The Bank Slate


Citizens Bank becomes Iowa’s first failure since 2011

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.

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