‘Huge scam’ in rural Kansas town fells fourth U.S. bank this year

Heartland Tri-State Bank of Elkhart is the smallest U.S. bank to fail in the past year, with the next closest in size being Signature Bank in New York.
Heartland Tri-State Bank of Elkhart, Kansas, on July 28 became the fourth U.S. bank to fail in 2023 and the second Kansas bank to fail in three years.

David Herndon, Kansas banking commissioner, closed the southwest Kansas bank after it became insolvent because it was “apparently the victim of a huge scam,” he said. Herndon said he doesn’t know what the scam was, but he said other banks in the state were not affected.

“Kansas banks are strong and healthy,” he said. “They are well-capitalized, have strong reserves, are profitable and maintain record levels of loan reserves.”