Kansas State Bank Commissioner, David Herndon, expressed apparent relief as he disclosed the closure of Heartland Tri-State Bank due to a scam they fell victim to.
“We declared the bank insolvent because of a scam that they fell victim to. I can’t speak to the particulars of that. Investigations are ongoing. But it had nothing to do with interest rate increases. Nothing to do with balance sheet asset quality. Nothing to do with the Fed,” Herndon said.
Heartland Tri-State Bank was a small institution, holding just $139 million in assets. Following its closure, the bank was acquired by Dream First Bank, which has $511 million in assets and is based in Syracuse, Kansas (formerly known as First National Bank of Syracuse).