Citizens Bank in Sac City, a financial institution that has served the community since 1929, has been closed by the Iowa Division of Banking. This marks the first bank closure in Iowa since 2011. The decision to close Citizens Bank was announced Friday evening after a joint examination of the bank, where significant loan losses were uncovered that had not been previously identified by the bank, resulting in the insolvency. Iowa Superintendent of Banking Jeff Plagge says Citizens Bank had a concentration of out-of-territory and out-of-state loans within a particular industry, which resulted in substantial losses. The main office and drive-up facility of the bank reopened Monday as a branch of Iowa Trust & Savings Bank in Emmetsburg. Iowa Trust & Savings Bank has acquired all consumer, business, and public deposits, ensuring there is no financial loss to any depositors. Additionally, the bank has purchased all available loans. The Iowa Banking Division facilitated the transition, tendering the receivership of Citizens Bank to the Federal Deposit Insurance Corporation (FDIC). The FDIC, which insures qualified deposits up to $250,000, has established a toll-free number for customers of Citizens Bank to address any concerns or inquiries regarding the closure. That number is 866-314-1744. The FDIC’s website also provides additional resources for those affected by the closure, and a link to that page is included below.
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