Another Painful Bank Failure Is Now Declared in Iowa

November 4, 2023

Another painful bank failure is now declared in Iowa after regulators discovered significant loan losses on its balance sheet.

The Federal Insurance Corporation (FDIC) is adding Citizens Bank in Sac City to its list of failed banks, and says Iowa Trust & Savings Bank has assumed all deposits in order to protect depositors.

The bank’s pair of physical locations will reopen as Iowa Trust & Savings Bank on Monday, reports DailyHodl.

Citizens Bank was established in 1929 and is the first bank closure in Iowa since 2011.

Its closure represents the fifth bank failure in the US this year, following the collapse of Heartland Tri-State Bank, First Republic Bank, Signature Bank and Silicon Valley Bank.

According to the Iowa Division of Banking, the bank had about $66 million in total assets and $59 million in total deposits as of September of this year.

“During a joint and ongoing examination of the bank, examiners identified significant loan losses that had not previously been identified by the bank.

The bank was declared insolvent.

The bank had a concentration of out-of-territory and out-of-state loans to one industry and incurred heavy losses on some of those loans.”

As a whole, the banking industry has been plagued by underwater bond portfolios throughout 2023, triggered by a series of aggressive rate hikes from the Federal Reserve, reports DH.

“The pitfalls of these so-called unrealized losses came into focus early this year amid the collapse of Silicon Valley Bank.

An abrupt run on the bank back in March was sparked by an announcement that the bank had booked a $1.8 billion loss from selling a portion of its underwater bond portfolio.

According to a recent report from Moody’s, the industry is facing approximately $650 billion in unrealized losses that don’t have to be marked at market value.”

Also Read: Massive California Banks Are Now Closing According To New Reports

Other Banking News Today

A massive bank now closes 12 new branches in Ohio intensifying the state’s already growing closures.

Today, Park National Bank joined the growing list of bank closures after announcing 12 branches will be shuttering in Ohio.

The bank is also headquartered in Ohio.

Earlier this year, it was reported that Ohio outpaces the national average for bank branch closures.

In Ohio, 4.8% of branches were closed between 2020 and 2021, while 4.3% shuttered between 2021 and 2022.

This compares with the national average of 3.2%.

“If the trend of current bank branch closings continues, there may be no bank branches left in 10 years,” reports TheStreet.

“As banks continue to close, there is a fear that this could lead to banking deserts in some communities.”

The following Park National Bank branches are expected to close down in Ohio:

758 Wheeling Ave, Cambridge
898 East St, Athens
2810 Maysville Pike, Zanesville
220 E. State St, Newcomerstown
1274 Hills Rd, N. Pickerington
205 North Seltzer St, Crestline
2148-G Eagle Pass, Wooster
800 North Main St, Celina
8 West Maple St, North Lewisburg
2035 Dayton Lakeview Rd, New Carlisle
1176 West Main St, Tipp City E
5100 ST. RT. 132, Owensville

Also Read: Massive Banks in Texas Now Announce Closures For 2024

Market News Published Daily 📰

Don’t forget to opt-in for push notifications so you don’t miss a single article!

Also, thank you to all of our blog sponsors. This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

You can also follow me on Twitter, Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.

More Market News 📰

Become a Sponsor for only $1/mo.

Gain access to EXCLUSIVE FrankNez articles you won’t find here.
Become part of a private and safe Discord community, just for retail investors.
Get drawn at the end of the year for holiday giveaways.

Become a Sponsor Today!