Sioux City Bank at Risk of Failing

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By Becky Ogann

Story Created: Aug 25, 2009 at 9:36 AM CST

Story Updated: Aug 25, 2009 at 10:01 AM CST

DES MOINES (AP) - Vantus Bank, based in Sioux City, is at risk of failing because of the recession and rising bad loans.

Federal regulators have told the bank, which has 13 locations in Iowa, that its plan to increase its capital was unacceptable. According to a filing with the U.S. Securities and Exchange Commission, it must be sold or liquidated by Sept. 30.

The bank's problems stem from loans that went bad, including those to Regency Homes, the state's largest home builder that collapsed last year.

The bank's deposits are insured up to $250,000 per depositor by the FDIC.

Vantus Bank was founded in 1923. If it closes, it would be the first Iowa bank since 2000 to fail.

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