When Nina Milano wanted to expand her small business earlier this year, she ran into a little snag.

"We came across a problem of lending," Milano said. "We couldn't find banks who were willing to lend money to small businesses."

Milano runs La Therapie Spa at Preston and had no other outstanding loans, but she still was unable to get the money until she turned to Crescent State Bank, a community bank based in Cary.

"Whenever i have a problem, they're right there to help me," she said. "I don't have to call 1-800 numbers ten times."

With so much bad news about large nationwide banks, smaller community banks are actively pursuing customers and working to get them to switch.

Crescent's deposits are up more than $33 million and NC Bankers Association Vice-President Paul Stock says community banks like Crescent, North State and Gateway are benefiting from a larger pattern of a return to saving.

"Ever since the amount of FDIC deposit insurance was increased from $100,000 to $250,000, we've seen a steady inflow of deposits," he said.

Community banks don't have all the conveniences of larger chains, but they are using what they do have to get people in the door.

For example, Gateway is giving away two tickets to cancun in a drawing to people who open accounts and Crescent is offering a 5 percent interest bearing checking account.

"We don't have locations on every corner," Crescent Chief Operating Officer Ray Vaughn said. "We have 15 offices in our markets and so we have to depend on our people to deliver that high level of service and reach out."

Customers say that service is making all the difference.

Julie and Robert Pengilly recently got a mortgage through Crescent and now they're transferring all their accounts from other banks into this one.

"The combination of their products and their customer service was a winner for us," Robert said.