main and William Streets in Middletown. On the first day of business, we accepted $970.75 in deposits, which were placed in the bank's vault-an oaken cupboard now in Yale University's museum collection. In 1837, we moved into a building on the corner of Main and College Streets.

The Oldest Savings Account in America

One of our favorite customer stories is about Frederick Sheffield, a young merchant from Old Saybrook. In 1844, Sheffield rode his horse to Middletown to deposit $8 in the bank. Six months later, he made an additional deposit of $18. He then moved away from the area, leaving his money on deposit at the bank. In 1994, Sheffield's descendents finally closed his account, which had grown through interest alone to more than $32,000 and was the oldest individually owned savings account in America. A descendent of Sheffield holds an account at Liberty Bank to this day.
By 1852, deposits had reached the $1 million mark. The bank continued to grow, remaining a safe place for community deposits throughout the economic turmoil of the late 1800s and early 1900s. Deposits reached the $10 million mark in 1912. In 1929, on the eve of the Great Depression, we moved into a new building at Main and Court Streets in Middletown--the same building that serves as our headquarters today.

The Early Twentieth Century

Following World War II, Middletown experienced a population boom, and the demand for housing exploded. As a result, we grew to become Middlesex County's number one mortgage lender (a position we retain to this day). In response to the area's rapid growth and increasing customer demand for convenience, we opened our first branch office in Portland in 1958--an office that featured the nation's first all-female bank staff. Additional offices were opened in Old Saybrook (1960), Waterford (1963), South Main Street in Middletown (1969), Haddam (1972), Mystic (1973) and Marlborough (1974).

In 1975, Middletown Savings Bank changed its name to The Liberty Bank for Savings, continuing our expansion with offices in Cromwell (1976), Quaker Hill (1978), East Lyme (1978) and Metro Square in Middletown (1979). The old Middletown Post Office, located at Main and Court Streets, was purchased by the bank in 1980 and now houses the departments of Commercial Lending, Finance and Administration, Human Resources, and Technology. 1982 saw the acquisition of the Willimantic Savings and Loan Association, which gave us two more offices in Willimantic and Mansfield.
With the lifting of government regulations banning banks from selling securities, the bank began in 1982 to offer investment products. Customers could now come to us for a variety of investment options, including stocks, bonds, annuities, government securities, and retirement plans, along with financial planning advice. These products and services are offered today by Liberty Bank Investment Services through Raymond James Financial Services, Inc.

Our branch network continued to grow at a steady pace with offices at Washington Plaza in Middletown (1983) and in Clinton (1986). We acquired two branches of the former Jefferson Federal Savings and Loan in East Hampton (1984) and on Main Street in Cromwell (1986). The Groton office opened in 1987, and in 1988 we acquired a former Society for Savings office in Colchester. A second office in Willimantic was also opened that year.

Recognizing the need for more space to accommodate the bank's operational departments, we purchased a two-story, 40,000-square-foot office building on High Street in Middletown in 1988. Today, 55 High Street is home to our personal lending and personal banking divisions, the marketing and audit departments, and a number of outside tenants.

The 1990s — and Beyond

In 1990, we added a new dimension to our array of services by entering the business banking arena. Formerly off limits to savings banks, business banking was viewed by our management as a prime opportunity to expand our deposit and loan bases. By focusing on smaller businesses with $20 million or less in annual sales - businesses that larger banks tended to bypass in favor of bigger companies - we began making a name for Liberty as a commercial bank that offered superior personal service and a competitive array of deposit and loan products. As a reflection of our new status, the decision was made that year to shorten our name to Liberty Bank.

Our market territory continued to spread geographically as well, with new branches in Deep River (1992), Durham (1993), Essex (1994), Norwich (1996), and Wallingford (1996). In September of 1994, we became the first bank in Connecticut to own and operate a check cashing facility. Liberty Cash-a-Check, in Middletown's north end, was one facet of our community development program, which is designed to provide financial services to individuals and families of low to moderate income. In November 2000, we added banking services at Cash-a-Check, making it our 29th banking office.
1997 saw the addition of offices in Middlefield and New London, the latter as a result of a merger with the First New London Savings and Loan Association. That same year, we took the first steps in the development of online banking - a means of accessing accounts from anywhere in the world.  And we established the Liberty Bank Foundation as a permanent resource for financial support for the non-profit organizations that people in our communities depend on.

