US regulators have abruptly shut down a California bank in the sixth bank failure of 2026.
The Federal Deposit Insurance Corporation (FDIC) says the California Department of Financial Protection and Innovation closed Nano Banc of Irvine on Friday and appointed the FDIC as receiver.
The California DFPI says it seized the bank after a March 6th, 2026 capital order required tangible shareholders’ equity of at least 9.5% or an exit through sale, merger, or liquidation.
By September 22nd, tangible equity had fallen to about $5.6 million, or 0.82% of assets, against a 3% statutory floor, according to the state order.
The FDIC entered into a purchase and assumption agreement with Sunwest Bank of Sandy, Utah, which will assume substantially all deposits and acquire certain assets.
“Nano Banc’s sole branch will reopen as a branch of Sunwest Bank during its normal business hours on Monday, September 28, 2026. Depositors of Nano Banc will automatically become depositors of Sunwest Bank. The deposits assumed by Sunwest Bank will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship.”
As of June 30th, 2026, Nano Banc reported about $736 million in assets and roughly $686 million in deposits.
Sunwest agreed to purchase about $476 million of the failed bank’s assets, with the FDIC retaining the rest for later sale.
Preliminary estimates show the failure will cost the Deposit Insurance Fund about $114 million, a figure expected to change as retained assets are sold.
The FDIC says customers keep immediate access to deposits, including by check, ATM, and debit card, and loan customers should keep making payments as usual.
An FDIC FAQ for the closure says no one lost money on deposits and that substantially all deposits, regardless of dollar amount, were transferred to Sunwest.
Holding company Nano Financial Holdings, Inc. was not included in the closing or receivership.
Earlier 2026 failures covered by The Daily Hodl 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. With Nano Banc, that makes six bank failures in 2026.
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