WASHINGTON –To protect Heartland Tri-State Bank depositors, Dream First Bank entered into an agreement with the FDIC to purchase and assume all deposits of Heartland Tri-State Bank. Heartland Tri-State Bank employees and customers are being welcomed to Dream First Bank during the transition this week.
Heartland Tri-State Bank of Elkhart, Kansas, was closed Friday by the Kansas Office of the State Bank Commissioner, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver, according to a media release from the FDIC.
Heartland Tri-State has four branches including a location at 116 South Lincoln in Arlington; 601 Morton in Elkhart; 114 North Main in Attica and 212 Washington in Rolla.
The four branches will reopen as branches of Dream First Bank, National Association July 31, under normal business hours.
Now a part of Dream First Bank, each of the former Heartland Tri-State Bank branches will continue to provide personal and business banking services to the community.
Dream First has locations in Syracuse, Johnson, Ulysses, Hugoton and two in Garden City.
“At Dream First bank, we understand this is unexpected news for Heartland Tri-State Bank customers. Most importantly, I want to confirm that the Heartland Tri-State Bank employee jobs, deposits and banking relationships are not affected by Friday's news,” said Chris Floyd, President and CEO of Dream First Bank. “Dream First staff will continue to provide exceptional customer service and be available to answer questions that employees and customers may have.”
Depositors of Heartland Tri-State Bank have uninterrupted access to their money by writing checks or using existing ATM or debit cards. Checks drawn on the bank will continue to be processed. Depositors of Heartland Tri-State Bank will become depositors of Dream First Bank, so customers do not need to change their banking relationship to retain their deposit insurance coverage. The four branches of Heartland Tri-State Bank located in Elkhart, Rolla, Arlington and Attica, Kansas will reopen as branches of Dream First Bank, National Association, on Monday, July 31, under normal business hours.
The failure to Heartland Tri-State is the fifth U.S. bank failure of 2023, following the collapse of First Republic Bank, Signature Bank, Silicon Valley Bank and Silvergate Bank. There were no bank failures the past two years.
Click here for additional details from the FDIC
--------------------
WASHINGTON – Heartland Tri-State Bank of Elkhart, Kansas, was closed Friday by the Kansas Office of the State Bank Commissioner, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver, according to a media release from the FDIC.
To protect depositors, the FDIC entered into a purchase and assumption agreement with Dream First Bank, National Association, of Syracuse, Kansas, to assume all of the deposits of Heartland Tri-State Bank.
That bank has four branches including a location at 116 South Lincoln in Arlington; 601 Morton in Elkhart; 114 North Main in Attica and 212 Washington in Rolla.
The four branches will reopen as branches of Dream First Bank, National Association, on Monday, July 31, under normal business hours.
Over the weekend, depositors of Heartland Tri-State Bank can access their money 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.
Depositors of Heartland Tri-State Bank will become depositors of Dream First Bank, National Association, so customers do not need to change their banking relationship in order to retain their deposit insurance coverage. Customers of Heartland Tri-State Bank should continue to use their existing branch until they receive notice from Dream First Bank, National Association, that it has completed systems changes to allow its branch offices to process their accounts as well.
As of March 31, 2023, Heartland Tri-State Bank had approximately $139 million in total assets and $130 million in total deposits. In addition to assuming all of the deposits, Dream First Bank, National Association, agreed to purchase essentially all of the failed bank’s assets.
The FDIC and Dream First Bank, National Association, are also entering into a commercial shared-loss agreement on the loans it purchased of the former Heartland Tri-State Bank. The FDIC as receiver and Dream First Bank, National Association, will share in the losses and potential recoveries on the loans covered by the shared-loss agreement, which is projected to maximize recoveries on the assets by keeping them in the private sector. The agreement is also expected to minimize disruptions for loan customers.
Customers with questions about the transaction should call the FDIC toll-free at 1-866-431-1725. The phone number will be operational this evening until 9:00 p.m. Central Time (CT); on Saturday from 9:00 a.m. to 6:00 p.m. CT; on Sunday from noon to 6:00 p.m. CT; on Monday from 8:00 a.m. to 8:00 p.m. CT; and thereafter from 9:00 a.m. to 5:00 p.m. CT. Interested parties also can visit the FDIC’s website.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $54.2 million. Compared to other alternatives, Dream First Bank, National Association’s, acquisition was the least costly resolution for the DIF, an insurance fund created by Congress in 1933 and managed by the FDIC to protect the deposits at the nation’s banks.
This is the fifth U.S. bank failure of 2023, following the collapse of First Republic Bank, Signature Bank, Silicon Valley Bank and Silvergate Bank. There were no bank failures the past two years.