There are many practical ways for consumers to check the financial health of their bank — but the information out there can be confusing and hard for consumers to understand.
Tom Thompson, president of Lyon County State Bank, said the only public information on financial institutions is through the FDIC in the form of call reports. Thompson said consumers must take the information located in that report and make it meaningful to them. The most important information in the call report for consumers to look at is the bank’s capital structure, past-due loans and non-accrual loans.
“What people need to look at is FDIC coverage and their insurance,” Thompson said. “Every individual account is insured up to $100,000 and (consumers need to) know that formula.”
The FDIC Web site: http://www.fdic.gov/deposit/deposits/insured/yid.pdf states that “if a depositor's accounts at one FDIC-insured bank or savings association total $100,000 or less, the deposits are fully insured. A depositor can have more than $100,000 at one insured bank or savings association and still be fully insured provided the accounts meet certain requirements.”
All accounts held by the same person at a bank are added together. Up to $100,000 is covered by insurance. Retirement accounts are insured up to $250,000. However, some accounts and account holders can be insured for more. For example, a husband and wife account can be insured for $100,000 in the husband’s name and $100,000 in the wife’s name. The total amounts in the accounts are added up and a total of $200,000 is covered.
Thompson said one of the most important thing customers can do if they have concerns is communicate with their bank.
“They just need to go in and visit with them,” he said.