Heartland Tri-State Bank in Kansas has been closed by regulators after it became insolvent, officials announced on Friday night, marking the fifth U.S. bank failure so far this year.
Kansas Bank Commissioner David Herndon determined that the bank, which was based in Elkhart, had become insolvent and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC then sold it to the Dream First Bank.
“Heartland Tri-State Bank became insolvent due to an isolated event,” Herndon’s office said in a statement. “Overall, the Kansas banking industry is unaffected by this event and Kansas banks remain strong.”
Heartland Tri-State Bank, which was founded in 1985, had three additional branches in Attica, Arlington and Rolla. In total, the bank had approximately $139 million in total assets and $130 million in total deposits.
“Depositors of Heartland Tri-State Bank will automatically become depositors of Dream First Bank,” Herndon’s office said. “Over the weekend, customers of Heartland Tri-State Bank can access their funds by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.”
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $54.2 million.
The closure of Heartland Tri-State Bank is the fifth U.S. bank failure of 2023, following the collapse of First Republic Bank, Signature Bank, Silicon Valley Bank and Silvergate Bank earlier this year. There were no bank failures in 2022 and 2021.