College Savings Bank, which began operations in September 1987, has been helping
families fund education for more than 22-years.
Our mission.
"To be a partner to parents who are preparing their children for higher education.
We are in the financial business, but as a partner, we treat all of our beneficiaries
like family members - and in as such, deliver products and services to the market that
we would want as parents ourselves."
Our business.
The Bank originates and markets Certificates of Deposit (CDs) including the
CollegeSure CD and the InvestorSure CD. Each is an innovative, unique
saving-for-college investment featuring FDIC insurance up to $250,000 per depositor*
and principal protection.
At College Savings Bank we believe our first priority is to preserve investor
assets, therefore protect a child's future. Our CDs guarantee principal at maturity.
And market conditions cannot affect the pledge we make to our families.
The Bank's success to date can be measured in part by its nationwide customer
base, its distribution arrangements with nationally recognized broker/dealers,
financial planners, employee benefit programs of national companies. Further, the Bank
is the program manager for tax-advantaged, section 529 programs such as the Montana
Family Education Savings Program and the Arizona Family College Savings Program which
are available nationwide.
Our creditworthiness.
The Bank is strongly capitalized and operates under a conservative investment
policy. On March 31, 2010, the Bank had regulatory capital ratio of Tier 1 (or core)
capital to total assets of 5.92%
The Bank invests primarily in high-grade, adjustable-rate mortgage-backed
securities, the majority of which are guaranteed by the U.S. government or its agencies
as well as student loans through the Federal Student Loan Program. The Bank limits its
investments in this manner in order to avoid the types of credit risks that have often
financially impaired other banks. The Bank designs its investment portfolio and updates
that portfolio periodically to match the interest rate sensitivities of its assets and
liabilities.
A measure of the Bank's investment portfolio
is found in the Bank's Tier 1 capital-to-risk-weighted-asset ratio under the
FDIC's risk-based capital guidelines. On March 31, 2010 this ratio was 23.38%, as
compared to the statutory minimum requirement of 8.00%.
Our affiliation.
College Savings Bank is a member of the Federal Deposit Insurance Corporation, which
means that the Bank's deposits are insured by the Bank Insurance Fund of the FDIC
up to $250,000 per depositor*.
The combination of FDIC insurance, the Bank's high Tier 1 capital-to-total-asset
and risk-based capital ratios as well as the Bank's conservative investment policy
ensures the safety of your deposits. We believe no other financial institution offers
its customers a more complete college funding solution.
December 31, 2009
Call Report
*FDIC deposit insurance temporarily increased from $100,000 to $250,000 per
depositor through December 31, 2013.