Under David's rule they enter a prosperous period. Borders, taxes and infrastructure are also established along with prosperity. Under David's rule he provides resources for a national temple in which to worship. (Jerusalem) His son Solomon builds this temple, however this also creates a division in the Kingdom, creates the northern region of Israel and the southern region of Judah. It is at this time that God helps the prophets point out the principles of the covenant and the consequences if they are ignored. Israel and Judah mistake their financial prosperity for a covenant blessing, which leads the Israeli people to refuse to heed the prophet's warnings about covenant responsibilities. Here is a great example of how in modern times we can have wealth but not have a relationship with God. The prophets warn them that the nation will go into exile if they do not repent and return to their covenant obligations, which provides them with both a blessing and a protection as a nation. They do not repent and therefore Israel is divided into two regions. The northern region of Israel goes into exile when Babylon invades. The southern region of Judah then makes treaties with neighboring nations, which ultimately results in their dispersion to other peoples. God allows a certain restoration, which helps them maintain their identity. But they are not returned to their old nationality
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