THE IOWA SUPERINTENDENT OF BANKING HAS CLOSED SAC CITY’S CITIZEN’S BANK, THE FIRST BANK CLOSING IN IOWA SINCE 2011.
THE BANK, WHICH OPENED IN 1929, WAS DECLARED INSOLVENT AFTER BANK EXAMINERS “IDENTIFIED SIGNIFICANT LOAN LOSSES THAT PREVIOUSLY HAD NOT BEEN IDENTIFIED” BY THE SAC CITY BANK.
THE IOWA BANKING DIVISION OFFICE SAYS 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 SAID THERE WILL BE NO LOSS TO ANY DEPOSITOR.
IOWA TRUST AND SAVINGS BANK IN EMMETSBURG HAS PURCHASED ALL DEPOSITS AND RE-OPENED THE BANK’S MAIN OFFICE AND DRIVE THROUGH IN SAC CITY TODAY (MONDAY).
THE SAC CITY BANK HAD NEARLY $59 MILLION IN DEPOSITS WHEN IT WAS CLOSED.
THE FEDERAL DEPOSIT INSURANCE CORPORATION HAS A TOLL-FREE LINE SET UP FOR CUSTOMERS OF THE BANK WHO HAVE QUESTIONS.
CUSTOMERS OF CITIZENS BANK ARE ABLE TO USE THEIR DEBIT CARDS AND CHECKS AND AUTOMATIC DEPOSITS WILL CONTINUE AS USUAL.
Radio Iowa (photo from bank website)
