The Kansas Office of the State Bank Commissioner closed Elkhart, Kan.-based Heartland Tri-State Bank on July 28.
State Bank Commissioner David Herndon said Heartland Tri-State Bank was closed after it “became insolvent due to an isolated event. Overall, the Kansas banking industry is unaffected by this event and Kansas banks remain strong.”
The $480 million Syracuse, Kan.-based Dream First Bank, NA, bought the failed southwest Kansas bank, which had approximately $139 million in assets and $130 million in deposits as of March 31.
The FDIC and Dream First entered into a commercial shared-loss agreement on the loans it purchased from the failed bank. The four Heartland Tri-State branches reopened as Dream First Bank locations on July 31.
The FDIC estimated that the cost to the Deposit Insurance Fund will be $54.2 million.