TUCSON, Ariz. -- It might be called trial by fire or on-the-jobmedia training, but it's something Raymond Lancaster, president/CEOof the $65 million Pyramid Credit Union, might now include in hisjob resume after witnessing the public's anxiety over depositinsurance and failing banks.

It was a first for the Tucson CEO who, with "exactly 10 minutesof advance warning," found himself in front of a TV cameraconducting interviews with reporters on a comparison of FDIC andNCUA deposit insurance. That was days after the July 11 IndyMacBank collapse in California.

Lancaster's CU last week received several hundred calls in twodays from worried members and individuals alarmed about the failureof a $3 billion Scottsdale-based bank holding company thatregulators seized on July 25 and sold to Mutual Bank of Omaha.

First National Holding Co. and its subsidiary, First NationalBank of Arizona with two branches here along with two Nevada andCalifornia banks, were closed because of faulty alt-A mortgages andloans to bankrupt home builders.

Lancaster, who now numbers in a legion of executives from CUsand leagues across the U.S. coping with public angst over thesecurity of financial institutions, maintained that "NCUA shouldprobably be more proactive than it has in educating on safety andsoundness, so the public realizes that credit unions are covered bydeposit insurance," a fact that seems to have been lost in theturmoil.

Lancaster was hardly alone last week in safety and soundnessduties as scores of CUs joined by CUNA and state leagues used aplethora of outreach devices, including Web sites, talking points,public forums, ads and media interviews to help educate the publicon NCUA insurance.

Many CUs, as it turned out, were benefiting from the attentionon CUs by gaining new deposit business.

That was the case both in Ohio and Pennsylvania, where bothlarge and small CUs witnessed ex-bank customers making modestswitches.

"The fact is we didn't engage in those super risky subprimeloans that are now biting the banks, and so, while this is comingat their expense, I see nothing wrong with going out and tellingour story. And we have a great story to tell," declared WilliamBurke, president/CEO of the $157 million Day Air CU in Kettering,Ohio, which recorded $500,000 in new deposit business in the lastthree weeks.

Similarly, the $168 million Erie General Electric FCU inPennsylvania has experienced total shares and deposit growth of 13%during the first half of this year. Shares and deposits jumped to$148.3 million at June 30, 2008 from $130.8 million at year end2007. The CU also booked asset growth of more than $2.3 millionthis July. Officials at the CU attributed this growth to consumerwariness about banks as well as offering $250,000 in privateinsurance. Erie CU's assets have grown by more than $20 million sofar this year.

The CU said the recent growth was caused by the mix of the newson IndyMac, rumors of other institutions having difficulties andits community branding. It has seen an increase in both memberaccount openings and deposits, as nonmembers are opening accountsand existing members are moving their funds from other institutionsto Erie.

Erie provides $250,000 of private insurance on top to the$100,000 provided by NCUSIF on accounts that exceed the maximumfederal insurance level.

"In the wake of the IndyMac fiasco, we are very happy that wehave the extra protection for our members, not because we areconcerned about our financial soundness, but because it shows thecredit union difference, in that we are willing to go the extrastep to protect our members," said Jason Dietz, chief financialofficer.

Meanwhile, KEMBA Financial CU in Ohio said it too has receiveddeposits and dozens of phone calls and e-mails from members and thepubic after it ran a two-page safety and soundness letter fromGerald Guy, its president/CEO, following the IndyMac failure and afront page story in The Columbus Dispatch headlined, "Is NationalCity Safe?" in a reference to the Ohio-based bank.

Guy's online letter was titled "Is Your Money Safe at KEMBA?"and, like others appearing across the U.S., stressed that CUs hadno part in subprime loans and were now offering ways to helpmembers get out of financial difficulty.

Like Lancaster of Pyramid, CU staffers from California toWisconsin were frequent guests on radio talk shows.

"Both myself and my compliance officer were able to get on theair to discuss deposit insurance and assure listeners their moneywas safe," said Frank Beres, marketing director of BlackhawkCommunity CU in Janesville, Wis. Beres was joined on the air byLynn Hiller, director of compliance appearing on WCLO, a localradio show.

Even Danny Mazza, public affairs director for the $1.9 billionArizona Federal CU in Phoenix, which was undergoing its own set oftroubles by reporting a $42.5 million first-half loss, called infrom his car to get on the air on an afternoon talk show after thehost started telling listeners that without FDIC insurance theywere out of luck.

"I was glad I was able to get through and set the recordstraight," said Mazza, who knew days later his CU would bedivulging some rather negative news.

Meanwhile, CUNA President/CEO Dan Mica sent out new updates lastweek with information on how it is spreading the word on creditunions' safety and soundness. CUNA contacted various national mediaoutlets, such as CNN, USA Today and Fox Business Network and sentletters to members of Congress. It also sent out talking points andresources for credit unions to use when reassuring.

"When something like this occurs, credit unions and leagues actinstinctively," concluded a CUNA spokesman.

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