Aug. 23--More than 80 of America's banks have failed this year, including one in the Northern San Joaquin Valley, as the recession takes it toll on financial institutions.

Are more locally owned banks in trouble?

Perhaps. But others are healthy.

Banks recently filed their second-quarter financial statements, which made public in-depth data on how they're faring. And at least two financial rating agencies have scored this region's banks and credit unions, issuing stars based on their perceived stability.

Some of the region's banks earned top marks, including Lodi-based Farmers & Merchants Bank of Central California, also known as F&M Bank.

A couple scored poorly. One was Tracy's Community Banks of Northern California.

Either way, bank and credit union deposits are safe. They're insured by federal agencies up to $250,000.

"Customers don't have to worry about the safety of their money," assured David Barr, spokesman for the Federal Deposit Insurance Corp. "Customers are protected."

But when locally owned banks fail, their communities suffer.

County Bank, Merced's only local bank, went belly up in February. Its assets and 39 offices were taken over by Westamerica Bank, but its stockholders and dozens of employees were out of luck.

Locally owned and controlled banks are vital for the financial health of a community, said Kent Steinwert, F&M Bank's president. Steinwert said community banks help create wealth in their home region because they employ more local people, make more local loans, purchase more local products, support more local charities than do banks whose headquarters are elsewhere.

"Local banks have a very strong penchant for investing in their community to make it a better place to live," said Steinwert, whose bank is owned by 1,470 valley families, including many in Stanislaus County. The bank has four branches in Modesto and three in Turlock. "We are very fortunate. About half of our loan portfolio is agricultural, and ag in the valley remains very strong."

F&M Bank garnered the highest possible ratings for financial strength from Bankrate.com and Bauer Financial. In the fiscal quarter that ended June 30, the bank reported that less than 1 percent of its loans and leases are behind on payments.

Tracy bank 'below average'

On the opposite end of the scale, Tracy's CBNC received the lowest possible rating from Bauer and Bankrate.com. And it reported that 37.64 percent of its loans and leases are not current on payments. FDIC statistics show CBNC's bad debt rate is higher than 99 percent of its banking peers.