Citizens Bank, Sac City, Fifth Bank In The US To Be Shuttered This Year

It appears that we are not yet in the clear when it comes to bank closures. Citizens Bank, Sac City, Iowa, on Friday was the latest to be shut down by regulators, which follows a number of high profile banks that were shut down in the first half of this year, including Silicon Valley Bank, First Republic Bank, and Signature Bank.

Citizens Bank, Sac City, was shuttered by the Iowa Division of Banking, while appointing the Federal Deposit Insurance Corporation as receiver. The regional bank, which had two locations, will open on Monday as branches of Iowa Trust & Savings Bank, following the FDIC assuming the deposits of Citizens Bank under a purchase and assumption agreement.

It should be noted that this is not in fact Citizens Financial Group (NYSE: CFG), which many social media commentators have erroneously claimed.

In a release issued by the Iowa Division of Banking, it is said that the Superintendent of Bank of the State of Iowa, Jeff Plagge, closed the bank and tendered its receivership following examiners identifying significant loan losses that had not previously been identified by the bank, with the bank then being declared insolvent. Particularly, the bank is said to have a concentration of out-of-territory and out-of-state loans to one undisclosed industry, which incurred heavy losses.

As of September 30, 2023, the bank is said to have had $66 million in total assets and $59 million in deposits. The total cost to the deposit insurance fund as a result of the failure is estimated at $14.8 million, as per the FDIC.

The failure of Citizens Bank is the fifth such bank failure in 2023 in the US.


Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

SSR Mining Q1 Earnings: Costs Continue To Climb

Recommended

First Majestic Makes Second Major Discovery At Santa Elena In Just A Year

PTX Metals Hits 235.1 Metres Of Copper, Nickel Mineralization In Longest Intercept To Date At W2

Related News

FDIC Initiates Marketing Process for $33 Billion Signature Bank Commercial Loan Portfolio

The Federal Deposit Insurance Corporation (FDIC) has officially commenced the marketing process for the approximately...

Wednesday, September 6, 2023, 11:42:00 AM

FDIC Flags Mounting Credit Card, Commercial Real Estate Risks for Banks

The latest quarterly report from the Federal Deposit Insurance Corporation (FDIC) revealed escalating credit card...

Friday, March 8, 2024, 03:07:00 PM

FDIC Corrects Reuters, Refutes Claims Of Requiring Signature Bank Acquirer To Give Up Crypto

The Federal Deposit Insurance Corporation (FDIC) denied that any buyer of Signature Bank would be...

Friday, March 17, 2023, 10:00:33 AM

New CEO Says There’s ‘No Single Safer Place’ for Deposits Than in the New SVB

Silicon Valley Bank has been reopened as Silicon Valley Bridge Bank after being taken over...

Friday, March 17, 2023, 12:01:00 PM

FDIC Calls for Banks to Correct Underreported Uninsured Deposits

In the wake of a recent banking crisis, the US FDIC has issued a call...

Monday, July 24, 2023, 01:29:54 PM