Source: Heartland Tri-State Bank
On Friday, Heartland Tri-State Bank became the latest financial institution to falter under current economic policies by the Biden regime, marking the fifth bank closure this year amidst regulatory pressures.
The Kansas Office of the State Bank Commissioner ordered the bank’s closure, with the Federal Deposit Insurance Corporation (FDIC) stepping in as receiver.
In an effort to ‘safeguard’ depositors, FDIC brokered a purchase and assumption agreement with Dream First Bank, National Association, headquartered in Syracuse, Kansas. This agreement ensures that all deposits held by Heartland Tri-State Bank will be assumed by Dream First Bank.
Heartland Tri-State Bank released the following statement:
On Friday, July 28, 2023, Heartland Tri-State Bank, Elkhart, KS was closed by the Kansas Office of the State Bank Commissioner. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.
All deposit accounts have been transferred to Dream First Bank, National Association (N.A.), Syracuse, KS. For more information on Dream First Bank, N.A. visit us at www.dreamfirst.bank.
The FDIC has assembled useful information regarding your relationship with Heartland Tri-State Bank. Besides a checking account, you may have Certificates of Deposit, a business checking account, a Social Security direct deposit, and other relationships with the institution.
Customers of Heartland Tri-State Bank will be able to continue using their accounts as usual. The bank’s four branches will reopen under Dream First Bank, National Association, on Monday, July 31. In the meantime, clients can still access their funds through checks, ATMs, or debit cards, and are advised to continue making loan payments as normal.
The assets of Heartland Tri-State Bank, which as of March 31, 2023, were valued at approximately $139 million, will be largely absorbed by Dream First Bank, National Association. This includes around $130 million in total deposits.
Additionally, a shared-loss agreement will be established between the FDIC and Dream First Bank, National Association, concerning the acquired loans of the now-defunct Heartland Tri-State Bank. The intent behind this agreement is to optimize recoveries on the assets by maintaining them within the private sector, and also to minimize disruptions for loan customers.
“You should continue to make payments, including escrow payments, as usual; the terms of your loan will not change,” the FDIC said.
This latest bank closure, it is projected, will cost the Deposit Insurance Fund (DIF) around $54.2 million. Managed by the FDIC, the DIF is an insurance fund established by Congress in 1933 to protect the nation’s bank deposits. Nonetheless, the acquisition by Dream First Bank, National Association, was deemed the least costly resolution for the DIF when compared with other alternatives.
Heartland Tri-State Bank was initially established on January 2, 1985. On January 31, 2012, the ownership of the bank underwent a significant change. A group of local investors banded together to create a bank holding company, which then acquired Heartland Tri-State Bank.
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Four US banks have fallen so far
Heartland Tri-State Bank’s collapse marks the fifth bank collapse in the United States in 2023. US regulators seized the struggling First Republic Bank (FRB) on May 1, 2023, to stop more unrest in the banking industry. They immediately sold all their deposits and assets to the nation’s largest bank, JPMorgan Chase. Notably, the FRB collapsed despite receiving a $30 billion lifeline from 11 of the biggest banks in the nation in mid-March.
Silvergate Capital Corporation then announced plans to voluntarily liquidate itself on March 8 due to losses sustained due to the failure of cryptocurrency exchange FTX. A well-known lender to technological start-ups and venture capital firms in the San Francisco Bay Area, Silicon Valley Bank, was then shut down by US regulators two days later. On March 12, New York officials closed down the cryptocurrency-focused Signature Bank to quell a growing financial crisis brought on by the Silicon Valley Bank’s closure.
After Washington Mutual, which failed during the 2008 global financial crisis and was bought by JPMorgan, First Republic, Silicon Valley Bank, and Signature Bank are now the second, third, and fourth largest bank failures in US history, respectively. Together, the three recently defunct banks possessed $532 billion in assets, above the $526 billion (adjusted for inflation) held by the 25 defunct banks in 2008.
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