Banking regulators have announced two bank closures in July, bringing the total number of bank failures this year to four. Estimates published by the Federal Deposit Insurance Corp. (FDIC) indicate these failures have cost the Deposit Insurance Fund (DIF) approximately $123.6 million in total.
The Kansas Office of the State Bank Commissioner closed Small Business Bank in Lenexa, Kansas on July 17, and appointed the FDIC as receiver. The Farmers State Bank of Oakley, Kansas, agreed to assume substantially all of the bank’s $73 million in total assets and approximately $69 million in total deposits, as of March 31.
One week prior, on July 10, the FDIC was named the receiver of Kentland Federal Savings and Loan Association of Kentland, Ind., which was closed by the Office of the Comptroller of the Currency. The bank held assets totaling $3.73 million as of March 31 and total deposits of $3.65 million. It was the smallest standalone bank in the country, according to an FDIC press release.
Preliminarily estimates released by the FDIC indicate the failure of Small Business Bank cost the DIF approximately $5.7 million and the failure of Kentland Federal Savings and Loan Association of Kentland (not affiliated with the similarly named Kentland Federal Savings and Loan Association) cost the fund an estimated $1.2 million.
The largest bank failure of the year was disclosed on May 1, when the FDIC announced the closure of Community Bank and Trust - West Georgia of LaGrange, which held a reported $288 million in total assets and total deposits of $268 million in total deposits as of December 2025. The bank’s deposits were assumed by Anchor Bank and retained their FDIC-insured status. The agency estimated the closure would cost the DIF approximately $97 million at the time.
The first bank closure of the year was Metropolitan Capital Bank & Trust, which had an estimated $261.1 million in total assets and $212.1 million in total deposits when it was shuttered by the Illinois Department of Financial and Professional Regulation. First Independence Bank agreed to assume substantially all deposits at the time of closing, which was estimated to cost the DIF approximately $19.7 million.
The FDIC noted all DIF cost estimates are expected to change over time with the future sale of retained assets.