Citizens Bank Closes, Becomes Fifth US Bank to Fail in 2023

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Another blow hits the US banking sector as Citizens Bank shuts its doors due to financial troubles, marking the fifth bank closure of the year. The unexpected closure was facilitated by the Iowa Division of Banking, with the FDIC stepping in as the receiver.

Citizens Bank joins the ranks of Heartland Tri-State Bank, First Republic Bank, Signature Bank, and Silicon Valley Bank, which all faced closure in 2023. The FDIC has orchestrated a takeover, with Iowa Trust & Savings Bank assuming all of Citizens Bank’s deposits.

Customers need not panic, as depositors will seamlessly transition to Iowa Trust & Savings Bank, with branches reopening under the new ownership. Checks, ATMs, and debit cards will remain functional, and loan payments should continue as usual. With approximately $66 million in total assets and $59 million in deposits, Citizens Bank’s closure is estimated to cost the Deposit Insurance Fund $14.8 million. The FDIC underscores the importance of deposit insurance coverage, reassuring customers that their banking relationship remains intact.

While this closure underscores ongoing challenges in the banking sector, the FDIC emphasizes its commitment to protecting depositors and maintaining financial stability.