Dream First Bank Nabs Heartland Tri-State Bank Deposits in Elkhart, Kansas

Washington – Heartland Tri-State Bank in Elkhart, Kansas, faced the ax today as the Kansas Office of the State Bank Commissioner stepped in. The Federal Deposit Insurance Corporation (FDIC) was named receiver to safeguard depositors. In a move to keep the cash flowing, the FDIC inked a deal with Dream First Bank, National Association, of Syracuse, Kansas, to assume all deposits from Heartland Tri-State Bank.

Four branches of Heartland Tri-State Bank will reopen under the Dream First Bank banner on Monday, July 31, at regular business hours. Depositors can access their funds today and over the weekend via checks or ATM/debit cards. Checks written against Heartland Tri-State Bank will continue to be processed. Borrowers with loans from the bank should keep up with payments as usual.

Heartland Tri-State Bank depositors will become depositors of Dream First Bank, National Association, meaning no change in banking relationship is needed for deposit insurance coverage to stay intact. Customers are advised to continue using their current branch until notified by Dream First Bank that system changes have been made to process accounts at all branches.

As of March 31, 2023, Heartland Tri-State Bank held approximately $139 million in total assets and $130 million in total deposits. In addition to assuming all deposits, Dream First Bank, National Association, agreed to purchase virtually all the failed bank’s assets. The FDIC and Dream First Bank are also hammering out a commercial agreement to share losses on the acquired loans from Heartland Tri-State Bank.

Customers with questions about this transaction should call the FDIC’s toll-free number at 1-866-431-1725, available today until 9:00 p.m. Central time; Saturday from 9:00 a.m. to 6:00 p.m. Central time; Sunday from noon until 6:00 p.m. Central time; and Monday from 8:00 a.m. to 8:00 p.m. Central time. After these dates, the service hours will be from 9:00 a.m. to 5:00 p.m. Central time. Interested parties can also visit the FDIC’s website.

The FDIC estimates the cost to the Deposit Insurance Fund (DIF) will be $54.2 million. The acquisition of Dream First Bank, National Association, was the least costly option for the DIF, a fund created by Congress in 1933 and managed by the FDIC to protect deposits in national banks.