The Federal Deposit Insurance Corporation said Small Business Bank in Lenexa, Kansas, was closed by the Kansas Office of the State Bank Commissioner and placed into FDIC receivership, with The Farmers State Bank of Oakley, Kansas, agreeing to assume substantially all deposits and purchase certain assets. The transaction keeps depositors whole and provides immediate access to their funds, while the failed bank’s sole branch is set to reopen as a Farmers State Bank branch on July 20, 2026. As of March 31, 2026, Small Business Bank reported USD 73 million in total assets and about USD 69 million in total deposits. Depositors will automatically become customers of Farmers State Bank, and the assumed deposits will remain insured by the FDIC. Checks will continue to be processed, debit card and ATM access remains available over the weekend, and loan customers should continue making payments as usual. The FDIC preliminarily estimates the failure will cost the Deposit Insurance Fund about USD 5.7 million, with that figure expected to change as retained assets are sold.
Federal Deposit Insurance Corporation2026-07-17
Federal Deposit Insurance Corporation arranges transfer of failed Small Business Bank, Farmers State Bank assumes most deposits and certain assets
The Federal Deposit Insurance Corporation was appointed receiver for Small Business Bank after its closure by the Kansas state banking authority and arranged for The Farmers State Bank to assume substantially all deposits and purchase certain assets. Small Business Bank had USD 73 million in assets and about USD 69 million in deposits as of March 31, 2026. The FDIC estimates the failure will cost the Deposit Insurance Fund about USD 5.7 million.