I posted a story yesterday about Stockton in which I mentioned the former Delta Bank branch that now serves as the Republican Party HQ.  Delta Bank leased out the property like any other landlord for a standard paying tenant situation.  I didn’t mean to say that the Bank was in any way unstable, rather I was merely intending to point out the irony of the GOP office in a bank office. The economy has been hit hard in Stockton, and no business is immune. However, through sound business judgment from banks and borrowers, the economy in Stockton will certainly rebound. Local and regional banks, such as Delta Bank, will be key to this rebound.

I actually learned that Delta Bank was never involved in subprime lending, now that’s some solid decision-making.  While reviewing the story, I came upon this article in the Sacramento Bee noting that the smaller banks are actually faring much better than the big guys:

Still, bank executives and finance experts agree that smaller players are generally in better shape than big banks right now. Community banks and credit unions tend to invest more conservatively. While big financial companies such as Lehman Bros. and Washington Mutual Inc. were sowing trouble with risky home mortgage investments, local institutions held back. … Still, officials with River City and El Dorado Savings said that they’ve seen an uptick in new accounts recently, although they wouldn’t disclose details. Both attribute the business to disenchantment with their bigger rivals.(SacBee 9.19.08)

So, feel safe using these local banks, like say Delta Bank (they even have a pretty nice online banking system!). In addition to the fact that the federal government insures most deposits, dealing locally contributes significant economic benefits to the local economy.