California regulators shut Irvine-based Nano Banc on Friday, marking the sixth US bank failure reported in 2026. The California Department of Financial Protection and Innovation closed the bank and appointed the Federal Deposit Insurance Corporation as receiver.

The FDIC said it has reached a purchase and assumption agreement with Sunwest Bank of Sandy, Utah. Under that deal, Sunwest will assume substantially all of Nano Banc’s deposits and acquire selected assets, while the FDIC will retain the rest for later sale.

Capital order preceded the shutdown

State regulators said the closure followed a March 6, 2026 capital order that required Nano Banc to maintain tangible shareholders’ equity of at least 9.5% or pursue an exit through a sale, merger, or liquidation.

According to the state order, the bank’s tangible equity had fallen to about $5.6 million by September 22, equal to roughly 0.82% of assets. That was below the 3% statutory minimum cited by regulators.

Sunwest to take deposits and part of the balance sheet

As of June 30, 2026, Nano Banc reported about $736 million in total assets and approximately $686 million in deposits. The FDIC said Sunwest agreed to buy about $476 million of the failed bank’s assets, while the agency will keep the remaining assets for disposition at a later stage.

The agency also said Nano Banc’s sole branch will reopen as a Sunwest branch during normal business hours on Monday, September 28, 2026. Customers are being transferred automatically, with no action required to keep their banking relationship in place.

Depositors keep access as FDIC estimates losses

The FDIC said depositors will continue to have immediate access to their funds, including through checks, ATMs, and debit cards. Its closure FAQ states that no depositor lost money and that substantially all deposits were transferred to Sunwest regardless of dollar amount.

For borrowers, the agency said loan customers should continue making payments as usual. The FDIC’s preliminary estimate is that Nano Banc’s failure will cost the Deposit Insurance Fund about $114 million, though that figure may change as retained assets are sold.

What was left outside the receivership

The receivership did not include Nano Financial Holdings, Inc., the bank’s holding company. The closure applied to the bank itself, with the FDIC taking over as receiver after the state moved to seize the institution.

With Nano Banc’s collapse, the running total of US bank failures in 2026 has reached six. Earlier failures mentioned alongside this case were 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.

Source: dailyhodl.com