Recently, there have been reports about pending matters involving Luana Savings Bank and the FDIC and Federal Home Loan Bank of Des Moines (“FHLB”). “We were disappointed to read how these matters were explained in media reports, because they do not accurately characterize the nature of these proceedings,” explained senior bank management, when we spoke to the bank about our recent reports. The bank explained, “Luana Savings Bank and the FDIC have a disagreement over certain legal banking practices.” 
Many news outlets have incorrectly reported that Luana Savings Bank is under a cease-and-desist order from the FDIC. However, Luana Savings Bank is not under a cease-and-desist order.  Luana Savings Bank is operating normally, with no changes to its day-to-day operations.  Consumer and business customer deposits and loans are all still available, and no customer should notice any change in their experiences at any of Luana Savings Bank’s offices. 
Luana Savings Bank has been a fixture of Northeast Iowa for over 100 years. The bank has been a stable and secure source of banking services to consumers and businesses both in Northeast Iowa, and more recently, in the Des Moines Metro area. 
According to Luana Savings Bank, and as unbelievable as it may seem, as of Friday, Sept. 10, reporters from the Driftless Journal were the only reporters to reach out to Luana Savings Bank to investigate this story.
Contrary to some reports, the FDIC has only commenced an administrative proceeding where Luana Savings Bank and the FDIC will address a disagreement over certain legal banking practices. Importantly, at this time the FDIC has not entered any order against Luana Savings Bank. Luana Savings Bank reports that it has already worked to address many of the FDIC’s recommendations to further improve Luana Savings Bank’s performance. 
Also mentioned in the FDIC filing was a pending matter 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 contract dispute between two financial institutions and does not involve claims of fraud. 
The FDIC filing also mentioned certain fees FHLB claimed Luana Savings Bank owed. The FDIC filing refers to loans 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 desires to pay these loans back faster, they can pay FHLB an additional fee. 
“None of these matters impact the security and stability of Luana Savings Bank. While we are disappointed that the FDIC and FHLB have instituted these proceedings, we look forward to the opportunity to resolve these matters through the legal process. Regardless, Luana Savings Bank is in a strong financial position and remains a source of strength for our customers in Northeast Iowa and the Des Moines metro area,” reported senior bank management. The bank added, “Luana Savings Bank will vigorously defend itself in the proceedings involving the FDIC and FHLB.”
David Schultz, Luana Savings Bank President, described in a recent newsletter, “Luana Savings Bank has provided safe and sound community banking to Iowans since 1908, and is one of the largest agricultural and residential lenders in Iowa. Luana Savings Bank is a source of strength and financial services to a diverse group of customers in both Northeast and Central Iowa. Luana Savings Bank is firmly a Top 10 Banking Institution in Iowa and has now surpassed $2 billion in assets. By all meaningful 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 info@luanasavingsbank.com.