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LIBOR Transition
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Information on the London Interbank Offered Rate (LIBOR) Transition
Variable-rate loans (and other financial products) are usually tied to an index. LIBOR is an index that has been in use for decades. However, the entity that regulates LIBOR has announced that it will phase out that index. For example, that entity will no longer require the data necessary to establish 1-month, 3- month, 6-month and 12-month United States Dollar (USD) LIBOR indices by the end of June 2023. It is expected that at that time such LIBOR indices will cease to be published. If they continue to be published in some form after June 2023, then it is expected that those indices will be unrepresentative and not reliable (which could even occur before the end of June 2023).

If your loan with Provident Savings Bank is tied to a USD LIBOR index, the Bank is prepared for the LIBOR phaseout, is working on making that transition as seamless as possible, and will notify affected borrowers when it is time to transition their loan from LIBOR. The Bank, like most of the industry, is waiting for government agencies to issue rulemaking and other guidance on the LIBOR phaseout.

If you would like more information, here are some links with some helpful information:

SOFR Index Information – SOFR Links: