FORT WALTON BEACH, FL - The financial crisis is hitting home at some local banks.

A national website recently gave several banks in our area a ranking of "D" or below.

But as Channel Three's Laura Hussey learned, those rankings may not tell the whole story about whether your money is safe.

With his clients' money caught up in the Wachovia-Citi merger, investment manager Kabe Woods doesn't mince words about the financial crisis.

Kabe Woods/KLW Investments "To me it's just nauseating, it makes you sick to your stomach"

Woods is looking for a safer, local bank for his escrow accounts. He says bank ratings like those on thestreet.com can be a shock.

Kabe Woods "You see sometimes inconsistent data, and/or data that you actually didn't expect...you know, a rating that's low and you say what the heck happened here....you know, I know those guys"

First City Bank and Beach Community Bank in Fort Walton Beach were among those "The Street" rated "D" or below. The website posts its criteria, from capital to stability, but Beach Community Bank President Tony Hughes says they don't have any inside information.

Tony Hughes/Beach Community Bank "No rating agency has ever set foot in this bank. No representative of a rating agency has ever talked to me, has ever looked at a loan, all those records are confidential."

Instead, numerous independent rating companies use quarterly reports filed with the FDIC......the same ones available to the general public on the FDIC website.

The Director Of Florida's Division Of Financial Institutions says the reports are useful, but incomplete.

Linda Charity/Director, Florida Division of Financial Institutions "This is not the picture of a Financial Institution's health and safety and soundness. There are other factors, other critical factors, that go into the assessment"

Linda Charity says regulators examine banks thoroughly every year. And most important, the FDIC insures all deposits up to a hundred thousand dollars.

Kabe Woods "In terms of the money being protected, it's protected and the FDIC has never bailed on anybody"

Woods and other financial experts say raising the F-D-I-C insurance cap would help local banks.

Investors would be able to leave larger amounts of money in place, giving the banks more capital to work with.

To see a complete list of the bank ratings, click on Newslinks.Local Banks In Trouble