U.S. regulators have shut down Nano Banc of Irvine, California, marking the sixth bank failure of 2026. The California Department of Financial Protection and Innovation closed the bank on Friday, with the Federal Deposit Insurance Corporation (FDIC) appointed as receiver.
The closure followed a March 2026 capital order requiring the bank to maintain tangible shareholders' equity of at least 9.5% or pursue sale, merger, or liquidation. By September 22, the bank's tangible equity had declined to approximately $5.6 million, representing 0.82% of assets against a 3% statutory minimum.
As of June 30, 2026, Nano Banc reported approximately $736 million in assets and roughly $686 million in deposits. The FDIC entered a purchase and assumption agreement with Sunwest Bank of Sandy, Utah, which will assume substantially all deposits and acquire approximately $476 million in assets. The FDIC will retain remaining assets for later sale.
The bank's sole branch will reopen as a Sunwest Bank location on Monday, September 28, 2026. Depositors will automatically become Sunwest customers, with deposits continuing to receive FDIC insurance protection. Customers retain immediate access to deposits through checks, ATMs, and debit cards, and loan customers should continue regular payments.
The FDIC estimates the failure will cost the Deposit Insurance Fund approximately $114 million, pending the sale of retained assets. The holding company, Nano Financial Holdings, Inc., was not included in the closure.
Earlier 2026 bank failures include Metropolitan Capital Bank & Trust in Illinois, Community Bank and Trust – West Georgia, Kentland Federal Savings and Loan Association in Indiana, Small Business Bank in Kansas, and Tioga-Franklin Savings Bank in Pennsylvania.
