The federal bank deposit insurer late Friday announced the closure of the $66 million-in-assets Citizens Bank, Sac City, Iowa, and the purchase of the bank’s assets and assumption of all its deposits by Iowa Trust & Savings Bank in Emmetsburg.
The Federal Deposit Insurance Corp. (FDIC) said it estimated the cost to the Deposit Insurance Fund (DIF) at $14.8 million. “Compared to other alternatives, Iowa Trust & Savings Bank’s acquisition was the least costly resolution for the DIF,” the FDIC said in a statement.
As of this Sept. 30, Citizens Bank had approximately $66 million in total assets and $59 million in total deposits, the FDIC said. The state-chartered, federally insured bank was closed by the Iowa Division of Banking Friday, with the FDIC named receiver.
In addition to assuming all deposits, Iowa Trust & Savings Bank agreed to purchase essentially all of the failed bank’s assets, the FDIC said.
It said Citizens Bank is the fifth bank to fail in the U.S. this year. The last bank failure in Iowa, it said, was Polk County Bank, Johnston, Iowa, on November 18, 2011.