The Superintendent of Banking of the State of Iowa, Jeff Plagge, by and through the Iowa Division of Banking closed Citizens Bank, Sac City, and tendered the receivership of Citizens Bank to the Federal Deposit Insurance Corporation (FDIC).
Citizens Bank was established in 1929 and had a main office and drive-up facility at the time of closure. As of its third quarter call report, Citizens Bank reported $65,558,000 in total assets and $58,930,000 in total deposits. Citizens Bank is the first Iowa bank to be closed since 2011.
During a joint and ongoing examination of the bank, examiners identified significant loan losses that had not previously been identified by the bank. The bank was declared insolvent. The bank had a concentration of out-of-territory and out-of-state loans to one industry and incurred heavy losses on some of those loans.
The main office and drive-up facility will reopen Monday as a branch of Iowa Trust & Savings Bank, Emmetsburg. Iowa Trust & Savings Bank purchased all consumer, business, and public deposits so there is no loss to any depositors. They also purchased all available loans.
The FDIC insures qualified deposits to $250,000. For additional information, the FDIC has established a toll-free number for customers of Citizens Bank. The toll-free number is 866-314-1744. The phone number will be operational this evening until 9:00 p.m. Central Time (CT); on Saturday from 9:00 a.m. to 6:00 p.m. CT; on Sunday from noon to 6:00 p.m. CT; on Monday from 8:00 a.m. to 8:00 p.m. CT; and thereafter from 9:00 a.m. to 5:00 p.m. CT. Interested parties may also visit the FDIC’s website at https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/citizensbank.html.