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Iowa bank failed because of trucking investments

December 11, 2023

As trucking firms seek to move past sluggish conditions, the market continues to claw at loan repayments and carriers’ ability to survive.

The failure of Citizens Bank of Sac City, in Iowa, last month and credit risks with some banks’ portfolios in the transportation sector have shown what’s at stake.

As far as whether other banks in Iowa could face similar fates, Iowa Division of Banking Superintendent Jeff Plagge said the state hasn’t seen other institutions with as high a concentration of trucking loans.

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