Nano Banc closed by California regulators; FDIC estimates $114M loss

California regulators closed Irvine-based Nano Banc on September 25, 2026, following years of supervisory issues and financial losses. The California Department of Financial Protection and Innovation seized the institution and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

Under a purchase-and-assumption agreement, Sunwest Bank of Sandy, Utah, will assume substantially all of Nano Banc’s deposits and purchase approximately $476 million in assets. As of June 30, 2026, Nano Banc reported total assets of $736 million and total deposits of $686 million. Sunwest Bank will assume approximately $605 million in deposits and $227 million in loans.

The FDIC estimates the failure will cost its Deposit Insurance Fund approximately $114 million. Depositors will automatically become customers of Sunwest Bank, with the bank’s sole branch scheduled to reopen on Monday, September 28, 2026. Customers will maintain immediate access to their funds via checks, ATMs, or debit cards.