No sooner than this author finished typing up the story about a credit union failure, here comes the FDIC with a hold my beer we found a truly community bank to shut down.
From the FDIC website:
Kentland Bank Assumes All Deposits of Kentland Federal Savings and Loan Association
July 10, 2026
WASHINGTON—Kentland Federal Savings and Loan Association of Kentland, Indiana was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC entered into an agreement with Kentland Bank of Kentland, Indiana (no affiliation with Kentland Federal Savings and Loan Association) to purchase substantially all assets and assume all deposits of Kentland Federal Savings and Loan Association.
As of March 31, 2026, Kentland Federal Savings and Loan Association reported total assets of $3.73 million and total deposits of $3.65 million. It was the smallest standalone bank in the United States.
The sole branch of Kentland Federal Savings and Loan Association will permanently close. Depositors of Kentland Federal Savings and Loan Association will automatically become depositors of Kentland Bank. The deposits assumed by Kentland Bank will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship. The Kentland branch of Kentland Bank is located at 111 N 4th St, Kentland, Indiana 47951, and the phone number is 219-474-1500.
Customers of Kentland Federal Savings and Loan Association will have immediate access to their deposits at all branches of Kentland Bank during normal business hours beginning Monday, July 13, 2026. Loan customers of Kentland Federal Savings and Loan Association should make payments to Kentland Bank at any branch of Kentland Bank.
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 $1.2 million.
Tonight it appears the podunk institutions are the target. But what is the big story about this bank failing? From the Wall Street Journal tonight(subscription required to read entire story):
America’s Smallest Bank Just Folded
Excerpt:
Nestled near the Illinois border in Indiana, Kentland Federal Savings and Loan was founded in 1920 and has been managed by four generations of the Sammons family, according to its website. Its one location will close, regulators said.
It’s a crying shame as they had no fees, were supposedly run, well, like the fictional Bailey Brothers Building and Loan back in the old days and now they are gone.
America, it truly was a wonderful life. But we could be on the precipice of that event many of us have feared since 2006 where the major institutions are given free range to seize as many marginal smaller banks and credit unions as possible to stabilize the US financial system.
It’s only a matter of time.
Maybe Clarency Odbody can make an appearance soon and restore our system to the good old days of financial sanity.