Sunwest Bank of Sandy, Utah, has assumed substantially all deposits and acquired certain assets of the failed California-based Nano Banc, following the seizure of the Irvine institution by state regulators on Sept. 25, 2026. The acquisition, which includes all uninsured deposits, follows a period of declining capital and weakening financial conditions at the California bank.
Regulatory Seizure of Nano Banc
The California Department of Financial Protection and Innovation seized Nano Banc and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver on Sept. 25, 2026. According to the DFPI, the seizure was taken to protect consumers and preserve confidence in the banking system after the bank failed to comply with previous enforcement actions regarding its financial health.
Nano Banc had been under regulatory scrutiny for several years. The institution was subject to an order on Feb. 24, 2021, followed by a cease and desist order on Dec. 15, 2021. Further regulatory actions included an order on May 2, 2022, and a consent order on March 6, 2026. The DFPI had previously terminated a prior order on April 10, 2025.
Impact on Bank Customers
Under the purchase and assumption agreement with the FDIC, Sunwest Bank will take over Nano Banc's operations, and former Nano Banc locations are expected to reopen as Sunwest Bank branches during regular business hours.
Depositors of Nano Banc can continue using their existing checks, ATM cards, and debit cards. Direct deposits, such as paychecks and Social Security benefits, will continue as usual. While Sunwest Bank will review deposit rates, customers will be notified in writing of any changes.
For customers holding accounts at both institutions, the FDIC noted that deposits will be insured separately for at least six months following the failure to allow time for account restructuring.
Loan and Security Information
Borrowers must continue to make payments, including escrow payments, according to their existing written contracts. Loan terms will not change, though borrowers should contact their loan officers if they have questions regarding in-process loans or lines of credit.
The FDIC emphasized that no one lost money on deposits as a result of the closure. However, the agency warned the public to be wary of scams, noting that neither the FDIC, Sunwest Bank, nor Nano Banc will request private information through unsolicited communications.
Holding Company Status
The transaction did not involve Nano Financial Holdings, Inc., the bank's holding company. Shareholders of the holding company were advised that they were not included in the bank's closing or the resulting receivership and must contact the holding company directly for information.