During 1998, our Customer Service Center was opened, providing an opportunity for customers to speak with a real human being over the phone from 8 a.m. to 7 p.m. weekdays and from 8 a.m. to 1 p.m. Saturdays. In October of that year, online banking made its official debut, with more than 2,000 customers signed up before year-end.
In early 2000, we introduced our Good Neighbor mortgage program, offered in partnership with Freddie Mac, Consumer Credit Counseling Service of Southern New England, and Centro de la Comunidad.  Good Neighbor was designed to help make homeownership an achievable goal for individuals and families of low or moderate income. With low down payments, easy qualification, and credit guidelines that can accommodate even those buyers who may have had credit problems in the past, this $20 million program is opening new doors to homeownership. Year 2000 also saw the introduction of a new Liberty Bank credit card with a low fixed interest rate and the ability to earn points redeemable for cruises, airline tickets, hotel accommodations, and more.

Recognizing the growing cultural and ethnic diversity of our market area, Liberty introduced its Community Diversity Award in 2001.  This annual award honors an individual who has been a champion of the cause of diversity in communities served by Liberty Bank.  In September, the bank was recognized by the Middlesex Branch of the NAACP with the organization's Business Award for exemplary involvement in the community. In October, federal regulators awarded Liberty an "outstanding" rating for our community reinvestment initiatives.   Year 2001 also saw the growth of our branch network with the merger of Liberty Bank with Hometown Bank, giving us new offices in Moodus and Higganum. In November 2001, we cut the ribbon on our 32nd office on Washington Avenue in North Haven.  A few months later, we brought the number of branches in our network to 33 with the opening of our Cheshire office.

2002 was a year in which Liberty achieved three important milestones.  In August, the bank's assets topped the $2 billion mark - a dividing line between smaller banks and the larger players in the market.  By December, we had funded more than $1 billion in loans - a record for us.  The final milestone reflects Liberty's ongoing commitment to the communities it serves; the total grants awarded by the Liberty Bank Foundation to local non-profit organizations since its inception passed the $2 million mark.

In 2003, Liberty broke ground on its first-ever affordable housing complex:  Uncas Condominiums, in Norwich.  Units in this 78-unit complex were sold at below-market prices to make them affordable to low- and moderate-income buyers, with special financing available.  Late in the year, our Madison office opened, bringing our network of branches to 34.  In early 2004, Liberty introduced its Small Business Loan Center, deploying a new credit vehicle for small businesses that was quick, easy, and convenient.

2005 saw the introduction of BreakFree:  a suite of market-leading products designed with all the features and value consumers want-and none of the hassles they don't.   BreakFree Checking was the first checking account in Connecticut to offer rebates of other banks' ATM surcharges.  BreakFree Home Equity Line offered a super-low interest rate, with no closing costs, application fee, appraisal fee, or minimum draw requirement, for lines as low as $25,000.  In 2006, we added BreakFree MoneyMaker account, followed by BreakFree Business Checking, which features unlimited free basic transactions, rebates of other banks' ATM charges, and more.

As all this was happening, the Liberty Bank Foundation was moving forward, too-expanding its scholarship program to provide 15 four-year scholarships for a total of $75,000 annually, instituting a scholarship program for graduates of local adult education programs, and providing funding for enrichment and remediation for children in K-12 schools.  Implementing its mission of supporting programs that improve the quality of life for people of low or moderate income in Liberty's service area, especially families in crisis and children at risk, the foundation provides grants for community and economic development, education, housing, health care, human services, and the arts.  In 2007, the Liberty Bank Foundation will celebrate its tenth anniversary, having awarded almost $4 million in grants over the past decade.

While steeped in the area's history and tradition, Liberty Bank is one of the most progressive banks in Connecticut, continually enhancing its products and services to meet the financial needs of the individuals, businesses, and communities in our market area. From its origins as a consumer bank, Liberty has grown steadily to a full-service financial institution whose lines of business also include commercial banking, home mortgages, insurance, and investment services. As a mutual bank, owned by its depositors rather than by shareholders, Liberty has proudly dedicated itself for more than 175 years to superior personal service and unparalleled community involvement--a commitment that we are continuing into a new millennium.