Posted on Aug 14, 2023
‘Huge scam’ in rural Kansas town fells fourth U.S. bank this year
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Heartland Tri-State Bank of Elkhart is the smallest U.S. bank to fail in the past year, with the next closest in size being Signature Bank in New York.
Heartland Tri-State Bank of Elkhart, Kansas, on July 28 became the fourth U.S. bank to fail in 2023 and the second Kansas bank to fail in three years.
David Herndon, Kansas banking commissioner, closed the southwest Kansas bank after it became insolvent because it was “apparently the victim of a huge scam,” he said. Herndon said he doesn’t know what the scam was, but he said other banks in the state were not affected.
“Kansas banks are strong and healthy,” he said. “They are well-capitalized, have strong reserves, are profitable and maintain record levels of loan reserves.”
Heartland Tri-State Bank of Elkhart, Kansas, on July 28 became the fourth U.S. bank to fail in 2023 and the second Kansas bank to fail in three years.
David Herndon, Kansas banking commissioner, closed the southwest Kansas bank after it became insolvent because it was “apparently the victim of a huge scam,” he said. Herndon said he doesn’t know what the scam was, but he said other banks in the state were not affected.
“Kansas banks are strong and healthy,” he said. “They are well-capitalized, have strong reserves, are profitable and maintain record levels of loan reserves.”
‘Huge scam’ in rural Kansas town fells fourth U.S. bank this year
Posted from kcur.orgPosted in these groups: 
BankingState of Kansas
BankingState of Kansas
Posted 10 mo ago
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PO1 William "Chip" Nagel
..."It was a terribly unfortunate event, but the system did work, and people had no interruption in accessing their accounts,” he said. “Sometimes businesses fail. This time it was a bank. But the depositors were protected.”
As of March 31, Heartland Tri-State Bank had $139 million in total assets and $130 million in total deposits, according to a FDIC news release.
Dream First Bank assumed all deposits and agreed to purchase “essentially all of the failed bank’s assets,” the FDIC said. The regulator and Dream First Bank entered a shared-loss agreement on the loans purchased from Heartland Tri-State Bank to share the losses..."...
..."It was a terribly unfortunate event, but the system did work, and people had no interruption in accessing their accounts,” he said. “Sometimes businesses fail. This time it was a bank. But the depositors were protected.”
As of March 31, Heartland Tri-State Bank had $139 million in total assets and $130 million in total deposits, according to a FDIC news release.
Dream First Bank assumed all deposits and agreed to purchase “essentially all of the failed bank’s assets,” the FDIC said. The regulator and Dream First Bank entered a shared-loss agreement on the loans purchased from Heartland Tri-State Bank to share the losses..."...
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PO1 William "Chip" Nagel good day Brother William, always informational and of the most interesting. Thanks for sharing, have a blessed day!
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