Bankers responding to record Midwest flooding

Community bankers are responding to the needs of their communities after record flooding inundated parts of South Dakota, Iowa and Minnesota last weekend. .Flooding in northwest Iowa damaged nearly 2,000 properties and caused evacuations and disaster declarations. Some parts of the state received more than 15 inches of rain, causing water levels to rise and some levees to break down. FEMA issued a disaster declaration for nine counties in northwest Iowa on June 24. According to the National Weather Service, the southeast South Dakota community of Canton received 18 inches of rain from June 20-22. Homes were washed away by rushing flood waters in North Sioux City, S.D. The Rapidan Dam south of Mankato, Minn., has been teetering on failure this week, after the Blue Earth River overran part of the century-old dam. .Primghar, Iowa, received 4-5 inches of rain from June 19-21, noted Gerald Leng, president of Savings Bank in Primghar. The city sits between the Big Sioux and Little Sioux rivers in northwest Iowa, increasing its flood risk. Crops have sustained damage locally, and water damage has occurred where sump pumps could not keep pace with the rising water. .The full impact of crop flooding is unknown and likely won't be realized until fall, Leng noted. Customers who live near the bank's branch in nearby Hartley, Iowa, have informed the bank of home damage. Though Iowa Gov. Kim Reynolds has pledged grant money to help the region recover from flooding, Leng noted funding often takes a considerable time to come through. In the meantime, the family-owned Savings Bank plans to offer signature loans to customers and non-customers with "decent credit," in the hope they eventually qualify for grant money. .The city of Spencer, Iowa was cut off from the rest of the state by floodwater on the night of June 22 as hundreds of residents were evacuated to two city shelters, noted Mayor Steve Bomgaars. The Little Sioux River reached a record 3 feet above its 500-year floodplain. Seth McCaulley, president of Spencer's Community State Bank, estimated 40 percent of buildings in the community were touching river water as of June 25. A significant percentage of buildings had major sewer backups. .Community State Bank was the first bank to reopen in Spencer with limited staffing as it was the farthest away from the Little Sioux River, McCaulley noted. The bank's branch in Cedar Rapids, Iowa, sustained severe flooding. Several bank employees reported considerable damage to their homes.