FDIC & Bank Fail Alert! Iowa Trust & Savings Bank, Emmetsburg, Iowa, Assumes All of the Deposits of Citizens Bank, Sac City, Iowa.
Citizens Bank, Sac City, Iowa, was closed today by the Iowa Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC entered into a Purchase and Assumption Agreement with Iowa Trust & Savings Bank, Emmetsburg, Iowa, to assume all of the deposits of Citizens Bank.
The two branches of Citizens Bank will reopen as branches of Iowa Trust & Savings Bank on Monday during normal business hours. This evening and over the weekend, depositors of Citizens Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
Depositors of Citizens Bank will become depositors of Iowa Trust & Savings Bank, so customers do not need to change their banking relationship in order to retain their deposit insurance coverage. Customers of Citizens Bank should continue to use their existing branch until they receive notice from Iowa Trust & Savings Bank that it has completed systems changes to allow its branch offices to process their accounts as well.
As of September 30, 2023, Citizens Bank had approximately $66 million in total assets and $59 million in total deposits. In addition to assuming all of the deposits, Iowa Trust & Savings Bank agreed to purchase essentially all of the failed bankโs assets.
Customers with questions about the transaction should call the FDIC toll-free at 1-866-314-1744. The phone number will be operational this evening until 9:00 p.m. Central Time (CT); on Saturday from 9:00 a.m. to 6:00 p.m. CT; on Sunday from noon to 6:00 p.m. CT; on Monday from 8:00 a.m. to 8:00 p.m. CT; and thereafter from 9:00 a.m. to 5:00 p.m. CT. Interested parties can also visit the FDICโs website.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $14.8 million. Compared to other alternatives, Iowa Trust & Savings Bankโs acquisition was the least costly resolution for the DIF, an insurance fund created by Congress in 1933 and managed by the FDIC to protect the deposits at the nationโs banks. Citizens Bank is the fifth bank to fail in the nation this year. The last failure in Iowa was Polk County Bank, Johnston, Iowa, on November 18, 2011.
Wut Mean?:
- Citizens Bank in Sac City, Iowa, was closed by the Iowa Division of Banking.
- The Federal Deposit Insurance Corporation (FDIC) was appointed as the receiver.
- FDIC entered a Purchase and Assumption Agreement with Iowa Trust & Savings Bank to assume all deposits of Citizens Bank.
- Citizens Bank branches will reopen as Iowa Trust & Savings Bank branches on Monday.
- Citizens Bank depositors can access funds this weekend via checks, ATMs, or debit cards.
- Loan customers of Citizens Bank should continue making payments as usual.
- Citizens Bank depositors will become Iowa Trust & Savings Bank depositors with no need to change banking relationships.
- Customers should use their existing branch until Iowa Trust & Savings Bank integrates their accounts.
- As of September 30, 2023, Citizens Bank had about $66 million in assets and $59 million in deposits.
- Iowa Trust & Savings Bank will purchase most of the failed bankโs assets.
- The estimated cost to the Deposit Insurance Fund for this failure is $14.8 million.
- Iowa Trust & Savings Bank's acquisition was the least costly resolution for the Deposit Insurance Fund.
- Citizens Bank is the fifth U.S. bank to fail in the current year.
- The last bank failure in Iowa was Polk County Bank on November 18, 2011.
TLDRS:
- Citizens Bank in Sac City, Iowa, was closed by the Iowa Division of Banking.
- The Federal Deposit Insurance Corporation (FDIC) was appointed as the receiver.
- FDIC entered a Purchase and Assumption Agreement with Iowa Trust & Savings Bank to assume all deposits of Citizens Bank.
- Citizens Bank branches will reopen as Iowa Trust & Savings Bank branches on Monday.
- As of September 30, 2023, Citizens Bank had about $66 million in assets and $59 million in deposits.
- Iowa Trust & Savings Bank will purchase most of the failed bankโs assets.
- The estimated cost to the Deposit Insurance Fund for this failure is $14.8 million.
- Citizens Bank is the fifth U.S. bank to fail in the current year.
