Kansas bank found ‘significantly undercapitalized,’ must seek acquisition, merger with another institution

A Lenexa, Kansas, bank is “significantly undercapitalized” and has adopted a prompt corrective action directive prepared by the Federal Reserve, the agency said Thursday.

Small Business Bank of Lenexa adopted the prompt corrective action directive after being found undercapitalized by the Fed as of June 18.

Among other things, the bank has agreed to (among other things) to increase its equity through the sale of shares or contributions to surplus in an amount sufficient to make the it adequately capitalized, according to the agreement with the Fed.

It has also agreed to be acquired by another bank holding company, or combine with another bank, to meet adequate capital requirements.

The bank has 30 days to follow through on those provisions.

Small Business Bank was chartered in 1984. As of the first quarter of this year it held $72.9 million in assets. That’s down from its peak at the third quarter of 2022 when it held $103.8 million in assets.

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