Small Banks Targeted as Robberies Surge Again

A nationwide resurgence in bank robberies is catching small-town banks off guard.

Robbers, traditionally drawn to big cities, are increasingly fanning out to rural communities, experts say.

"I think all of our employees feel a good deal less safe today than in the past," said John E. Hughes, president of First National Bank of North East. The $70 million-asset bank in rural northern Maryland was robbed in February-the third robbery in its 94-year history.

The FBI reports that bank robberies rose to 7,562 last year from 6,758 in 1995-a 12% increase and the first upswing since 1991. Oddly, the surge came as violent crime against individuals throughout the United States was falling.

While FBI statistics don't break down the victims by asset size, an American Bankers Association spokeswoman said she's hearing of numerous incidents of robberies at rural banks.

"Bank robberies are not limited to the urban areas any more," ABA spokeswoman Sonia Barbara said.

In response, the trade group has launched a prevention program aimed at teaching bankers how to protect themselves. Among the tips: Team up with other banks to share crime information and train employees to handle robberies.

Some small banks are even thinking of stationing armed guards in their lobbies for the first time.

Experts say the nationwide jump may have been caused by the proliferation of small, relatively unguarded branches, the drug trade in urban areas, and the spread of gangs to areas outside cities.

The FBI, for its part, won't even venture a guess as to why robberies have risen. But agents interviewed said that all bank branches-regardless of size or location-are at risk.

"The intent of a robber is to get in and out of there as quick as possible," said Larry Foust, a special agent in the FBI Baltimore office. "Sometimes he'll look for the most secluded bank that has the most accessible thoroughfare out."

While large cities such as Los Angeles and New York still claim a big share of bank robberies, experts say even traditionally low-crime areas, such as the Upper Peninsula of Michigan, are vulnerable.

"My opinion is, as you get into the outlying areas, where you don't have as much traffic, yes, you're certainly more susceptible," said the president of a small Michigan bank that was robbed twice last year. The executive, who requested anonymity, said a single robber is suspected to have struck the bank both times, escaping on a snowmobile and then on a dirtbike.

In Los Angeles, dubbed the "bank robbery capital of the world," FBI special agent John Hoos said he's seen an increase of incidents in the outlying areas of the massive seven-county metropolitan area.

"It's alarming," he said. "It's very easy to steal a car in the inner city and drive one hour to rob a bank in suburbia."

Robbery targets among community banks can be found coast to coast-often far from the usual hot spots. And lightning sometimes does strike the same place twice.

For instance, $20 million-asset Van Horn (Texas) State Bank was robbed twice last summer.

"It's not a big-city problem-it's a small-town problem," said Michael Hensley, chief executive officer.

Robbers have hit BankUnited, a $1.6 billion-asset institution in Coral Gables, Fla., three times in the past six months. In Spokane, Wash., a branch of $1.35 billion-asset Washington Trust Bank was robbed March 5. A month and a half later, the same gang tried again.

What experts are teaching community banks-and what bankers are learning through hard experience-is the need for preparedness.

After the first of last year's two robberies, employees of Van Horn were in disarray. "We just fell over ourselves, did things wrong," Mr. Hensley said. "We neglected simple stuff like not locking the door after the robber left and picking things up at the crime scene."

But often the typically small staffs at community banks don't have the time or manpower to make sure all employees know what to do when a robber strikes. And small banks usually don't have the budget to buy expensive security equipment.

Some bankers are responding to the surge in robberies by bringing in outside trainers.

"The demand on my time has been incredible," said Harold Eavenson, president of Harold Eavenson & Associates, a bank security consulting company in Rockwall, Tex.

Experts instruct that robbers can be deterred by witnessing branch officials greeting customers as they walk through the door.

Other relatively simple prevention measures include adding speed bumps to parking lots, decreasing the number of entrances to the bank lobby, and leaving clear views of lobbies for security cameras.

Going as far as placing an armed guard in the lobby, however, might not be advisable in the age of automatic weapons, said Mr. Eavenson.

But Mr. Hensley, the Texas banker, was unsure anything can really stop bank robbers. "They're willing to do whatever it takes," he said. "If someone gets shot, they don't care."

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