Nano Bank becomes sixth bank failure of 2026!

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 bank failures. In terms of asset size, the combined six bank failures this year account for approximately 1.41 billion is assets, which is minuscule compared to the $552 billion that was lost in 2023 with three of the largest bank failures in U.S. history. Nano Bank was a very troubled bank reporting a loss of $75 million for fiscal year 2025. Nano’s total assets ranged between $690M to $736M. The FDIC is estimating that this failure will cost the Deposit Insurance Fund (DIF) approximately $114M. Nano had trouble with regulators stretching back to 2020. Nano was under a consent order at one point and was constantly shuffling executives, board members, and investors. In addition, Nano had major credit problems with a large amount of bad loans, which ultimately sunk the bank. Nano follows a very similar pattern with the other five banks that failed in 2026. This episode reviewed an article from Banking Dive and S&P Global (subscription required). A link to the Banking Dive article is included below.

Link: California’s Nano Banc fails | Banking Dive