FDIC orders 3 Minnesota banks to fix their lending practices

Published 7:40 pm Saturday, September 26, 2009

Federal regulators are ordering three more Minnesota community banks to change their lending practices and raise capitol as loan losses keep eroding their balance sheets.

The Federal Deposit Insurance Corp. has issued cease and desist orders to Community Security Bank of New Prague, First Resource Bank of Savage and Security State Bank of Lewiston.

The orders were issued last month, but made public Friday. All the banks were cited for unsound banking practices and operating without enough capital.

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Community Security Bank was also cited for unspecified violations of bank laws or regulations.