Bank closed in southwestern Kansas

State regulators on Friday closed Heartland Tri-State Bank in Elkhart, Kansas, and named the FDIC as receiver. The FDIC entered into an agreement with Dream First Bank in Syracuse, Kansas, to assume all of the failed bank’s $130 million in deposits and to purchase essentially all of the bank’s $139 million in assets. As part of the purchase, the FDIC agreed with Dream First to share losses and potential recoveries on the loans purchased from the failed bank. The failure—the fourth of 2023 and the first community bank to fail this year—is expected to cost the Deposit Insurance Fund $54.2 million.