Banking on safety | Maryland Gazette (HometownGlenBurnie.com)

Now, local banks are launching extensive educational campaigns designed to reassure clients their money is safe.

BankAnnapolis, a locally owned bank, is handing out talking points to employees at its branches that promote a well-capitalized bank that has been profitable for 42 consecutive quarters. It also boasts more than $30 million in capital and as of March 31 a five-star rating - the highest given - from BauerFinancial, an independent company that rates banks.

Meanwhile, BB&T officials said they are educating their customers about the bank's strengths, from its 37th consecutive year of increased dividends and high bond ratings to the company's 14.1 percent risk-based capital ratio.

Brant Standridge, president of the bank's Chesapeake division, said the bank is training employees through webinars on FDIC insurance information and how to title accounts that allow clients to receive more insurance coverage.

"We're a safe harbor," he said. "We've worked really hard in our branches to tell our story."

BB&T, which has branches in Pasadena and Glen Burnie, also is making senior staff members available to clients.

"We had a client that was fairly uncertain about the future. I was able to spend 25 minutes on the phone with this client to share with him some facts," Mr. Standridge said.

The Bank of Glen Burnie's officers are told to use Bankrate.com, a Web site that aggregates financial rate information, and BauerFinancial, said Mike Livingston, the bank's president and CEO.

"With all the news the customers hear, they do get concerned," he said.

Mr. Livingston also advises his customers to look up the bank's stock symbol, GLBZ, and use fdic.gov to find out more information on deposit insurance.

In July, Severn Savings Bank began running new ads that read: "Savings. Safety. Severn." and highlighted the bank as the No. 2 thrift in the country according to a national ranking. Despite problems in the national financial markets, "we are still on solid ground" said Nicole Donegan, bank director of marketing and communications.

Additionally, branch employees are working closely with customers to show how they can maximize insurance coverage. The bank, which has a branch in Glen Burnie, also is promoting the idea of doing business with community banks such as Severn Savings Bank.

"A lot of people feel safe knowing their money is in the community," Ms. Donegan said.

The concerns come amid the collapse of the nation's largest regulated thrift. California-based mortgage lender IndyMac was closed by federal regulators in July. Concerned about their funds, hundreds of worried IndyMac clients lined up outside the thrift's branches demanding funds.

The collapse of IndyMac was followed by the closing of 1st National Bank of Nevada and First Heritage Bank N.A.

Other banks are struggling.

The Federal Deposit Insurance Corp., a government agency created after the failure of several banks in the 1920s and 1930s, said it has 90 "problem" banks it is working closely with. FDIC spokesman LaJuan Williams-Dickerson said the FDIC cannot reveal the names of these banks.

The attention on IndyMac has made the public more aware of financial turmoil, but local bank officials said the concerns may be overblown.

Throughout the FDIC's 75-year history, "no customer has ever lost a single penny of insured deposits," according to the agency's Web site.

"This is a story that's dominated people's attention and I think it's causing people to lose track of the fact that 99 percent of banks in this country are perfectly safe and sound," said Richard Lerner, chairman and chief executive officer of BankAnnapolis.

Banking experts provided ways to keep money secure.

Get money fully covered by the FDIC.

The FDIC insures $100,000 per depositor per account type. Greg McBride, financial analyst for Bankrate.com, said as long as your money is fully covered by the FDIC, there's nothing to worry about.

"If you are fully covered, you can spend your time worrying about Britney Spears," he said.

But if you are not fully insured, that's a situation consumers must correct now, he said.

Consumers can spread money among multiple banks or title several accounts differently to get maximum FDIC insurance.

Customers can qualify for more than $100,000 in FDIC at one bank if their deposit accounts are set up in various ownership categories. A married couple, for example can have $200,000 insured in a joint account.

Keep funds in a CDARS account.

The Certificate of Deposit Account Registry Service, known as CDARS, has become increasingly popular in the wake of the financial downturn. It's a solution banks can sign up for that provides costumers with up to $50 million in FDIC insurance on CD investments.

Mr. Standridge said BB&T, which has offered the CDARS program for 12 years, has been getting more inquiries about the program in the past 30 days than in the past five years.

Phil Battey, spokesman for Promontory Interfinancial Network, the Virginia-based company that sells CDARS, said the company has seen a tremendous number of banks sign up for the service in the wake of the financial downturn.

"We're in the business of providing security and that's what people want these days," he said. "Since the beginning of the year we've been averaging about 15 banks coming on board," he said. "Last week alone we had 32 banks join up. We have another 100 or so in line doing the paperwork to join."

For more information about how to maximize FDIC insurance, visit http://www.fdic.gov/deposit/deposits/insuringdeposits/