The California Department of Financial Protection and Innovation (DFPI) seized Nano Banc and appointed the Federal Deposit Insurance Corporation (FDIC) as a receiver.
The moves come after Irvine, Calif.-based Nano Banc failed to comply with DFPI’s latest enforcement order related to its deteriorating financial condition. It also follows a multi-year pattern of executive mismanagement and regulatory violations. In seizing the bank, DFPI said it is taking action to protect consumers and preserve confidence in the banking system.
Nano Banc commenced operations in 2018, when Nano Financial Holdings acquired Commerce Bank of Temecula Valley. Starting in 2020, DFPI discovered significant risk management weaknesses and violations of law, including repeated unauthorized changes to the board and C-suite and executive self-dealing resulting in financial deterioration.
DFPI has taken numerous enforcement actions relating to Nano Banc. It acted against two former executives and prohibited their future involvement with the bank. DPFI also issued an order requiring Nano Banc to give advance notice before appointing, electing, or adding any new individuals to the Board and executive management.
In addition, DFPI issued a cease-and-desist order after Nano Banc violated DFPI’s initial order by putting executives on administrative leave, naming a new CEO and chairman, and replacing directors without the legally required notice.
In March 2026, after Nano Banc reported a net loss of roughly $75.3 million, DFPI issued an order requiring the bank to significantly increase and maintain its available capital, including maintaining at least 9.5 percent tangible shareholders’ equity. Nano Banc failed to successfully take any of the available actions.
Furthermore, its shareholders’ equity fell below a statutory minimum of 3 percent, meaning Nano Banc was operating with inadequate capital and in an unsafe and unsound manner. This led DFPI to seize the bank and place it into receivership.
Nano Banc holds total assets of roughly $690 million. The FDIC has accepted a bid from Sunwest Bank in Sandy, Utah, to assume all deposits, including all uninsured deposits, and a substantial portion of its assets.
Nano Banc customers will automatically become customers of Sunwest Bank. They will have uninterrupted customer service assistance and access to their funds by ATM debit cards and checks.