Oct 15, 2026 · 14 min · 6 segments
Nano Bank in Irvine, California has become the sixth bank failure of 2026! 2026 has now become the year with the largest number of bank failures this decade. The next largest year is 2017 with eight…
The, uh, Sunwest Bank acquired most of the assets, deposits, and loans from the long-troubled bank.
So Irvine, California-based Nanobank failed on Friday, this was actually a couple weeks ago, uh, meaning 2026 is outpacing every other year this decade in terms of bank collapses with six.
Uh, Sandy, Utah-based Sunwest Bank agreed to assume most of Nano's assets through a deal with the FDIC, which became the failed bank's receiver after the California Department of Financial Protection and Innovation closed Nano on Friday.
California's DFPI n- uh, cited Nano's deteriorating financial condition as well as a multi-year pattern of executive mismanagement and regulatory violations among reasons for its closure.
The regulator in March issued an order requiring Nano to increase its tangible shareholders' equity ratio to at least 9.5% or else voluntarily liquidate, sell, or merge with another institution.
Nanobank failed to successfully take any of the available actions, the DFPI said, noting the lender's shareholder equity had fallen below a statutory minimum of 3%, giving it an unsafe and unsound designation.
The March order came after Nano reported a net loss of 75.3 million, the DFPI said, uh, but the bank's missteps long predated that.
The DFPI said it saw significant risk management weaknesses and violations of law as early as 2020, including repeated unauthorized changes to the board and C-suite and executive self-dealing.
Uh, the Fed and the DFPI issued enforcement actions against the bank in February of 2021.
The central bank's order focused on concern over Nano's concentration of commercial real estate loans.
The California regulator, meanwhile, ordered Nano to give advance notice before appointing, electing, or adding new individuals to its board or executive management.
Uh, the state regulator followed up in December of 2021, handing Nano a cease and desist order for putting executives on administrative leave, naming a new CEO and chair, and replacing directors without the notice required in the February enforcement action.
The Fed ordered wide-ranging changes to Nano's compliance and governance practices, seeking improved oversight of lending to bank insiders, stronger leadership at both the bank and the board level, and a thorough look at deficiencies concerning insider transactions and corporate expenses.
So they terminated that in April of last year, and then less than a year and a half later, they're closing the bank.
The, uh, Sunwest Bank acquired most of the assets, deposits, and loans from the long-troubled bank.
So Irvine, California-based Nanobank failed on Friday, this was actually a couple weeks ago, uh, meaning 2026 is outpacing every other year this decade in terms of bank collapses with six.
Uh, Sandy, Utah-based Sunwest Bank agreed to assume most of Nano's assets through a deal with the FDIC, which became the failed bank's receiver after the California Department of Financial Protection and Innovation closed Nano on Friday.
California's DFPI n- uh, cited Nano's deteriorating financial condition as well as a multi-year pattern of executive mismanagement and regulatory violations among reasons for its closure.
The regulator in March issued an order requiring Nano to increase its tangible shareholders' equity ratio to at least 9.5% or else voluntarily liquidate, sell, or merge with another institution.
Nanobank failed to successfully take any of the available actions, the DFPI said, noting the lender's shareholder equity had fallen below a statutory minimum of 3%, giving it an unsafe and unsound designation.
The March order came after Nano reported a net loss of 75.3 million, the DFPI said, uh, but the bank's missteps long predated that.
The DFPI said it saw significant risk management weaknesses and violations of law as early as 2020, including repeated unauthorized changes to the board and C-suite and executive self-dealing.
Uh, the Fed and the DFPI issued enforcement actions against the bank in February of 2021.
The central bank's order focused on concern over Nano's concentration of commercial real estate loans.
The California regulator, meanwhile, ordered Nano to give advance notice before appointing, electing, or adding new individuals to its board or executive management.
Uh, the state regulator followed up in December of 2021, handing Nano a cease and desist order for putting executives on administrative leave, naming a new CEO and chair, and replacing directors without the notice required in the February enforcement action.
The Fed ordered wide-ranging changes to Nano's compliance and governance practices, seeking improved oversight of lending to bank insiders, stronger leadership at both the bank and the board level, and a thorough look at deficiencies concerning insider transactions and corporate expenses.
So they terminated that in April of last year, and then less than a year and a half later, they're closing the bank.
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