Kentland Federal Savings and Loan Association in Indiana was closed by the Office of the Comptroller of the Currency on July 10. .The OCC then appointed the FDIC as receiver, which then entered into an agreement with Kentland Bank to purchase and assume the deposits of the bank. Kentland Bank is unaffiliated with Kentland Federal Savings and Loan Association. The FDIC described Kentland Federal Savings and Loan Association as the smallest standalone bank in the country with $3.73 million in assets and $3.65 million in deposits. The savings and loan association’s lone branch in Kentland will permanently close, with depositors automatically becoming depositors of Kentland Bank. The FDIC estimates the failure will cost its Deposit Insurance Fund $1.2 million. The cause of the failure was not listed. In 2023, the OCC issued a cease-and-desist order against Kentland Federal Savings & Loan Association for allegedly having unsafe and unsound practices surrounding strategic and capital planning, liquidity risk management and interest rate management. At the time, the bank was ordered to keep a leverage ratio at least equal to 10 percent. The failure is the third this year, following Metropolitan Capital Bank & Trust in Chicago in late January and Community Bank and Trust-West Georgia on May 1.
