Another Bank Failure: Kansas Heartland Tri-State Fails, Will Reopen As Dream First
Dream First Bank made a significant move to safeguard the interests of Heartland Tri-State Bank depositors in Kansas by entering into an agreement with the Federal Deposit Insurance Corporation (FDIC) to purchase and assume all deposits of the latter. The acquisition aims to ensure that the customers of Heartland Tri-State Bank experience a seamless transition and continue to receive top-notch banking services.
Chris Floyd, the President and CEO of Dream First Bank, expressed understanding for the surprise that Heartland Tri-State Bank customers may have felt upon hearing the news. He assured them that the takeover would have no negative impact on the jobs of Heartland Tri-State Bank employees or their banking relationships.
“Dream First staff will continue to provide exceptional customer service and be available to answer questions that employees and customers may have,” said Floyd in a statement.
Customers of Heartland Tri-State Bank can continue using their checks, existing ATM, or debit cards, and checks drawn on the bank will continue to be processed as usual. Depositors will automatically become customers of Dream First Bank, with the bank ensuring that they do not need to make any changes to retain their deposit insurance coverage.
The four branches of Heartland Tri-State Bank located in Elkhart, Rolla, Arlington, and Attica, Kansas will reopen on Monday, July 31, under the banner of Dream First Bank, National Association, and will operate during regular business hours.
The news comes after Heartland Tri-State Bank suffered a failure, resulting in the FDIC taking control of the situation. Despite recent unveiling of new banking regulations, the FDIC acknowledged that these measures would not have prevented the bank’s collapse or others in the US this year.
This year has witnessed several notable bank failures, including First Republic, Silicon Valley Bank, and Signature Bank, leading to heightened concerns in the banking industry. In response, lawmakers have been prompted to introduce new legislation aimed at safeguarding customer deposits and stabilizing the overall financial system.
Heartland Tri-State Bank’s collapse marks the first such failure since the massive downturn experienced by First Republic, the nation’s second-largest bank failure ever, back in early May.
The FDIC disclosed that Heartland Tri-State Bank had approximately $139 million in total assets and $130 million in total deposits. As part of the rescue plan, Dream First Bank has committed to purchasing “essentially all” of Heartland Tri-State Bank’s failed assets.
“Dream First Bank has an extraordinary commitment to its customers and our vision of helping people. It meant a great deal to us to be recognized by the Institute for Extraordinary Banking and trusted by the FDIC to step in and help in this situation,” added Floyd.
Information for this briefing was found via CNN and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
