Citizens Bank in Sac City, Iowa, has been abruptly closed and seized by the Federal Deposit Insurance Corporation (FDIC) following a financial crisis. The FDIC has appointed Iowa Trust & Savings Bank, Emmetsburg, as receiver for Citizens Bank, ensuring all deposits are protected.
As of November 3, 2023, Citizens Bank had approximately $66 million in assets and $59 million in total deposits. Depositors can access their funds immediately by using checks or ATM/debit cards, with the two branches of Citizens Bank set to reopen as Iowa Trust & Savings Bank branches on Monday.
The FDIC has entered into a Purchase and Assumption Agreement with Iowa Trust & Savings Bank, which will assume all of Citizens Bank’s deposits. Customers do not need to change their banking relationship to retain deposit insurance coverage. However, they are advised to use their existing branch until further notice.
This marks the fifth bank failure in the nation this year, with the last incident occurring in Iowa back in 2011. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $14.8 million, highlighting the urgency of the situation and the need for a swift resolution.
Customers with questions or concerns about the transaction can contact the FDIC toll-free at 1-866-314-1744, which will be operational during extended hours over the weekend and on Monday.
The FDIC’s website provides additional information on the bank take-over and deposit protection measures.
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