Kentland Federal Savings and Loan closed by OCC
Kentland Bank to purchase thrift's deposits and assets, including equipment
Kentland Federal Savings and Loan Association, the smallest standalone bank in the United States, was closed on July 10 by the Office of the Comptroller of the Currency, with the FDIC named as receiver.
The FDIC entered into an agreement with Kentland, Ind.-based Kentland Bank, which is not affiliated with the failed institution, to purchase essentially all of the thrift bank’s assets and assume all of its deposits, according to a July 10 FDIC release.
As of March 31, Kentland Federal Savings and Loan Association, which offered equipment leasing as one of its core commercial finance businesses, reported $3.73 million in total assets and $3.65 million in total deposits. It closed as a result of “substantial dissipation of assets and earnings due to unsafe and unsound practices,” according to an OCC release.
The thrift’s customers will automatically become depositors of Kentland Bank, and their deposits will remain insured by the FDIC. Borrowers of Kentland Federal should now make loan payments through Kentland Bank.
At the end of 2025, the amortized value of Kentland Bank’s equipment loan portfolio was nearly $688,000, according to its annual report. It is unclear how the bank’s equipment portfolio will change after assuming the thrift’s loans.
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