Wednesday September 22, 2021 3:20 PM
Recently, there have been reports of pending cases involving the Luana Savings Bank and the FDIC and the Federal Home Loan Bank of Des Moines (âFHLBâ). “We were disappointed to read how these issues were explained in media reports, as they do not accurately characterize the nature of these proceedings,” senior bank management explained, when we spoke to the bank about our recent reports. The bank explained, âThe Luana Savings Bank and the FDIC have a disagreement over certain legal banking practices.
Many news outlets have falsely reported that Luana Savings Bank is under a cease and desist order from the FDIC. However, Luana Savings Bank is not subject to a cease and desist order. Luana Savings Bank is operating normally, with no change in its day-to-day operations. Consumer and business deposits and loans are still available, and no customer should notice any change in their experience at any of the Luana Savings Bank offices.
Luana Savings Bank has been a staple in Northeast Iowa for over 100 years. The bank has been a stable and secure source of banking services for consumers and businesses both in northeast Iowa and, more recently, in the Des Moines metro area.
According to Luana Savings Bank, and unbelievably as it may seem, as of Friday, September 10, reporters from the Driftless Journal were the only ones to have contacted Luana Savings Bank to investigate this story.
Contrary to some reports, the FDIC has only started an administrative proceeding in which Luana Savings Bank and the FDIC will address a disagreement over certain legal banking practices. It is important to note that at this time the FDIC has not issued any orders against Luana Savings Bank. Luana Savings Bank reports that it has already worked to respond to many recommendations from the FDIC to further improve the performance of Luana Savings Bank.
The FDIC file also mentioned a pending case involving FHLB and Luana Savings Bank, relating to the purchase and sale of certain loans. The dispute between FHLB and Luana Savings Bank is essentially a contractual dispute between two financial institutions and does not involve allegations of fraud.
The FDIC file also mentioned certain fees that FHLB claimed from the Luana Savings Bank. The FDIC file refers to loans that Luana Savings Bank borrowed from FHLB. Luana Savings Bank is able to borrow funds from FHLB and repay those loans over time. If at any time Luana Savings Bank wishes to repay these loans faster, it can pay additional fees to FHLB.
âNone of these issues impact the security and stability of Luana Savings Bank. While we are disappointed that the FDIC and FHLB have initiated these proceedings, we look forward to the opportunity to resolve these issues through court proceedings. Regardless, Luana Savings Bank is in a strong financial position and continues to be a source of strength for our clients in Northeast Iowa and the Des Moines metro area, âsaid senior management. Bank. The bank added: “Luana Savings Bank will defend itself vigorously in proceedings involving the FDIC and FHLB.”
David Schultz, chairman of Luana Savings Bank, described in a recent newsletter: âThe Luana Savings Bank has provided safe and strong community banking services to the people of Iowa since 1908 and is one of the world’s largest lenders. agricultural and residential properties in Iowa. Luana Savings Bank is a source of strength and financial services for a diverse group of clients in Northeast and Central Iowa. Luana Savings Bank is firmly one of the top 10 banking institutions in Iowa and has now surpassed $ 2 billion in assets. By all significant banking measures, Luana Savings Bank is financially stronger than 99% of all banking institutions in Iowa and has created a superior business banking model.
For more information, please email Luana Savings Bank at [email protected]
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