On July 17, the Kansas Office of the State Bank Commissioner closed a Kansas-based bank and appointed the FDIC as receiver. According to the Kansas regulator, the bank had operated with financial difficulties for the past several years, had been subject to strict supervisory oversight, and had ongoing operating losses that resulted in the bank’s capital becoming “critically undercapitalized under federal and state law.” As of March 31, the bank reported total assets of $73 million and total deposits of approximately $69 million. The FDIC entered into an agreement with a separate Kansas-based bank to assume substantially all of the closed bank’s deposits and purchase certain assets. The FDIC preliminarily estimated that the failure will cost the Deposit Insurance Fund approximately $5.7 million, an estimate the agency said is expected to change as retained assets are sold.