Hunton Andrews Kurth LLP Represented Dream First Bank in Assumption of Failed Heartland Tri-State Bank’s Deposits

The Kansas Office of the State Bank Commissioner closed Heartland Tri-State Bank of Elkhart, Kansas on Friday, July 28, 2023. The Federal Deposit Insurance Corporation (FDIC) was named receiver of Heartland Tri-State Bank. Hunton Andrews Kurth LLP represented Dream First Bank, National Association, of Syracuse, Kansas in the successful bidding process with the FDIC to assume the deposit and assets of Heartland Tri-State Bank.

Heartland Tri-State Bank’s four branches reopened on Monday, July 31 as branches of Dream First Bank. Depositors of Heartland Tri-State Bank automatically become depositors of Dream First Bank. As for the loans, the FDIC and Dream First Bank, National Association entered into a commercial shared-loss agreement on the loans it purchased of the former Heartland Tri-State Bank, which is projected to maximize recoveries on the assets and minimize disruptions for loan customers.

Dream First Bank, National Association’s acquisition was the least costly resolution for the Deposit Insurance Fund compared to other alternatives.

The Hunton Andrews Kurth team was led by partner Peter Weinstock and included partner Brian Marek and associates Marysia Laskowski and Alex Noetzel.