Citizens Bank becomes fifth US bank to fail in 2023

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The US banking crisis deepens as Citizens Bank, a regional American bank, is forced to close due to financial difficulties. The Federal Deposit Insurance Corporation (FDIC) has taken control of the bank without any prior public announcement.

Citizens Bank is the fifth US bank to fail this year, following Heartland Tri-State Bank, First Republic Bank, Signature Bank, Silicon Valley Bank, and First-Citizens Bank. The spate of bank failures began on March 10, 2023, with the closure of First-Citizens Bank.

The FDIC has entered into a Purchase and Assumption Agreement with Iowa Trust & Savings Bank, Emmetsburg, Iowa, to assume all deposits of Citizens Bank. The two branches of Citizens Bank will reopen as branches of Iowa Trust & Savings Bank on Monday during normal business hours.

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Depositors of Citizens Bank can continue to access their money through checks, ATMs, or debit cards. Loan customers should continue making payments as usual.

Depositors of Citizens Bank will automatically become depositors of Iowa Trust & Savings Bank, so no action is required to retain deposit insurance coverage. Customers should continue using their existing branch until Iowa Trust & Savings Bank completes system changes to process their accounts.

As of September 30, 2023, Citizens Bank had approximately $66 million in total assets and $59 million in total deposits. Iowa Trust & Savings Bank has agreed to purchase essentially all of the failed bank’s assets.

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The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $14.8 million. Iowa Trust & Savings Bank’s acquisition was the least costly resolution for the DIF, a fund created by Congress in 1933 to protect bank deposits.

Citizens Bank is the fifth bank failure in the US this year and the first in Iowa since Polk County Bank in 2011.

Citizens Bank

Citizens Financial Group, Inc. is an American bank headquartered in Providence, Rhode Island, which operates in the states of Connecticut, Delaware, Florida, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, and Virginia, as well as Washington, DC.

  • Headquarters: Providence, Rhode Island, United States
  • Founded: 1828, Providence, Rhode Island, United States
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