Alliance Bank Offers $50 Million FDIC Insurance Coverage

Alliance Bank, a privately owned community bank with over $600 million in assets, announced today the launch of an advertising campaign to promote its multi-million dollar insurance service for Certificate of Deposit investors. This service, offered through Certificate of Deposit Account Registry Services(R), (CDARS(R)), allows individuals and businesses the security of FDIC insurance of up to $50 million, with just one banking relationship at Alliance Bank.

Currently, less than 25% of banks in Minnesota and less than 30% of banks in Wisconsin offer this service. Alliance Bank joined the network back in 2003 when CDARS was first developed. With recent news about banks failures, Alliance Bank has seen an increase in demand for this service.

"Alliance Bank joined the CDARS program when it was initially developed to fulfill a niche for some of our larger depositors," said Erick Reim, vice president. "During this current challenging financial environment, having additional FDIC coverage is comforting to large investors, such as retirees, business owners, nonprofits and public funds organizations. As an innovative community bank, we're proud to be able to offer this service."

CDARS works by using a sophisticated computer network, placing clients' funds among other FDIC insured banks. This allows customers to manage all of their funds through one portfolio at Alliance Bank. Clients benefit from the simplicity of working with just one bank, and receiving just one statement and one 1099. It also eliminates the need for private insurance or collateralization.

"In contrast to the recent news about other banks failing, Alliance Bank is financially sound and has not been involved with the sub-prime mortgage business or other risky investments," stated V. Philip Reim, chief executive officer. "Given the recent news, however, even the most experienced investors may begin to evaluate options for spreading their money to more than one financial institution to ensure safety. Through the CDARS program, clients have the convenience that comes with a single banking relationship, and the security of FDIC insurance coverage for up to $50 million."