FDIC Closed Irvine Lender Nano Banc
The bank failed amid regulatory concerns, with Sunwest Bank acquiring its deposits and most assets.
Updated on Sept. 26, 2026 in Financial Crime
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The Federal Deposit Insurance Corporation (FDIC) has closed Irvine-based Nano Banc, making it the sixth bank failure of 2026. Sunwest Bank has agreed to acquire substantially all of the failed lender's deposits and $476 million in assets.
Why it matters
The closure follows years of regulatory scrutiny, including a 2021 enforcement action regarding real estate risk and a 2022 cease-and-desist order concerning insider transactions. The failure is estimated to cost the FDIC's Deposit Insurance Fund $114 million.
Nano Banc had $736 million in total assets at the time of failure. The FDIC will retain approximately $260 million of those assets for future disposition.
The players
Federal Deposit Insurance Corporation
This independent agency of the U.S. government maintains stability and public confidence in the nation's financial system by insuring deposits.
Nano Banc
This was a regional lender operating a single branch in Irvine, California.
Sunwest Bank
Headquartered in Sandy, Utah, this financial institution acquired the deposits and a portion of the assets from the failed lender.
Anthony R. Gressak III
He was an individual associated with the institution who was banned from the banking industry in 2024 following allegations of fraud.
The details
The institution's single Irvine branch will reopen as a Sunwest Bank location. The regulatory issues cited previously included deficiencies in corporate expenses and commercial real estate concentration risks, alongside allegations that former figure Anthony R. Gressak III obtained $15.5 million in pandemic relief funds fraudulently.
Timeline
February 2021: Federal Reserve issued an enforcement action against Nano Banc.
January 2022: Regulators issued a cease-and-desist order.
2024: Anthony R. Gressak III was fined and banned from banking.
September 25, 2026: The FDIC announced the failure of Nano Banc.
September 28, 2026: The Irvine branch reopens as a Sunwest Bank location.
Legal Context
The bank's closure follows standard resolution protocols defined by the FDIC Deposit Insurance Fund's failure resolution protocols. These measures are designed to maintain financial stability when a lender can no longer meet its regulatory obligations.
Customers of the former Nano Banc branch in Irvine will see their accounts transferred to Sunwest Bank, ensuring continued access to their deposits. The transition of the physical branch is scheduled to be completed by September 28, 2026.
The takeaway
Bank failures remain relatively rare, with Nano Banc being only the sixth institution to close in 2026. Regulatory orders regarding internal controls often serve as early indicators of instability that depositors should monitor.
Further reading
Learn more about local oversight in the Financial Crime section.
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