The Federal Deposit Insurance Corporation deemed Heartland Tri-State Bank in Elkhart, Kansas, to be insolvent on Friday.
The confiscated bank is now under the supervision of the Kansas Office of the State Bank Commissioner, which has appointed the FDIC as receiver.
To take over all the savings held at Heartland Tri-State Bank, the FDIC worked with Dream First Bank, National Association in Syracuse, Kansas.
All deposits from Heartland bank to Dream First were successfully transferred by the FDIC, guaranteeing the safety of all account holders’ money.
According to the FDIC, numerous banks failed in the previous year, including First Republic, Silicon Valley Bank, and Signature Bank. Additionally, in response to the troubled cryptocurrency market, Silvergate Bank decided to liquidate.
The New York Post said that President Joe Biden’s claims of successfully controlling inflation were overshadowed by the news of yet another bank failure.
“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 celebrated his triumph, gas prices kept rising.
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According to AAA, the national average price of a gallon of unleaded fuel climbed by 13 cents in just one 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 cost of a gallon of gas was $4.93 on average in California.
According to the FDIC’s announcement, the purchase of Heartland by Dream First will result in a loss to the federal Deposit Insurance Fund (DIF) of $54.2 million. The FDIC stressed that it authorized the plan because it provided the fund with the most cost-effective alternative.
According to a statement from the FDIC, the branches of Heartland Tri-State Bank will be open on Monday. Customers can conveniently retrieve their deposits over the weekend using ATMs or debit cards in the interim.
As of March 31, Heartland Tri-State Bank had amazing $130 million in total deposits and formidable $139 million in total assets.
