Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
📈 Free Gift Friday: Instantly Copy Legendary Investors' PortfoliosCopy for Free

Iowa's Citizens Bank shuttered; assets and deposits assumed by Iowa Trust & Savings Bank

EditorHari G
Published 11/04/2023, 04:05 AM
© Reuters.

Citizens Bank, based in Sac City, Iowa, has been shuttered due to financial instability, marking the fifth US bank failure in 2023. The Iowa Division of Banking sanctioned the Federal Deposit Insurance Corporation's (FDIC) takeover on Friday, November 3, with the FDIC subsequently appointed as receiver.

A Purchase and Assumption Agreement was made with Iowa Trust & Savings Bank to assume all deposits and assets from Citizens Bank. The assets are valued at $66 million while deposits amount to $59 million. The branches of Citizens Bank will reopen under the new bank during normal business hours on Monday.

Customers can access funds via checks or ATM/debit cards over the weekend and loan payments should continue as usual. Despite the systems changes, deposit insurance for Citizens' customers remains unaffected.

The transition incurs a $14.8 million cost to the Deposit Insurance Fund (DIF), a fund established by Congress in 1933 for deposit protection. This acquisition marks the first since Polk County Bank's failure, the last in Iowa in 2011. It is considered the least costly resolution.

This bank closure follows a trend that started with First Citizens Bank on March 10, making it the fifth banking failure in 2023 within the US.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Bank failures are not a ''new trend''. Most bank failures are small potatoes acquired by another mostly unheard of bank. This is the link to the FDIC's failed bank list going back as far as October 2000: https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/
 We're in the early years of the sixth stage of the cybernetic Kondratieff wave. Maybe with time (and inevitable lawsuits and worse case scenarios) standards will become available in all areas of AI.
Hmm. I had to look that up. Interesting.
I chased down an old article to find you......please don't take anything I post too seriously or personally.  Feel free to try to offend me, just like the stooges do daily.  I do not know you, nor do you know me, so if you think I am insulting you, just try to laugh it off.  I am amazed at the intelligence behind many of your posts, so don't stop- just fight back.
zero bank failure in 2021 and 2022. suddenly, 5 bank failures so far in 2023. high interest rates would cause more failures.
5th failure. how many more to go till yearend? dire situation.
Silvergate
if this news were released last Friday, mkt would have closed negative. probably. mkt begins a massive downward spiral on monday.
Lol thats delusional its a tiny bank
it was released on Friday before market closed and nothing happened. fitch also stated that credit ratings of top us banks r vulnerable and nothing happened
Banks take care of each other. This bank will be bought by a conglomerate of larger banks. All in the effort to prevent a "Run on the Bank" frenzy in the US. It failed because rhe Regulators were asleep at the helm.  Easily prevented. In other news, the IDF is tearing the Ham Brothers a new Alpha Hotel. Later, Charles.
The article clearly states who bought the bank
"Despite the systems changes, deposit insurance for Citizens' customers remains unaffected." What? Hari G, read this and thought it worthy? And is G Hari's last name, or is he just cautious of full reputational accountability?
"It is considered the least costly resolution." By whom? AI written articles "reviewed" by editors who don't know what they are doing are fast becoming a stain on this site.
The FDIC I assume. I like the AI articles they don't have the typical writers bias
Yeah. I love articles that leave us having to make assumptions.
This AI writes better than the uber gig hacks that normally shill for the democrats...
Nothing to see here folks!
Bank failures are not a new trend. Most are small potatoes. #FDIC# failed bank list#
Stock would have an huge gap down on Monday, banks collapse domino effects
Smooth transition to Iowa Trust and Savings Bank. Account holders unaffected and a windfall for Iowa Trust.
There is no stock involved
RepiglaCONS over eat
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.