In free standing films of one smectic C* material, Chisso 1015, we observe circular islands, of greater thickness than the background film. These islands, nucleated by smoke particles, grow to an equilibrium diameter that is a function of their thickness. We present data on island size, and a theory attributing the finite equilibrium size to a negative island edge energy arising from a spontaneous bend term in the elastic free energy for the islands. We also observe textural transformations within the islands, attributed to a difference between splay and bend elastic constants, combined with weak anchoring of the director at a point disclination at the center of an island.