Nano Banc Fails, Marking Sixth U.S. Bank Collapse of 2026; Sunwest Bank Acquires Assets

Irvine, California-based Nano Banc was closed by the California Department of Financial Protection and Innovation on Sept. 25, 2026, marking the sixth U.S. bank failure this year and the largest of the decade's most prolific collapse year. Sandy, Utah-based Sunwest Bank agreed to assume most of Nano's assets through a deal with the FDIC as receiver. Sunwest will purchase approximately $476 million of Nano's assets, assume $605 million in deposits and $227 million in loans, per the FDIC. Nano reported $736 million in assets as of June, though the DFPI cited roughly $690 million. The FDIC estimates the failure will cost the Deposit Insurance Fund about $114 million. The DFPI cited deteriorating financial condition, multi-year executive mismanagement and regulatory violations. Nano reported a $75.3 million net loss, and its shareholder equity fell below the 3% statutory minimum. Federal and state regulators issued enforcement actions against the bank starting in 2021. Two former executives were banned from banking in 2024 for fraudulently obtaining COVID-era loans.