The Federal Deposit Insurance Corporation announced Friday that Heartland Tri-State Bank of Elkhart, Kansas, has failed.
According to an FDIC news release on its website, the Kansas Office of the State Bank Commissioner seized the bank, which named the FDIC as receiver.
The FDIC then worked with Dream First Bank, National Association, of Syracuse, Kansas, to assume all of the deposits that were at Heartland Tri-State Bank.
The FDIC announced that all deposits, regardless of amount, were transferred from Heartland bank to Dream First.
Earlier this year, First Republic, Silicon Valley Bank, and Signature Bank failed, according to the FDIC. A fifth bank – Silvergate – voluntarily liquidated after the cryptocurrency market faltered earlier in the year.
The collapse of another bank came as President Joe Biden was touting his performance in dealing with inflation, according to the New York Post.
“Earlier this week, the Washington Post suggested Republicans may have to find something else to criticize me for now that inflation is coming down,” Biden said.
“Maybe they’ll decide to impeach me because it’s coming down,” he said, later adding, “I’d love that one.”
As Biden was taking a victory lap, gas prices were once again in the midst of rising.
According to AAA, the national average for a gallon of unleaded gasoline rose 13 cents in the past week.
“Gas demand, meaning people fueling up, remains tepid. It’s lower now than at this time last year and in 2021,” Andrew Gross, a representative of AAA, said.
“But while the heat may be keeping some folks home, it also suppresses refinery production, according to experts. Constrained supplies and a higher cost of oil are tipping the balance toward rising pump prices for now,” he said.
According to AAA, the highest average cost of a gallon of gas was $4.93 per gallon in California.
The FDIC said in its release that the federal Deposit Insurance Fund (DIF) will take a $54.2 million hit from the deal that saw Dream First acquire Heartland, but said the plan it approved was the lowest-cost option for the fund.
The FDIC announcement said that on Monday, Heartland Tri-State Bank’s four branches will open for business as usual and that over the weekend, Heartland customers can access their deposits through ATMs or debit cards.
As of March 31, Heartland Tri-State Bank had approximately $139 million in total assets and $130 million in total deposits.