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With the collapse of giant financial institutions in the third quarter of 2008, some industry experts are predicting a bigger push toward a community-based model of banking and investing in 2009.

In the midst of numerous big-bank mergers and acquisitions in late 2008, many community banks proved they have the muster to make it on their own: California Community Bank reported 24 percent loan growth in Q3 2008, and many of its Bay Area counterparts posted positive third quarter performance as well. In the same quarter, Ilwaco, Wash.-based ShoreBank Pacific reported its tenth consecutive quarter of record earnings: The bank’s assets increased 11 percent for the quarter, and 34 percent for the year.

Because most community banks did not get involved heavily in mortgage lending, focusing instead on small business loans, and because they generally don’t take on huge loans from outside institutions, community banks are a bit sheltered from the turmoil within the big banking industry.

In 2009, banking will follow a trail blazed by local food and agriculture movements, with business and investors flocking to smaller institutions that emphasize community and sustainability, says Don Shaffer, CEO of RSF Social Finance, an investing, lending and philanthropic services firm based in San Francisco.

“People are crying out for more meaningful investments,” Shaffer says. “We’re seeing an increase in people putting their money where their values are,” Shaffer says, adding that he thinks business and investors will gravitate toward institutions such as ShoreBank Pacific and San Francisco-based New Resource Bank and away from the perceived culprits of the 2008 Wall Street meltdown.

In a letter to stakeholders, ShoreBank President Dave Williams attributed 2008’s financial disruptions in part to banks that had “separated the loan from the community,” and entered into loans without providing for their long-term repayment. Smaller banks—which are not heavily involved in real estate and tend to be more diversified in their loan portfolios—are therefore better situated to ride things out.