I guess now that President Xi is gone we can start showing how weak the community and regional banks are again, right?

Or am I too soon to start the ranting about that?

Regardless, here is the press release from the FDIC tonight:

Sunwest Bank Assumes All Deposits and Certain Assets of Nano Banc, Irvine, California

September 25, 2026

WASHINGTON—Nano Banc of Irvine, California was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC entered into a purchase and assumption agreement with Sunwest Bank of Sandy, Utah to assume substantially all deposits and acquire certain assets of Nano Banc. 

Nano Banc’s sole branch will reopen as a branch of Sunwest Bank during its normal business hours on Monday, September 28, 2026. Depositors of Nano Banc will automatically become depositors of Sunwest Bank. The deposits assumed by Sunwest Bank will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship.

Customers of Nano Banc will have immediate access to their deposits. Over the weekend, they can access their deposits by writing checks or using ATM or debit cards. Checks drawn on Nano Banc will continue to be processed. Loan customers of Nano Banc should continue to make their payments as usual. 

Customers with questions may visit the FDIC’s website or contact the FDIC toll-free at 1-866-314-1744. This phone number will be operational this evening until 8:00 p.m., Pacific Time (PT); on Saturday from 9:00 a.m. to 5:00 p.m., PT; Sunday from 12:00 p.m. to 4:00 p.m., PT; Monday from 8:00 a.m. to 5:00 p.m., PT, and thereafter, weekdays from 8:00 a.m. to 4:00 p.m., PT. 

As of June 30, 2026, Nano Banc reported total assets of $736 million and total deposits of $686 million. Sunwest Bank agreed to assume substantially all deposits at the time of closing. It will also purchase approximately $476 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.

The FDIC preliminarily estimates that the failure will cost the Deposit Insurance Fund approximately $114 million. The estimate is expected to change over time as retained assets are sold.

$114 million hit to the DIF? That’s a decent shot to the belly. But let’s see some of the underlying stories behind what lead to this by scanning the news.

From YahooFinance via Banking Dive:

Fed bans California bank’s ex-interim CEO over alleged PPP, EIDL fraud

Well that isn’t good.

But wait, there’s more, like this Cease and Desist order from California’s bank regulators:

Nano Bank Financial Code 581 – Order to Cease and Desist

So to say this news tonight is a shocker would be quite untrue. Buckle up though because after the elections are over the few FDIC regulators lewt might find themselves quite busy as CRE starts to implode nationwide.