Irvine-based Nano Banc, a fast-growing bank started in 2018, received an order from the Federal Reserve to hire a new chief executive, chief financial officer and chief credit officer by the end of the month.
“Such executive officers shall have the qualifications and experience necessary to fulfill their duties and responsibilities, restore the Bank to a safe and sound condition, comply with applicable laws and regulations, and comply with the provisions of this Order,” the Federal Reserve said.
It also required the bank to achieve the minimum number of directors required under applicable state law, with a majority being outside directors. It gave a deadline of 10 days after the order, which was dated Jan. 18.
The bank received a similar order last month from the California Department of Financial Protection. Regulators in the past year have criticized the bank’s governance, staffing, and lending practices, especially in commercial real estate,
A bank spokesman earlier this month told the Business Journal that the bank is still operating and is working with regulators to restore its regulatory standing.
Nano Banc ranked No. 6 on the Business Journal’s most recent list of banks headquartered in Orange County; it reported $1.3 billion in assets for the period ended June 30, up 13% from a year before.