3rd and 4th bank failures of 2026 as regulators close banks in Indiana and Kansas

Kentland Federal Savings Loan Association (KFS) located in Kentland, Indiana and Small Business Bank (SBB) located in Lenexa, Kansas are the 3rd and 4th bank failures of 2026. KFS was closed on Friday, July 10th by the OCC after its capital position became critically undercapitalized. KFS had $3.73 million in assets at the time of its closing. Nearby (but unrelated) Kentland Bank was appointed receiver by the FDIC. SBB was closed on Friday, July 17th by Kansas state regulators after the bank was deemed to be significantly undercapitalized. SBB had $73 million in assets at the time of its closing. The Farmers State Bank agreed to assume all of SBB’s deposits and purchase some of its assets according to the FDIC, who is acting as receiver. The deposit insurance fund will incur small losses from both bank failures according to the FDIC. This episode examined multiple articles from S&P Global Market Intelligence and Banking Dive.