The Small Business Bank in Kansas was abruptly closed by state regulators, marking the fourth bank failure in the United States this year. The Federal Deposit Insurance Corporation (FDIC) has taken over as receiver and arranged for Farmers State Bank of Oakley, Kansas, to assume most deposits and acquire selected assets.
Small Business Bank, headquartered in Lenexa, held roughly $73 million in assets and about $69 million in deposits as of the end of March 2026. The bank's single branch will reopen under Farmers State Bank's name on Monday, July 20, 2026, during regular hours. Depositors will automatically become customers of Farmers State Bank with continued FDIC insurance coverage, requiring no action to maintain their accounts.
The FDIC has not disclosed the reasons behind the bank's failure. Initial estimates predict a $5.7 million cost to the Deposit Insurance Fund (DIF), though this figure may adjust as remaining assets are liquidated.
This failure follows three earlier 2026 bank closures: Metropolitan Capital Bank & Trust in Illinois, Community Bank and Trust in West Georgia, and Kentland Federal Savings and Loan Association in Indiana.
