Failures

Small Business Bank in Kansas failed on Friday, the second failure in a week and the fourth failure overall in 2026.

Kentland Federal became the third bank this year to fail; meanwhile, American Banker today publishes its list of the best-performing small banks.

The failure of Kentland Federal Savings and Loan, the nation's smallest standalone bank at $3.7 million of assets, will cause an estimated $1.2 million hit to the deposit insurance fund, according to the Federal Deposit Insurance Corp. Kentland's failure is the third bank failure in 2026.

Researchers at the Federal Reserve Bank of New York analyzed more than 3,000 historical bank runs and found that weak financial fundamentals — rather than pure depositor panic — determine whether a bank run translates into a bank failure or broader financial crisis. 

The Federal Deposit Insurance Corp. says executives "gambled" with depositor funds, while the former parent company argues regulators are using hindsight to second-guess what were reasonable business decisions at the time.

The Federal Deposit Insurance Corp. issued proposals Thursday that would reduce planning requirements for big banks and slash deposit insurance prices, citing the financial health of the Deposit Insurance Fund.

Chair Travis Hill wants to shift resolution planning away from lengthy bank-generated narratives and toward rapid access to critical operational data during failures.

Almost 60 SBA loans originated by Community Bank & Trust — West Georgia were classified as noncurrent, according to Small Business Administration records. Last week, Community became the second U.S. bank to fail in 2026.

Community Bank & Trust in Georgia, the second bank failure this year, shows what happens when bankers don't keep things simple.

Bank runs are only the final symptom of a much deeper malady, according to a new study.

The Chicago-based, $261 million-asset Metropolitan Capital Bank & Trust was placed in receivership and its assets sold to Detroit-based First Independence Bank, costing the Federal Deposit Insurance Corp.'s Deposit Insurance Fund an estimated $19.7 million.

Danny Seibel, who led First National Bank of Lindsay from 2007 until shortly before the bank's failure last year, is accused of falsifying bank documents to conceal the condition of loans.

The National Credit Union Administration, operating with just one board member, has liquidated two credit unions that were recently put into conservatorship. The failures are the first credit union failures since Democrats on the board were fired, leaving Republican Chair Kyle Hauptman.

The Santa Anna National Bank in Central Texas is the second bank to fail this year.

Pulaski Savings Bank's failure will cost the FDIC's Deposit Insurance Fund 57.6% of its total assets.

When a Chicago bank crashed, delivering a major blow to the Deposit Insurance Fund, regulators said they suspected fraud. Historically, that's a common story.

Acting Chair Travis Hill's push for quick weekend bank sales signals a break from past crisis strategies — but some experts warn of higher costs and increased consolidation risks

President Trump's tariff regime and resulting price shocks may put additional pressure on small banks, requiring an already undermanned Federal Deposit Insurance Corp. to turn to assisted M&A deals to resolve failed banks, accelerating consolidation in the industry.

The Chicago-based bank, which failed Friday in the first bank failure of 2025, caused a $28.5 million hit to the Deposit Insurance Fund. The FDIC was appointed receiver and Millennium Bank will assume all deposits.

The agency had been on the verge of downgrading Philadelphia-based Republic First Bancorp's CAMELS rating to the lowest level but opted for a less severe remedy after a November 2020 visit.