SAC CITY — The Iowa Superintendent of Banking has closed a Sac City 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 said 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 on Monday.
The news release from the Iowa Banking Division indicates the Sac City bank had nearly $59 million 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 $250,000 in the Sac City bank are insured by the federal agency. According to the FDIC’s website, customers of Citizens Bank are able to use their debit cards and checks and automatic deposits will continue as usual.