We don’t take the weekends off.

This Friday’s episode of “Bury the Bombshell” features the collapse of another bank. Heartland Tri-State Bank in Kansas has officially gone under and is being gobbled up in a deal brokered by the FDIC.

According to their press release:

Heartland Tri-State Bank of Elkhart, Kansas, was closed today by the Kansas Office of the State Bank Commissioner, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. 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 four branches of Heartland Tri-State Bank will reopen as branches of Dream First Bank, National Association, on Monday, July 31, under normal business hours. This evening and over the weekend, depositors of Heartland Tri-State Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

Depositors of Heartland Tri-State Bank will become depositors of Dream First Bank, National Association, so customers do not need to change their banking relationship in order to retain their deposit insurance coverage. Customers of Heartland Tri-State Bank should continue to use their existing branch until they receive notice from Dream First Bank, National Association, that it has completed systems changes to allow its branch offices to process their accounts as well.

As of March 31, 2023, Heartland Tri-State Bank had approximately $139 million in total assets and $130 million in total deposits. In addition to assuming all of the deposits, Dream First Bank, National Association, agreed to purchase essentially all of the failed bank’s assets.

The FDIC and Dream First Bank, National Association, are also entering into a commercial shared-loss agreement on the loans it purchased of the former Heartland Tri-State Bank. The FDIC as receiver and Dream First Bank, National Association, will share in the losses and potential recoveries on the loans covered by the shared-loss agreement, which is projected to maximize recoveries on the assets by keeping them in the private sector. The agreement is also expected to minimize disruptions for loan customers.

Customers with questions about the transaction should call the FDIC toll-free at 1-866-431-1725. The phone number will be operational this evening until 9:00 p.m. Central Time (CT); on Saturday from 9:00 a.m. to 6:00 p.m. CT; on Sunday from noon to 6:00 p.m. CT; on Monday from 8:00 a.m. to 8:00 p.m. CT; and thereafter from 9:00 a.m. to 5:00 p.m. CT. Interested parties also can visit the FDIC’s website.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $54.2 million. Compared to other alternatives, Dream First Bank, National Association’s, acquisition was the least costly resolution for the DIF, an insurance fund created by Congress in 1933 and managed by the FDIC to protect the deposits at the nation’s banks.

Alarm Bells

The alarming part about this news is NOT that another bank has collapsed. As we’ve said since the banking system collapse started earlier this year, there will continue to be a sprinkling of small banks collapsing and being gobbled up by bigger banks until it turns into a full-blown system collapse, government bailout, and more importantly the dreaded “bank bail-in” through which banks can hold YOUR money.

The real alarm here is that the collapse was kept under wraps until the solution was ready to present. It’s as if the FDIC is mobilized to handle these situations so rapidly, the failing banks are sold before anyone even knows they’re failing.

That does not bode well for the system as a whole because it means they know more collapses are coming and they’re prepared to rapidly patch the holes until all of a sudden they cannot. This is probably a good time to link to our sponsored article, “3 Reasons Why Plain Old Gold and Silver Rounds and Bars Are the Best Protection If the American Economy Collapses.”

Heartland Tri-State Bank will not be the last to fall. It behooves every American to start solidifying their personal financial infrastructure outside of the banking system.