Another month, another bank collapse. On Friday, Heartland Tri-State Bank was closed by the Kansas Office of the State Bank Commissioner.
The Federal Deposit Insurance Corporation was named the receiver and Dream First Bank of Syracuse, Kansas assumed all deposit accounts and substantially all the assets.
Heartland Tri-State Bank is the first community bank in the nation to fail in 2023. It is a small bank, with some $139 million in assets in the first quarter. The deposits are now assets of Dream First Bank.
Elkhart Financial Corporation of Elkhart, Kansas, owned all shares of Heartland Tri-State Bank stock before FDIC took the bank. The holding company was not included in the closing of the bank or the resulting receivership.
The Kansas bank failure adds to other major financial institutions this year that have failed, and at least one bank that voluntarily liquidated when caught up in the cryptocurrency collapse related to the FTX exchange bankruptcy.
First Republic, Silicon Valley Bank, and Signature Bank collapsed in the first few months of 2023. First Republic was acquired by JPMorgan in May after efforts to rescue the bank were unsuccessful.
Silvergate Capital folded operations at its bank, which catered to crypto traders.
PacWest, a sixth bank, late week merged with Banc of California, in what appears to be an attempt to avoid collapse. For years PacWest had been on a buying spree, swallowing up smaller financial institutions. At the time it was folded into Banc of California, it was said to have over $41 billion in assets
No banks failed last year, according to FDIC, but in 2019 and 2020, four banks failed in each of those years. This year, the number now stands at six, including mergers under duress and voluntary closures.
ah yes, the good old bydumb economics!
you dimlibbys are a strange lot, as stupid as they come!
The economy is much more fragile than people care to admit.
One good push…
Don’t worry MA, it’s coming and I’m ready. Too many negatives going on right now to sustain this stock market that we have.
pResident Briben says the economy is strong as hell. Well… hell might be a good term, and I guess when you are an 80+ year old pervert, strong is relative.
Reality is such an unfortunate circumstance. Make stupid choices. get stupid prizes.
All part of the plan. We’ll soon be down to 2-3 mega banks working under DEI and ESG.
Downing: the headline doesn’t match the story. You imply a causal relationship between bank failure and Bidenomics because you’re anti liberal, not because of any other explanation.
I mean, that’s pretty standard for headlines here. Sensationalize! Maybe report facts…maybe – definitely correlate various facts and sell it as causation that liberals and/or Biden are the root of some problem (and lets face it, they often are…). I think that article on the Air Force having difficulty recruiting and it being entirely the fault of “woke” policies a few weeks ago, is a great example – it didn’t explicit state woke policies were responsible, but it sure did imply that was the causal factor!
But hey, I still enjoy coming here to read articles, helps keep my BS-meter calibrated.
There is nothing, NOTHING “liberal” about the purely statist, radically authoritarian, pro-globalist and anti-freedom political agenda of the China Joe regime and its sycophants such as yourself.
She also failed to mention the the Dow over 35k for the first time ever. There is no journalistic integrity on this site. Click bait and editorializing every bit of information. And of course the daily dose of homophobia.
I went back and read this three times. The only homophobia is in your mind, not the article.
But people see what they want to see…
What does the DOW have to do with the economy?
.
The stock market is speculation, not everyday economic reality. It goes up during times of economic downturn. There is no real connection between the stock market going up, and a good economy. But… you would not understand that because you are too busy looking for homophobia.
You would like to provide a better explanation than that the current administration its a failure and their economic policies are cratering the time value of money?
If so, we’re all ears.
T.B… It may not be the only reason but, the adoption of ESG principles (Environment, Society, Governance) that literally mandates adherence to said woke principles in order to get a loan – instead of getting the best possible return for their members money on-deposit – is a large part of these banks collapsing. Add to that printing too much money, lack of investor confidence, inflation and… you have what you have. People and companies that invested money with these banks expected the highest possible return on their dollar but were left in the lurch that ESG would be used to approve loans which, in many instances, did not exist at the time of their initial deposit. IMHO, this action is deceitful, reckless and should be investigated and shut down.
Yeah…..that’s how blogs work. You do understand what Suzanne is building here right? This is Suzanne’s blog. If you don’t like it, start your own blog. Alternatively you could find out what an hp boat tail tastes like it wouldn’t make any difference to us.
Downing caused the bank failure because she’s anti-liberal?
The explanation is simple. The next two years is going to crush the commercial real estate sector. Commercial loans only run 5-7 years. With interest rates more than doubling for commercial loans, owners of underwater commercial properties are giving the asset back to the bank. Most commercial paper is at small/medium banks who cannot afford to take these assets back at 25-40% of the old value. This is just the beginning. Businesses will not be able to borrow money because prime, (the new “prime”) is now at 8% and businesses will not be able to borrow at this rate. Only Apple, Google and Microsoft and Tesla were able to borrow billions at 1-3%. They will be fine.
All these problems are the result of the higher interest rate that Biden and Biden alone caused. The liberal newspapers have tried to pin it on Putin but it was caused by the rampant inflation caused by Bidenomics. The only reason inflation was so low so long was the USA controlled the oil markets. Biden ended fracking and leases on Federal Property. Oil doubled in price and so did all the prices. Russia and OPEC did not affect the oil price, the US did by supplying less oil.
Great Comment Duncan. Best quick breakdown on what is going on, I have ever read. Any suggestions on where to park my savings.
Interest rates will continue to rise while Biden in Office. Dems keep spending. Our credit rating just went down today. CD’s and IBonds best bet until 2024 election
Does not matter if your anti this or anti that! The political plunder ship is sinking for all of us!!!!!!!
Please tell me you apply the same standard to all news outlets. Do you send comments to the ADN, CNN, MSNBC, etc… saying the same thing?
Can comments on ADN be done anymore? I seem to remember them cancelling comments.
The economic illiteracy rate of progressives is staggering. But they are progressives, so it’s probably to be expected.
Just what the Democrats want! Give them an opportunity to buy everything and be in charge of everything.
Not to toss a blanket on everyone’s joy here but this issue has been brewing for a long time. When Greenspan dropped interest rates every time a bug farted there eventually came a time when you couldn’t go lower and the direction interest rates had been taking would have to change.
The issue pertains to the Biden administration primarily because they’re taking steps that are too large too quickly and killing small business at the same time. When you do that you guarantee catastrophic failure. There are a number of other aspects as well but key among them are the irresponsible and indelicate manner in which the economy is being manhandled.
We’ve been here before when interest rates were much higher. In the teens during parts of the 90’s and an easy ten during the early to mid-90’s. What’s coming is going to hurt and it’ll hurt worse as long as we have a free spending idiot at the helm. Gov’t printing presses have never been so busy and that’s a huge portion of the devaluation process.
This collapse has many fathers.
Virtually no one in DC is immune. Trump included. Some are just worse than others.
Yellow, the trucking company is closing up shop as well.
While there are other factors, the primary reason is because of Bidenomics and his war on conventional energy. When your fuel costs triple, it tends to make running a trucking business a LOT less profitable.
Plus when the supply chain collapsed and the alleged Trans Sec was nowhere to be found and incompetent when he was.
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