Chemical Financial Corp. of Midland, Mich., is taking on quite a challenge: saving Michigan.
Not literally — there is only so much a banking company can do about the loss of hundreds of thousands of manufacturing jobs. But Chemical hopes its "Save Michigan" financial-education campaign encourages more Michiganites to become savers.
An even better outcome for the $3.7 billion-asset Chemical, of course, would be if consumers parked their money in accounts at one of its 129 branches.
The campaign kicked off in July with 14 billboards scattered throughout the state's Lower Peninsula that simply said "Save Michigan." For 10 days motorists and other passersby did not know what the tag line meant or who was behind it — and that was the point.
"We wanted to change the conversation and to get people talking," David B. Ramaker, Chemical's chairman, president, and chief executive officer, said in a press release in which the company revealed that it was the one that had put up the billboards.
A Web address created solely for the campaign, SavingMI.com, was added after those first 10 days.
On the site consumers can get information about financial literacy seminars that the bank launched last week and will continue into September in its markets in the Lower Peninsula.
The workshops, built around topics such as how to save, budget, and buy a home, will be held this week in Grand Rapids, Holland and Kalamazoo.
The site also discusses a new Chemical savings account offering higher rates on larger deposits, to a maximum of $25,000; retirement planning services; and a program in which the bank will work with local agencies to provide matching for down payments or closing cost assistance for some first-time homebuyers.
The company said the campaign, which also includes radio advertisements, is less about promoting products than playing up Chemical as a strong institution in a weakened economy.
As a local bank, Chemical's success is tied directly to the community's, said Ken Johnson, executive vice president and director of bank operations for Chemical Bank, the company's banking subsidiary.
"Our growth is dependent on the growth of our communities," Mr. Johnson said. "And we think Michigan can be better … we can't resolve the state's problems, but we can help. We have money to lend and programs available to help our communities grow."
The "Save Michigan" campaign will give way to a larger "Made in Michigan" branding campaign that is set to launch in September and will emphasize Chemical's 90 years in the state. It has branches in 31 counties.
The company would not say what it is spending on the campaign or how it plans to measure its success.
Robert Passikoff, the founder and president of Brand Keys Inc., a consulting firm in New York, said getting people to open new retail accounts, making loans, and generating other consumer business would likely be the best gauge of the campaign's effectiveness.
"Awareness is no way to measure," Mr. Passikoff said. "Everyone knows General Motors and no one is buying their cars." Chemical is "building an image, and image is fine, but they still need to get people through the doors."
Nonetheless, the campaign drives homes the message that the "efficacy of the business is reliant on the efficacy of the locale," Mr. Passikoff said.
"So, they might as well be a booster for the community," he said. "There is no other position to take."
Gail Madziar, a spokeswoman for the Michigan Bankers Association, said the campaign has served as a reminder that "despite the doom and gloom," local banks are prepared to "make much-needed credit available to consumers."
"We think this is a positive example of what could be going on out there," Ms. Madziar said. "This is a perfect opportunity to show consumers just how involved they are in their communities … and it sends the message that the bank is confident and successful."
David Scharf, an analyst with First Horizon National Corp.'s FTN Midwest Securities Corp. said that while the company is not immune to the Michigan economy, it has fared better than many of its Michigan peers.
Chemical's delinquent loans have risen sharply over the last few quarters, but unlike a number of its competitors, it remains profitable. It reported second-quarter earnings of $9.6 million, up 1% from a year earlier. Its share price is up roughly 33% this year and stood at $29.24 midday Friday.
Mr. Scharf said the company's strong capital position — with risk-based capital at 17.3% at the end of the second quarter — is evidence of its overall sound health.
He called the "Save Michigan" campaign "a catchy piece of marketing.
My take is that they are trying to say, 'Hey look at us, we are in a position of strength, your deposits are safe here, and we have ample capital to weather the storm.' "
Steven Reider, the president of Bancography, a consulting firm in Birmingham, Ala., said more banks should be doing aggressive marketing during the economic downturn.
"Times of trouble are really times of opportunity," Mr. Reider said. "And as others are squirreling away from marketing, launching an ambitious, widespread campaign sends a subtle signal of reassurance to consumers."
