What to know about the first Iowa bank closure since 2011

Des Moines Register ^ | 11/06/2023 | Noelle Alviz

[thegagline]

Citizens Bank, a 94-year-old establishment in Sac City, has closed after significant out-of-state loan losses, according to a news release from the Federal Deposit Insurance Corp.

The bank reported $65,558,000 in assets and $58,930,000 in total deposits in the third financial quarter, leading to its Nov. 3 closure, according to the release. The FDIC said no advance notice is required when a financial institution is closed.

The Citizens Bank main office and drive-up will reopen Monday under the operation of Iowa Trust & Savings Bank in Emmetsburg. The Iowa Trust & Savings Bank bought all consumer, business and public deposits to prevent losses for depositors. The bank also purchased available loans, according to the release.

Examiners found "significant loan losses" previously unidentified by Citizens Bank. The bank had a concentration of, "out-of-territory and out-of-state loans" to a specific industry and were hit with heavy losses on some loans, according to the release.

The Nov. 3 bank closure is the first in Iowa since 2011. The FDIC has assumed all deposits and most assets of the bank.

[thegagline]

An underreported story. The bank is heavily involved with the trucking industry. The dominoes are falling.

[GOPJ]

Examiners found "significant loan losses" previously unidentified by Citizens Bank. The bank had a concentration of, "out-of-territory and out-of-state loans" to a specific industry and were hit with heavy losses on some loans, according to the release.

Other than the above it's nicely written story. All depositors need to know NOT to panic. Whoever wrote it is a no-drama momma.... Which is a nice change over the MSM...

Trucking you say? What do you know?

[woodbutcher1963]

I was told the same thing by the president of the local bank that I am a shareholder. He stated it was a trucking company. That they had huge loans to one customer. The old too many eggs in one basket scenario. That the loans outstanding were with only a few customers. I wonder IF it was Yellow Freight Lines??? That is the only major trucking company that went tits up recently.

[GOPJ]

Interesting... thanks for sharing.