GLASGOW — With all the negative news about the stock market, the world economy and reports of bank failures, a question on the minds of many boils down to one main thought: Is our money safe?

You can bank on it, according to representatives of Glasgow’s financial institutions.

With nothing but bad news coming out of Washington and Wall Street – Fannie Mae and Freddie Mac, a $700 billion bailout, plummeting stock prices and 401Ks losing value daily – it’s easy to understand why small-town Americans are feeling more than a little jittery about the future of their finances.

Breathe easy, say local bank executives.

“Contrary to what you’re hearing in the national media, Edmonton State Bank is still making loans and is open for business as usual,” assured Tommy Jackson, president of Edmonton State Bank. “Yes, there has been some concern, especially from customers with excess funds,” but with the enactment of the Emergency Economic Stabilization Act of 2008 (commonly referred to as the bailout bill), which raised FDIC insurance on checking and saving accounts from $100,000 to $250,000, fears can be allayed.

The FDIC has $45 billion to cover insured deposits currently and it can draw on additional U.S. Treasury funds to protect depositors. Since the creation of the FDIC, not one penny of insured deposits has ever been lost, according to a statement from the institution.

There are 117 banks on the FDIC’s current “watch list,” according to an article by Laura Bruce on bankrate.-com. That represents only about 2 percent nationwide of insured banks. During the savings and loan crisis in 1987, 12 percent were on the list.

In 1989, there were 534 financial institutions that failed. This year, there have been 13.

John Lawson, community president for US Bank, has been in the banking business for 36 years. He’s seen the ups and downs before, especially in the 1970s and ’80s. He remembers when the prime interest rate soar to 21 percent in the early ’80s.

Nervous depositors can learn from history. Economic boom times are usually followed by periods of economic bust. Sound practices by banking institutions help them through the downturns.

Lawson said the best way for a bank to be judged is by its stock price. US Bank’s stock has maintained value near it highest level, he said.

“US Bank is a conservative, highly capitalized bank,” said Lawson. “We have maintained a stringent portfolio; we put quality into it.”

He said his bank is the sixth largest in the country. The bank advertises that 498 of Fortune 500 companies have accounts with the group.

Another reason US Bank is in a strong position, Lawson said, is because the bank didn’t get into the sub-prime mortgage morass.

Maintaining high capitalization and avoiding exposure in risky ventures, such as sub-prime, zero-down, 100 percent-interest mortgages, seemed to be a common theme voiced by local bankers.

“We have a very high capital fund to provide loans to the local community,” Jackson said. “E$B is locally owned and managed by local community members who live and work in this trade area.”

He said his bank doesn’t normally go outside the local area to do business, choosing to serve primarily hometown consumers and small enterprises.

“Small businesses are the backbone of the economy,” he said.

Jackson should feel confident about his bank’s position. Edmonton State Bank has a five-star rating – the highest given in banking - according to bankrate.com. Other local banks have four stars. Ratings of one or two stars could signal the need for some concern by depositors. Independent financial rating organizations have given no fewer than three stars to any of the local banks.

Traditionally, banks in the state have always had conservative lending practices.

“Kentucky is known for its well-capitalized, sound community banks that focus on small customers,” said Danny Coffey, president of South Central Bancshares.

Glasgow banks are no exception.

Local banks have remained fairly insulated from the conditions that have caused problems in larger markets.

“PBI has no sub-prime mortgage exposure,” explained Janis Turner, vice president of PBI Bank. “Our housing market hasn’t seen the inflation other areas of the country have had.”

Coffey agreed, “South Central Bank, like all the local banks, is highly capitalized and has not strayed into sub-prime mortgages. (SCB) is in good financial shape.”

Debbie Livingston, city executive for BB&T;, said her bank makes decisions that ensure everything is done in the best interests of the clients.

“For 136 years, BB&T; has grown and prospered in all kinds of financial weather,” she said. “That’s because we’ve built our bank on a firm foundation of client-driven values.”

BB&T;’s financial performance remains strong, according to Livingston. She said the bank is consistently rated as one of the safest and soundest financial institutions in the S&P; 500 Index and actually raised their dividend to investors this year.

Local banks aren’t the only institutions that want the public to know they’re in a strong position.

Valerie C. Brown, president/CEO of Service One Credit Union, announced recently that “Service One’s financial condition has never been stronger.”

As of Aug. 31, the credit union had a capitalization rate of 11.92 percent with delinquencies at 1.1 percent.

“As a not-for-profit financial cooperative, the credit union never invests in risky, mortgage-backed securities,” she said. “Service One’s assets have grown over 8 percent this year.”

Deposits and IRAs are also insured at the credit union.

The overall message banking institutions in the community want their customers to understand is that depositors’ accounts are secure and, unlike their big-city counterparts, local banks aren’t into risky business.

“It’s simply against our values to put clients in a position of unnecessary financial risk,” said Livingston.A