‘Huge scam’ in rural Kansas town fells fourth U.S. bank in 2023
Heartland Tri-State Bank of Elkhart 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.” Herndon named the Federal Deposit [...]