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Another Bank Has Fallen

As President Joe Biden takes a victory lap on inflation, the FDIC announced the failure of another bank, Heartland Tri-State Bank of Elkhart, Kansas.

The FDIC said in a news release that the state Office of the State Bank Commissioner seized the bank and named the FDIC as the receiver. Dream First Bank, National Association, of Syracuse, Kansas, then assumed all of Heartland’s deposits.

The FDIC said that all deposits, regardless of amount, were transferred from Heartland Bank to Dream First.

The FDIC also said that it worked out a deal with Dream First that will lead to a $54.2 million hit to the Federal Deposit Insurance Fund (DIF). However, the FDIC said that the plan it approved was the lowest-cost option for the fund.

Meanwhile, on the inflation front, gas prices are once again on the rise. According to AAA, the national average for a gallon of unleaded gas rose 13 cents in the past week. Andrew Gross, representative of AAA, said “it’s lower now than at this time last year and in 2021.” But he said with refinery production suppressed by the heat, “constrained supplies and a higher cost of oil are tipping the balance toward rising pump prices.”

The highest average price for a gallon of gas was $4.93 per gallon in California.

The FDIC said that Heartland Tri-State Bank had approximately $139 million in total assets and $130 million in total deposits as of March 31. And the FDIC 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.

So while President Biden takes a victory lap over inflation, another bank failure serves as a reminder that economic conditions can change quickly. However, it appears that deposit holders of Heartland Tri-State Bank have been fairly well-protected and can still access their deposits.

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