Kansas City, Mo. ? Federal banking regulators on Friday closed a Kansas City-area bank, saying “unsafe and unsound practices” had led to substantial losses and a drawdown of assets.

Douglass National Bank, a 25-year-old institution and only black-owned bank in the Kansas City area, had $58.5 million in assets and $53.8 million in deposits as of Oct. 22, said the Federal Deposit Insurance Corp.

The FDIC said it transferred those deposits and assets to Liberty Bank and Trust, a New Orleans-based bank, which will now take over operation of Douglass’ three branches in Missouri and Kansas, starting Monday.

The FDIC said Liberty will purchase about $55.7 million of the bank’s assets at book value, less a $6.1 million discount.

The FDIC will hold on to $2.8 million for later disposition.

In a news release, the Office of the Comptroller of the Currency said it decided to close Douglass “after finding that the bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices,” without elaborating.

“The OCC also found that the bank had incurred and is likely to incur losses that will deplete all or substantially all of its capital, and there is no reasonable prospect that the bank will become adequately capitalized without federal assistance,” it said.

A spokeswoman for the Kansas City-based bank wasn’t available for comment Friday evening.

The FDIC said it estimated the cost of taking over the bank will cost its Deposit Insurance Fund $5.6 million.

It said Douglass was the first FDIC-insured bank to fail this year and the first Missouri bank to fail in 13 years.