It is the first FDIC-backed bank to fail in Kentucky since 2013.

FRANKFORT, Ky. — Kentucky officials have taken possession of a Louisa bank after determining it was "critically undercapitalized."

A release from Kentucky's Department of Financial Institutions says the state agency along with the Federal Deposit Insurance Corporation have been closely monitoring Louisa Community Bank. It is the first FDIC-backed bank to fail in Kentucky since 2013.

Kentucky Farmers Bank of Catlettsburg has entered into a purchase and assumption agreement to take over the Louisa bank's deposits.

The Louisa bank has been operating since 2006 and had nearly $30 million in total assets. The bank will reopen Saturday morning as Kentucky Farmers Bank and will resume normal business hours.