Jamal Al-Farouq In a recent development, Heartland Tri-State Bank, a regional bank in the U.S., was shuttered by the Kansas Office of the State Bank Commissioner. As part of the closure process, the Federal Deposit Insurance Corporation (FDIC) was subsequently appointed as the receiver on Friday.
Regulator Closes Doors of Heartland Tri-State Bank
Following its closure, the FDIC announced measures to safeguard depositors. It entered into a purchase and assumption agreement with Dream First Bank, National Association, based in Syracuse, Kansas. Dream First Bank will assume all deposits of Heartland Tri-State Bank.
The FDIC provided further details, explaining that Heartland Tri-State Bank had about $139 million in total assets and $130 million in total deposits as of the end of March. Beyond taking over all of the failed bank’s deposits, Dream First Bank, National Association, also agreed to buy virtually all of Heartland Tri-State Bank’s assets.
According to the regulator, the four branches of Heartland Tri-State Bank will resume operations as Dream First Bank, National Association branches, maintaining their regular business hours, starting from Monday.
The failure of Heartland Tri-State Bank is one among several bank failures that have occurred in the U.S. this year. On March 10, Silicon Valley Bank was shut down by the California Department of Financial Protection & Innovation, followed by the closure of Signature Bank by the New York State Department of Financial Services on March 12. First Republic Bank was also closed by the California Department of Financial Protection and Innovation on May 1. In addition, Silvergate Bank initiated a voluntary liquidation.
There is a growing anticipation of more regional bank failures as the Federal Reserve continues to increase interest rates. Just this week, the Federal Reserve raised interest rates by 25 basis points. Robert Kiyosaki, author of Rich Dad Poor Dad, issued a warning in April about regional banks facing extinction due to the Federal Reserve’s policies. Similarly, economist Peter Schiff expressed his concern earlier this month that all banks could potentially fail, leading to significant losses as the banking crisis escalates.
What’s your take on this? Do you expect more U.S. banks to fail in the coming year? We look forward to hearing your thoughts in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Bank Failure
What happened to Heartland Tri-State Bank?
The Heartland Tri-State Bank, a regional bank in the U.S., was closed by the Kansas Office of the State Bank Commissioner. Following the closure, the Federal Deposit Insurance Corporation (FDIC) was appointed as the receiver.
Which institution is set to assume the deposits and assets of Heartland Tri-State Bank?
The FDIC entered into a purchase and assumption agreement with Dream First Bank, National Association, based in Syracuse, Kansas. Dream First Bank will assume all of the deposits and purchase essentially all of the assets of Heartland Tri-State Bank.
When and where will the branches of the failed Heartland Tri-State Bank reopen?
The branches of Heartland Tri-State Bank are set to reopen as branches of Dream First Bank, National Association, under regular business hours starting from Monday.
Have there been other bank failures in the U.S. this year?
Yes, there have been several bank failures in the U.S. this year, including Silicon Valley Bank, Signature Bank, and First Republic Bank. In addition, Silvergate Bank announced voluntary liquidation.
Are there predictions of more bank failures in the U.S.?
Some experts have predicted an increase in regional bank failures as the Federal Reserve continues to increase interest rates. Both Robert Kiyosaki, author of Rich Dad Poor Dad, and economist Peter Schiff have warned about possible widespread bank failures due to the Federal Reserve’s policies.
More about Bank Failure
- Federal Deposit Insurance Corporation
- Kansas Office of the State Bank Commissioner
- Dream First Bank, National Association
- Silicon Valley Bank Closure
- Signature Bank Closure
- First Republic Bank Closure
- Silvergate Bank Liquidation
- Federal Reserve Interest Rate Hikes
6 comments
good thing FDIC is there to ensure depositor’s money is safe. But what about the employees, are their jobs safe?
This is just the tip of the iceberg, folks. More banks will likely fail if Fed continues to raise rates. Prepare for the worst.
Wow, another bank bites the dust huh? wonder how many more will fall this year…
I never thought I’d see so many banks failing. Kinda scary, ain’t it?
Interest rate hikes by the Fed, coupled with other financial pressures are clearly taking a toll on regional banks. this is a serious situation.
heartland was my local bank, can’t believe they’re gone. hope dream first will be a better fit…