California regulators closed Nano Banc of Irvine on 25 September and appointed the Federal Deposit Insurance Corporation as receiver. Sunwest Bank agreed to assume substantially all deposits and acquire certain assets. Depositors automatically became Sunwest customers and retained immediate access to their funds. Nano Banc’s sole branch was scheduled to reopen as a Sunwest branch on 28 September.
Nano Banc reported approximately $736 million of assets and $686 million of deposits at 30 June 2026. Sunwest agreed to purchase about $476 million of assets, with the FDIC retaining the remainder for later disposition. The FDIC estimated that the resolution would cost the Deposit Insurance Fund about $114 million, subject to change. DEPOSITS TRANSFERRED TO SUNWEST
The FDIC said deposits assumed by Sunwest would continue to be insured, so customers did not need to change their banking relationship. The FDIC said customers could access their deposits over the weekend by cheque or ATM and debit card. Loan customers were told to keep making payments on their usual terms. The receiver retained assets that were not included in Sunwest’s purchase.
American Banker reported that Nano Banc was the sixth US bank failure of 2026. California’s Department of Financial Protection and Innovation cited the bank’s deteriorating financial condition, its failure to comply with an enforcement order and a multi-year pattern of executive mismanagement and regulatory violations. It also moved substantially all of the failed bank’s deposits to Sandy, Utah-based Sunwest Bank. RESOLUTION COST REMAINS PROVISIONAL
The estimated $114 million fund cost equals roughly one-sixth of Nano Banc’s reported deposits, although the final amount will depend on recoveries from retained assets. Sunwest’s asset purchase covered about 65% of Nano Banc’s reported asset base. The remaining portfolio will be marketed or collected by the receiver.
The next operational milestone is the branch conversion under Sunwest’s name. The FDIC has said its cost estimate may change as the retained assets are sold.