We know you have questions regarding the LIBOR transition.
You've come to the right place.
The London Interbank Offered Rate (LIBOR)—the rate used around the world to price financial products – will be discontinued across all U.S banks by the end of 2021 with limited exceptions. LIBOR will no longer be accepted by Financial Regulators after June 30, 2023.
This change will affect some adjustable or variable rate loans and lines of credit like adjustable-rate mortgages (ARMs), reverse mortgages, home equity lines of credit and personal loans that use LIBOR as the index.
The federal government has recommended using a SOFR based index as the replacement index for loans that use LIBOR.
If you do not have a loan or product linked to LIBOR, then this transition does not impact you.
If you are not certain, check with your banker to make sure.
In line with our Best-In-Cass promise, we have established a LIBOR task force to ensure a seamless transition.
Our transition plan:
Part of our transition plan includes reviewing each agreement that uses LIBOR and making sure there is language that allows the transition to a new index in the event LIBOR is discontinued. If there is no such language in the agreement, we will be making the necessary amendments to include language that allows the transition to a new index.
We are personally reaching out to each client who has a loan using LIBOR and ensuring clients are informed and prepared for the transition.
We also aim to minimize any possible disruption after the transition to ensure there is no disadvantage to either party.
We appreciate your patience as we follow federal guidance and transition away from LIBOR.
Please do not hesitate to contact your Relationship Manager at any time.