Tioga-Franklin Savings Bank becomes fifth U.S. bank failure in 2026
On August 23, 2026, Philadelphia-based Tioga-Franklin Savings Bank was closed by regulators and placed into receivership under the Federal Deposit Insurance Corporation (FDIC). Second Federal Savings and Loan Association of Philadelphia assumed all deposits and most assets. With only $68 million in total assets as of June 30, 2026, Tioga-Franklin is now the fifth bank to fail this year. Tioga-Franklin was one of approximately 22 Black-owned banks in the U.S., having been founded in 1873. The FDIC estimates its failure will cost about $5.5 million from the Deposit Insurance Fund, though that figure may change as assets are liquidated. Second Federal Savings and Loan Association now holds around $115 million in total assets following this acquisition. The bank had been under regulatory scrutiny since 2023 for weaknesses related to capital planning, earnings, strategic direction, compliance with the Bank Secrecy Act, anti-money laundering protocols, internal controls, loan documentation, and interest rate risk. In April 2024, it entered into a consent order with the FDIC requiring significant operational improvements.
Topics: Black-owned banks FDIC receiver Second Federal Savings and Loan Association of Philadelphia Tioga-Franklin Savings Bank