Bank Failure: Citizens Bank Closed Amid Financial Instability

Iowa’s Citizens Bank Shuttered

Citizens Bank, based in Sac City, Iowa, has been shuttered due to financial instability, marking the fifth US bank failure in 2023. The Iowa Division of Banking sanctioned the Federal Deposit Insurance Corporation’s (FDIC) takeover on Friday, November 3, with the FDIC subsequently appointed as receiver.

Funds and Assets Assumed by Iowa Trust & Savings Bank

An agreement has been reached between Iowa Trust & Savings Bank and Citizens Bank to assume all deposits and assets. The assets are valued at $66 million, while deposits amount to $59 million. The branches of Citizens Bank will reopen under the new bank during normal business hours on Monday.

Smooth Transition for Customers

Customers can access funds via checks or ATM/debit cards over the weekend, and loan payments should continue as usual. Despite the systems changes, deposit insurance for Citizens’ customers remains unaffected.

Least Costly Resolution

This acquisition marks the first bank closure since Polk County Bank’s failure in 2011. With a cost of $14.8 million to the Deposit Insurance Fund (DIF), it is considered the least costly resolution. This trend of bank closures began with First Citizens Bank on March 10, making it the fifth banking failure in 2023 within the US.

This article was generated with the support of AI and reviewed by an editor.