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Posted at: 09/25/2009 10:29 PM Local Banks in Trouble(ABC 6 NEWS)--- We've all heard about big banks failing.In 2009 alone, 95 banks failed in the United States. Some local banks are having trouble, too. The security state bank has locations in five southern Minnesota including Spring Valley, Wykoff and this one in Lewiston. Linda Dahl banks here. Yes I do, I have a checking and a savings account," Dahl says. She says she got a letter Thursday from the bank. "They assured us that it was something that would likely be taken care of and that they were working and it wasn't something that we had to worry about because it was still insured, so," says Dahl. Security State Bank says the turbulent economy has hit them, too. They say the FDIC, or Federal Deposit Insurance Corporation has given them a cease and desist order calling for them to work to resolve problem loans; loans they say were purchased primarily from other banks. Judy and Dean Belter bank here, too. "I know small town banks have had a hard time, especially lately so - I guess, I wasn't really surprised." We asked the bank's president and CEO, Mike Bue - if the FDIC injected money into the bank or took over some of the problem loans - Bue didn't want to share specifics and the FDIC press office didn't immediately return our calls. But Security State Bank issued a press release that says the great majority of their loan portfolio is healthy, they say they’re well capitalized and for customers, it’s business as usual. Dean Belter admits the first thing that came to mind when he got the letter, was to get his money out. "That's always your first thought," says Belter. But his money is safe, it's insured by the FDIC.
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