Almena State Bank of Almena, Kan., was closed by the Kansas Office of the State Bank Commissioner on Friday. Its failure stemmed from “longstanding capital and asset quality issues” unrelated to the pandemic, the FDIC said in its release.
Equity Bank, Andover, Kan., assumed $68.7 million in deposits from the bank and essentially all of its loans. The $70 million Almena State had two branches in Alemna and Norton, Kan.
“We’re proud to welcome new customers to the Equity Bank network. Our top priority is to work side-by-side with the community bankers who our Norton County customers trust and value, ensuring our customers don’t miss a beat,” said Brad Elliott, Chairman and CEO of Equity.
The $3.9 billion Equity has 51 other offices in Kansas, Missouri, Arkansas and Oklahoma.
The cost to the Deposit Insurance Fund will be about $18.3 million.
This is the fourth failure of the year. Previously, First City Bank of Florida, Fort Walton Beach, Fla., was closed on Oct. 16; The First State Bank in Barboursville, W.Va., failed in April, and Ericson State Bank in Ericson, Neb., was closed in February.