Small Business Bank in Kansas closed by regulators
Kansas regulators today closed the Small Business Bank in Lenexa, Kansas, and appointed FDIC receiver. Farmers State Bank of Oakley, Kansas, has agreed to assume nearly 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. The only Small Business Bank branch will reopen as a Farmers State Bank branch during regular business hours Monday.
The FDIC preliminarily estimates that the failure will cost the Deposit Insurance Fund approximately $5.7 million. The valuation is expected to change over time as retained assets are sold.
