The Farmers and Merchants State Bank of Argonia, Kan., was shut down by regulators Friday, the seventh institution to fail this year.

Conway Bank agreed to acquire the operations of the failed bank, which had $34.2 million of assets. The acquirer will assume all the failed bank's $29.6 million of deposits and purchase essentially all of its assets.

Conway Bank, based in Conway Springs, Kan., will also take over the two branches of The Farmers and Merchants State Bank of Argonia. The acquirer agreed to pay the Federal Deposit Insurance Corp. a 2.5% premium for the failed bank's deposits.

Farmers and Merchants State Bank of Argonia was the first bank to fail in Kansas since Heartland Bank in Leawood was closed in July 2012.

The FDIC estimated the failure would cost the Deposit Insurance Fund $2.6 million.

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Lalita Clozel

Lalita Clozel covers fintech regulation, anti-money-laundering, cybersecurity and the Federal Deposit Insurance Corp. in American Banker's Washington bureau.