US regulators suddenly closed a bank in Kansas for the fourth bank failure in 2026.
Federal Deposit Insurance Corporation (FDIC) he says The Kansas Office of the State Bank Commissioner has closed the Small Business Bank.
The FDIC has been appointed receiver and has entered into a purchase and consideration agreement with The Farmers State Bank of Oakley, Kansas, which will take all deposits and purchase other assets.
“The only Small Business Bank branch will reopen as a Farmers State Bank branch during normal business hours on Monday, July 20, 2026.
Small Business Bank depositors will be Farmers State Bank depositors. Deposits considered by Farmers State Bank will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship.
The FDIC did not explain why the bank failed.
Small Business Bank is based in Lenexa, with approximately $73 million in cash and approximately $69 million in deposits as of March 31, 2026.
Preliminary estimates show the failure will cost the Deposit Insurance Fund (DIF) about $5.7 million. The rate may change over time as the inventory is sold.
The other three banks that failed this year are Metropolitan Capital Bank & Trust in Illinois, Community Bank and Trust in West Georgia and Kentland Federal Savings and Loan Association in Indiana.
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