Citizens Bank of Sac City, Iowa, failed Friday after examiners “identified significant loan losses that had not previously been identified by the bank,” the Iowa Division of Banking announced.
The $66 million-asset bank’s collapse marks the fifth bank failure this year and stemmed from loans made to the commercial trucking industry, Iowa Superintendent of Banking Jeff Plagge told the Des Moines Register.
State regulators Friday said 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.”
