Kansas regulators today closed Small Business Bank in Lenexa, Kansas, and appointed the FDIC as receiver. The Farmers State Bank of Oakley, Kansas, agreed to assume substantially all deposits and purchase certain assets.
As of March 31, Small Business Bank reported total assets of $73 million and total deposits of approximately $69 million. Small Business Bank’s sole branch will reopen as a branch of Farmers State Bank during its normal business hours on Monday.
The FDIC preliminarily estimates that the failure will cost the Deposit Insurance Fund approximately $5.7 million. The estimate is expected to change over time as retained assets are sold.
