A bank in Sac City was declared insolvent and closed at the end of last week.
According to a press release by the Iowa Division of Banking, Citizens Bank in Sac City was closed on Friday. It’s the first bank closure in Iowa in 12 years. The bank was declared insolvent after bank examiners identified significant loan losses that the bank previously had not identified.
According to the news release, the bank had a concentration of out-of-state loans to one industry, and there had been heavy losses on some of those loans. The state banking superintendent’s office says there will be no loss to depositors. Citizens Bank in Sac City reportedly had nearly 59 million dollars in deposits when it closed.
The Federal Deposit Insurance Corporation was appointed as receiver. The FDIC says the Iowa Trust and Savings Bank in Emmetsburg has assumed all of Citizen Bank’s deposits in order to protect depositors.
Citizens Bank in Sac City opened in 1929. Customers can still use debit cards and checks. Automatic deposits will continue as usual. Customers who have any questions can contact the FDIC toll-free at 1-866-314-1744.