Dream First Bank Buys Failed Heartland Tri-State Bank Deposits

WICHITA, KANSAS – In a stunning move to shore up financial stability in Kansas, the Federal Deposit Insurance Corporation (FDIC) has announced that Dream First Bank, National Association of Syracuse, Kansas, will assume all deposits of the shuttered Heartland Tri-State Bank of Elkhart, Kansas.

The FDIC stepped in as receiver for Heartland Tri-State Bank after it was closed by the Kansas Office of the State Bank Commissioner. The agreement with Dream First Bank ensures that depositors won’t lose a penny, and the four branches of Heartland Tri-State Bank will reopen on Monday, July 31, as branches of Dream First Bank.

According to the FDIC, Heartland Tri-State Bank held approximately $139 million in total assets and $130 million in total deposits as of March 31, 2023. Dream First Bank has agreed to purchase nearly all of these assets, a move that is expected to minimize disruptions for customers and loan holders alike.

The FDIC and Dream First Bank have also entered into a commercial shared-loss agreement on the loans purchased from Heartland Tri-State Bank. This agreement is designed to maximize recoveries on the assets by keeping them in private hands, thereby minimizing the financial impact on both depositors and loan customers.

Customers of Heartland Tri-State Bank are advised to continue using their existing accounts until they receive notice from Dream First Bank regarding system changes at its branch offices. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $54.2 million, highlighting the importance of strong oversight and intervention to protect consumers in times of banking crisis.

For any questions or concerns regarding this transaction, customers can contact the FDIC toll-free at 1-866-431-1725, which will be operational during extended hours over the weekend and Monday. More information is available on the FDIC’s website.