Heartland Tri-State Bank has become the latest bank in the U.S. to fail. The Kansas banking regulator closed the bank and appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver on Friday.
Regulator Shuts Down Heartland Tri-State Bank
A regional bank in the U.S., Heartland Tri-State Bank, was closed by the Kansas Office of the State Bank Commissioner on Friday. The regulator subsequently named the Federal Deposit Insurance Corporation (FDIC) as the receiver. The FDIC announced:
To protect depositors, the FDIC entered into a purchase and assumption agreement with Dream First Bank, National Association, of Syracuse, Kansas, to assume all of the deposits of Heartland Tri-State Bank.
The FDIC explained that Heartland Tri-State Bank had approximately $139 million in total assets and $130 million in total deposits as of March 31. In addition to assuming all of the failed bank deposits, Dream First Bank, National Association, “agreed to purchase essentially all of the failed bank’s assets,” the FDIC detailed.
The regulator added that the four branches of Heartland Tri-State Bank will reopen as branches of Dream First Bank, National Association, on Monday, under normal business hours.
Several banks have failed in the U.S. this year. On March 10, Silicon Valley Bank was closed by the California Department of Financial Protection & Innovation. On March 12, Signature Bank was closed by the New York State Department of Financial Services. On May 1, First Republic Bank was closed by the California Department of Financial Protection and Innovation. Moreover, Silvergate Bank announced voluntary liquidation.
Multiple people have foreseen an increase in regional bank failures as the Federal Reserve persists with its interest rate hikes. This week, the Fed raised interest rates by 25 basis points. Rich Dad Poor Dad author Robert Kiyosaki warned in April that regional banks are being wiped out because of Fed policies. Economist Peter Schiff stated earlier this month that all banks will fail and people will suffer massive losses as the banking crisis unfolds.
Do you think more banks will fail in the U.S. this year? Let us know in the comments section below.