Aug. 12--First Citizens Bank's new ad campaign stresses the bank has been around for more than a century and boasts that its current finances are ranked "superior" by an independent rating service.

Similarly, a current BB&T radio ad notes that the bank opened its doors in 1872 and proclaims: "What we do isn't based on financial fads or market situations, but rather on what we believe is the right thing to do."

"I think it's about time the banking industry started to stand up and say we're not all subprime lenders," said Tony Plath, a finance professor at UNC-Charlotte. "I think that is what some of the banks like BB&T and First Citizens are trying to accomplish in their ads."

It helps that Raleigh-based First Citizens and BB&T, which has headquarters in Winston-Salem, are faring relatively well despite the turmoil rocking the banking industry. They remain profitable at a time when national banks such as Charlotte-based Wachovia and Washington Mutual are racking up billions of dollars in losses.

First Citizens' corporate parent, First Citizens BancShares, posted a $26.2 million profit in the second quarter -- a 15 percent decline from a year ago but strong enough to garner praise from analysts in the current environment. BB&T's second-quarter profit was down 7 percent.

So it's no wonder that First Citizens' new ad campaign, which began appearing last week in newspapers in the markets it serves, touts its five-star rating from BauerFinancial Inc.

Founded in 1898, First Citizens has 340 branches in five states. The ad campaign, created by Winston-Salem's Cassels Caywood Love, marks the first time First Citizens has mentioned its rating in an ad.

"We know a lot of consumers look to these rating services when deciding on a financial institution," said First Citizens spokeswoman Barbara Thompson.

Well, yes and no. In the past, consumers haven't paid any attention to bank ratings, Plath said, because they felt comfortable knowing their deposits are federally insured. But the failure of California-based IndyMac Bancorp, which was seized by regulators last month, has made consumers wary.

Ron Denny, senior vice president at BB&T, which has more than 1,500 branches in 11 states, said of the ad campaign the bank launched in May: "Given all that was going on in the industry, we really felt it was time to reassure our clients, our shareholders, our employees and the community that BB&T is a very sound, very stable, well-respected bank."

The BB&T campaign was created by Raleigh ad agency RBW. Neither BB&T nor First Citizens disclosed how much they're spending on their ad campaigns.

Stressing financial stability is a message that will probably play better in other markets than it does in the Triangle, said Buddy Howard of Equity Research Services, a Raleigh company that tracks the banking industry. He noted that banks here have benefited because the real estate market never overheated and therefore hasn't fallen as hard.

"While First Citizens and BB&T are financially solid, most of the other banks that serve this market are, too," Howard said. "I don't think it's a situation where you are likely to see a lot of customers leave one institution and flock to another because of safety."

david.ranii@newsobserver.com or (919) 829-4877

-----

To see more of The News & Observer, or to subscribe to the newspaper, go to http://www.newsobserver.com.

Copyright (c) 2008, The News & Observer, Raleigh, N.C.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

NASDAQ-OTCBB:FCIS, NYSE:BBT, NYSE:WB, NYSE:WM, NASDAQ-NMS:FCNCA, NYSE:IMB,

Story Source: The News & Observer