Citizens Bank in Sac City, Iowa, has failed.
The Iowa Division of Banking closed the $66 million-asset bank before appointing the Federal Deposit Insurance Corp. to act as receiver. The FDIC agreed to sell the bank’s deposits and “essentially all” of its assets to Iowa Trust & Savings Bank in Emmetsburg.
The state regulator said in a press release that examiners “identified significant loan losses that had not previously been identified by the bank.” Citizens had a concentration of out-of-market loans in one industry.
Citizens’ two branches will reopen as branches of Iowa Trust & Savings. The bank had $59 million of deposits.
The FDIC estimated that the failure will cost to the Deposit Insurance Fund $14.8 million. The last failure in Iowa was Polk County Bank in 2011.