FDIC Takes Over Troubled Kansas Bank

Heartland Tri-State Bank of Elkhart, Kansas, failed on Friday, with the Federal Deposit Insurance Corp. (FDIC) taking control, Ramishah Maruf reported for CNN.

Photo Insert: Heartland Tri-State Bank is the first bank to fall since First Republic, the nation’s second-largest bank failure ever, in early May.

The FDIC agreed to assume all the deposits of Heartland Tri-State Bank to protect customers, entering a purchase and assumption agreement with Dream First Bank of Syracuse, Kansas.

That means the four branches of Heartland Tri-State Bank will reopen as branches of Dream First Bank on Monday.

Heartland had $139 million in total assets and $130 million in total deposits, FDIC said. Dream First Bank also agreed to buy “essentially all” of Heartland Tri-State’s failed assets.

The recent closures of First Republic, Silicon Valley Bank (SVB) and Signature Bank this year have shaken up the banking industry, prompting lawmakers to introduce new legislation to protect customer deposits and stabilize the financial system.

Heartland Tri-State Bank is the first bank to fall since First Republic, the nation’s second-largest bank failure ever, in early May.

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