Is Intrust Bank In Trouble?

Is Intrust Bank In Trouble?



Many are asking this question today! Is Intrust Bank In Trouble? What is happening? Depositors everywhere in America find themselves worrying about the safety of their bank!

Moody’s investor service just added Intrust to their list of troubled banks! Not good!

Let’s take a look at the broader industry!

Below we have a chart showing unrealized depreciation on Hold to Maturity Securities (HTM) for top 100 banks versus equity. 

These unrealized losses NOT reflected in profits or a deduct to equity via Other Comprehensive Income (OCI) – only in the footnotes! Moreover, we don’t find these losses reflected in stress tests or measures of capital adequacy. 

Furthermore a 25 bp (1/4 of 1 percent) increase in rates for a 10-year security causes approximately 2 points in losses (100 par to 98 to reflect yield discount). 

“They should be able to count on us after all these many years, to be honest with them and tell them the truth. And continue to tell them that we’re a very well-capitalized strong bank that is very interested in their well-being and the well-being of their money. We’ve had a few people come in and ask questions. But it’s been a very small number,” said Charlie Chandler, Chairman and CEO of Intrust Bank.

Intrust Bank on ‘downgrade watch’ by Moody’s, CEO says customers shouldn’t worry – KAKE

Moreover, as well know, if we keep less than $250,000 in one account, we have the backing of the FDIC! See for details: FDIC insurance

Lately all we can read about these days are banks failing everywhere! Are we in a financial crisis? Now some worry Will Bank of America Collapse? And many others worry whether or not there is a Hawaii Bank Run? And of course, many others worry about the more local establishments. Will First Republic Bank Fail ?

Intrust Bank Arena at night (2009)
Intrust Bank Arena at night (2009)

Intrust Bank is a financial institution based in Wichita, Kansas, that provides a range of banking and financial services to individuals, businesses, and organizations. Here’s a brief overview of the bank’s history:

Founded in 1876 as The Farmers and Merchants Bank of Wichita, thus over the years, it went through several name changes and mergers. In 1976, the bank merged with Wichita National Bank and Trust Company. And the new entity became named First National Bank of Wichita. In 1987, the bank renamed itself Intrust Bank.

Throughout the 1990s and early 2000s, Intrust Bank continued to expand its operations and grow its customer base through a series of acquisitions and mergers.

A Wichita Thunder game at Intrust Bank Arena (2010)
Wichita Thunder game at Intrust Bank Arena (2010)

Furthermore, in 1992, the bank acquired Central Bank and Trust. In addition, in 1995, it acquired a number of branches from Boatmen’s Bank. Additionally, in 2001, the bank acquired the assets of Kansas-based Union State Bank, and in 2006, it acquired RelianzBank, a bank based in Topeka, Kansas.

Furthermore, in recent years, Intrust Bank has continued to grow and expand. Moreover, both through acquisitions and by developing new products and services. In 2013, the bank acquired Millennium Bank, a bank based in Olathe, Kansas. And in 2016, lastly, it acquired First Bank of Newton, a bank based in Newton, Kansas. In conclusion, today, Intrust Bank is one of the largest banks in Kansas, with more than 40 branches throughout the state and assets totaling over $5 billion.

Is Intrust Bank In Trouble?