Established in 1825 as Middletown Savings Bank,[2][4] in 1844, an account was opened with a balance of $26, and left untouched for 150 years until it was finally closed in 1994.

By that time it was the oldest direct descendancy savings account in the United States and had grown to over $32,000 on interest alone.

[4] The Liberty Bank Foundation was established in 1997 to provide grants to non-profit organizations which improve the quality of life for people of low or moderate income.

In 2003, Liberty Bank broke ground on its first affordable housing complex: Uncas Condominiums,[2] in Norwich.

[7] On March 4, 2019, The Hartford Courant reported that Liberty Bank was settling a lawsuit filed in 2018 by the Connecticut Fair Housing Center and the National Consumer Law Center, alleging violations of the Fair Housing Act.