A squirrel might distribute hard-won acorns from one hulking stash to two smaller ones if he fears the first is unsafe.

It's called "protecting the nut."

At least two regional community banks, HomeTown Bank and Valley Bank, reported recently that they have experienced significant increases in both inquiries and deposits in the wake of bad news about Wachovia, struggles of other financial giants and a staggering stock market.

"The phone has been ringing and the door has been swinging," said Ellis Gutshall, president and chief executive officer of Valley Bank.

Steven Beach, associate professor of finance at Radford University, said intense uncertainty about big financial institutions and markets in general can rattle investors as well as depositors -- even when their deposits in larger banks are covered by the Federal Deposit Insurance Corp.

"For someone to move money to a community bank based on concern that their deposits are at risk can be a mixture of rational thinking and an emotion-driven response," Beach wrote in an e-mail.

Last week's financial rescue temporarily raised the FDIC's limit on deposit insurance -- increasing the limit from $100,000 to $250,000 per depositor, per institution. The increased coverage expires Dec. 31, 2009.

Keith Leggett, senior economist for the American Bankers Association, said Monday that the increases in FDIC coverage should assure most depositors that their money is safe, no matter the size of the institution with which they bank. Those whose deposits exceeding $250,000 might decide to move some money to other banks to qualify for FDIC coverage, he said.

Thus, banks of varied sizes, and not just community banks, might have experienced recent increases in deposits, Leggett said.

Ann Grochala, director of lending and accounting policy for the Independent Community Bankers of America, said many community banks have told association lenders of incoming cash flows.

In some cases, she said, customers are moving money from banks that are struggling or viewed as struggling to a community bank that they see is more stable.

"They may know the banker or people who work at the bank," Grochala said.

Of course, some community banks have also slumped during the mortgage meltdown.

On Sept. 12, Staunton-based Community Financial Corp., the holding company for Community Bank, reported significant losses associated with stock holdings in Fannie Mae and Freddie Mac. As a result, Community Financial reported it would "fall below the threshold needed to be considered well-capitalized," and the company's board of directors voted to suspend Community Financial's quarterly cash dividend.

Leggett said bank rating agencies such as Bauer Financial can provide some guidance to consumers about a bank's financial position. Bauer rates Valley Bank at four stars, considered "excellent," and both HomeTown and Wachovia banks at three stars, considered "adequate."

The rating examines a bank's capital strength as well as a host of other criteria, including profitability/loss trends, the level of delinquent loans, market versus book value of the investment portfolio, and historical data and liquidity.

Gutshall said Valley Bank fielded calls last week from individual depositors, investors, businesses and others who were considering moving funds into the bank or becoming new customers. On Friday, he estimated deposits have been "well into the seven figures, just this week."

Susan Still, chief executive officer for HomeTown Bank, said Friday that the bank had experienced a jump in deposits "just this past week," representing millions of dollars.

People who contacted HomeTown Bank last week to inquire about depositing funds, transferring or establishing accounts -- or to actually make those moves -- seemed to be reacting to news of Wachovia woes, she said.

But frustration with big financial institutions, with concern about their possible exposure to the mortgage debt crisis and related financial instability, has been growing for some time, Still said.

"We started seeing the influx [of new deposits] since the failure of IndyMac this summer," she said. "That's really when it seemed to catch on."

Staff writer Jeff Sturgeon contributed to this report.