DES MOINES, Iowa (KCAU) — A northwest Iowa bank has closed after suffering heavy losses on loans not previously identified, according to Iowa banking officials. The Citizens Bank, Sac City was closed Friday by the Iowa Division of Banking (IDOB), the organization said in a release. As part of the closure by IDOB Superintendent Jeff Plagge, the bank was placed into the receivership of the Federal Deposit Insurance Corporation (FDIC).

The release states that bank examiners “identified significant loan losses that had not previously been identified by the bank” while conducting an examination of the bank. Officials said Citizens Bank had a “concentration of out-of-territory and out-of-state loans to one industry” and then suffered heavy losses from some of those loans. The bank has since been declared insolvent.

All deposit accounts have been purchased and transferred to Iowa Trust & Savings Bank, Emmetsburg. It also purchased all available loans. On Monday, Citizens Bank’s main office and drive-up facility will reopen as a branch of Iowa Trust & Savings Bank. Citizens Bank was established in 1929. The bank reported $65,558,000 in total assets and $58,930,000 in total deposits as of its third-quarter call report.

The FDIC established a toll-free number for customers of Citizens Bank for any questions and concerns. The number is 866-314-1744 and will be in operation Friday until 9 p.m., Saturday from 9 a.m. to 6 p.m., Sunday from noon to 6 p.m., Monday from 8 a.m. to 8 p.m., and thereafter from 9 a.m. to 5 p.m. The FDIC also has more information on its website. The FDIC insures qualified deposits to $250,000.