The Iowa Superintendent of Banking has closed a Sac County bank, the first bank closing in Iowa since 2011.
Citizens Bank in Sac City opened in 1929. According to a news release issued Friday night by the Iowa Banking Division, the bank was declared insolvent after bank examiners identified significant loan losses that previously had not been identified by the Sac City bank.
The news release said 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 any depositor. Iowa Trust and Savings Bank in Emmetsburg has purchased all deposits and is reopening the bank’s main office and drive through in Sac City Monday.
The Sac City bank had nearly 59 million dollars 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. Deposits of up to 250-thousand dollars in the Sac City bank are insured by the federal agency. According to the FDIC’s website, customers of Citizens Bank are still able to use their debit cards and checks — and automatic deposits will continue as usual.
