State Banking Superintendent Jeff Plagge (PLAG-ee) says the Sac City bank he declared insolvent on Friday had heavy losses on some of its loans to commercial trucking firms.

Citizens Bank in Sac City reopened Monday as a branch of Iowa Trust and Savings Bank of Emmetsburg. An August court order identified some Citizens Bank loans to the trucking industry as higher risk than the bank had previously disclosed and Plagge says that sped up the already scheduled examination of the bank’s portfolio.

Plagge says they’re not seeing similar issues at other Iowa banks.

Trucking firms continue to face a shortage of drivers and supply chain issues, as well as high operating costs. Plagge, who was a commercial banker for 42 years, says there’s no reason to be concerned about the viability of Iowa banks in general.

Plagge has been state banking superintendent since September of 2019. Citizens Bank in Sac City was founded in 1929. Iowa Trust and Savings Bank in Emmetsburg acquired the bank’s nearly 59 MILLION dollars in deposits as well as all available loans.