Gauging Safety of Banks and S&Ls;? A Variety of Reports Can Help You Sort It Out

Q Are there reports that everyday consumers can get that rank savings institutions according to the financial safety they afford their depositors?

--N.V.W.

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A There are several sources of reliable information about banks and savings institutions. Some of this information is probably too detailed for the average depositor, and most of it may be out of date by the time it’s published. But that’s no excuse for throwing caution aside.

It’s important to remember that thrifts rarely get into deep financial trouble overnight, so heeding any troubling sign as soon as you catch sight of it is well advised. Generally speaking, regular attention to the financial press should provide sufficient advance warning of any problems that could force a thrift into insolvency and takeover by federal authorities.

However, before investing in any long-term certificates of deposit or other investments carrying a heavy interest penalty for early withdrawal, depositors should carefully evaluate the safety of their thrift. For maximum security, depositors should pay close attention to the Federal Deposit Insurance Corp. account limits for full coverage on deposits.

Here’s a rundown of some of the best information sources on thrifts.

* Veribanc in Boston provides “instant” reports of its own safety rankings of the 29,000 banks, savings and loan associations and credit unions in the United States. These reports, which are provided over the phone and then in a follow-up written report, cost $10 for the first institution and $5 for each additional one.

Veribanc also publishes the Blue Ribbon Bank Report, which ranks banks in different regions of the country according to their safety. This report is $35, plus $3 shipping and handling. Finally, Veribanc publishes the Short Form Report, individual studies of each of the nation’s 29,000 banks, S&Ls; and credit unions. These are $25 each, plus $3 shipping and handling.

The reports may be ordered by calling (800) 442-2657 from 5:30 a.m. to 4 p.m. (PST) Monday through Friday.

* Bauer Financial Reports sells lists of banks and S&Ls; for each of the 50 states, detailing the thrifts’ assets, liabilities and the tangible capital ratio--one of the three key regulatory benchmarks used to evaluate the financial safety of these institutions. The lists sell for $50 per state. To order, call (800) 388-6686.

* IDC Financial Publishing offers quarterly and annual reports evaluating and ranking the nation’s banks. The cost is $138 for a single quarterly report and $389 for an entire year’s subscription. To order, call (800) 525-5457.

* Sheshunoff Information Services rates banks each quarter and publishes reports on individual banks, as well as industrywide lists detailing every institution in the nation. A complete report on an individual bank costs $110; a shorter capsule report is $25. Industrywide assessments are $125 per quarter and $325 for the entire year. To order, call (800) 456-2340.

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Q My wife and I have separate individual retirement accounts that are both quite small. Is it possible to combine these accounts to simplify our bookkeeping and reduce the amount we have to pay in annual charges? In some cases, combining two smaller accounts could also allow a taxpayer to take advantage of investment opportunities that require large amounts.

--R.H.

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A Although the reasons you detail might make a powerful case for commingling IRAs, it is forbidden by law. An IRA, as its very name implies, is meant for just one person. It must remain the individual’s separate account.

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Q I have been trying to refinance my home for six months and believed I had struck a deal with a lender that allowed me to take advantage of two discount programs for which I was qualified. We verbally agreed upon a rate and I immediately submitted a loan application. However, my loan officer said the application was denied because I could not use both discounts. Was the bank obligated to honor the commitment initially made by the loan officer?

--I.A.M.

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A As with most business agreements, if it’s not in writing, it doesn’t exist.

What you had was a loan application based on terms that your loan officer told you would pass muster. Your real problem is that your loan officer apparently didn’t know her business as well as she should; she misled you with erroneous information. Perhaps it’s time for you to find a new lender.

Homeowners looking to refinance should try to lock in the interest rate they’ve agreed to for as long as they can. Some lenders will offer lock-ins at no extra cost for 30 days, a period that could prove worthless if it takes 60 days to process the loan. Other lenders will guarantee the rate for the life of the loan application--but only for an upfront fee.

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Q I recently rented out my condo to a film crew making a television movie and received a “location fee.” The crew used the apartment for 14 days and told me that they would report my fee to the IRS. Later I was told that I didn’t have to report this income because they used the condo for 14 days. What should I do?

--K.W.

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A Even though the film production company will report the payment to the IRS, the actual income to you is not subject to taxation because Uncle Sam allows homeowners to rent their residences up to 15 days each year without declaring the payment as income.

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Carla Lazzareschi cannot answer mail individually but will respond in this column to financial questions of general interest. Write to Money Talk, Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, CA 90053. Or e-mail carla.lazzareschi@latimes.com