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WASHINGTON — Small Business Bank in Lenexa, Kansas, was closed today by the Kansas Office of the State Bank Commissioner, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC entered into an agreement with The Farmers State Bank of Oakley, Kansas, to assume substantially all deposits and purchase certain assets of Small Business Bank.
As of March 31, 2026, 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, July 20, 2026. Depositors of Small Business Bank will automatically become depositors of Farmers State Bank. The deposits assumed by Farmers State Bank will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship.
Customers of Small Business Bank will have immediate access to their deposits. Over the weekend, they can access their funds by writing checks or using ATM or debit cards. Checks drawn on Small Business Bank will continue to be processed, and loan customers of Small Business Bank should continue to make payments as usual.
Customers with questions about this transaction may visit the FDIC’s website or contact the FDIC toll-free at 1-866-314-1744. This phone number will be operational this evening until 8:00 p.m., Central Time (CT); on Saturday from 9:00 a.m. to 5:00 p.m., CT; on Sunday from noon to 4:00 p.m., CT; Monday from 8:00 a.m. to 5:00 p.m., CT; and thereafter from 8:00 a.m. to 4:00 p.m., CT.
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.
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