Economic News

Citizens Bank Is The 5th Bank To Fail In 2023 - Is Your Next?

Citizens Bank, a 94-year-old establishment in Sac City, has closed after significant out-of-state loan losses, according to a news release from the Federal Deposit Insurance Corp.

The bank reported $65,558,000 in assets and $58,930,000 in total deposits in the third financial quarter, leading to its Nov. 3 closure, according to the release. The FDIC said no advance notice is required when a financial institution is closed.

The Citizens Bank main office and drive-up will reopen Monday under the operation of Iowa Trust & Savings Bank in Emmetsburg. The Iowa Trust & Savings Bank bought all consumer, business and public deposits to prevent losses for depositors. The bank also purchased available loans, according to the release.

Examiners found "significant loan losses" previously unidentified by Citizens Bank. The bank had a concentration of, "out-of-territory and out-of-state loans" to a specific industry and were hit with heavy losses on some loans, according to the release.

The Nov. 3 bank closure is the first in Iowa since 2011. The FDIC has assumed all deposits and most assets of the bank.

Common questions around the bank closure, answered by FDIC

Is my money safe?

Yes, according to the FDIC, no person lost money on their deposits despite the closure. All deposits were transferred to Iowa Trust & Savings Bank.

Do I have access to my money?

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Consumers can continue to use the same checks and will still clear up to the balance in the holder's account. ATM and debit cards will also work as normal. The total balance in checking, savings, money markets, certificates of deposit and retirement accounts have been transferred to the Iowa Trust & Savings and will be available, according to the FDIC.

What happens to direct deposits?

All direct deposits like social security, payroll, veterans' benefits, disability, unemployment or other electronic payment will continue as normal.

Will autopayments/ bill pay/ online banking still work?

Yes. The holder's routing number and account number will be the same until they are notified otherwise in writing by the Iowa Trust & Savings Bank.

 

Originally published by: Noelle Alviz-Gransee on Des Moines Register

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