California regulators on Friday closed Nano Banc of Irvine and appointed the FDIC as receiver. Sunwest Bank of Sandy, Utah, has agreed to assume substantially all deposits and purchase certain assets of the bank.
As of June 30, Nano Banc reported $736 million in total assets and $686 million in total deposits. Sunwest Bank will 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.
