US Bank With $68 Mln in Assets Shut Down in Philadelphia

August 24, 2026
By Mintesinot Nigussie

Tioga-Franklin Savings Bank in Philadelphia was closed by Pennsylvania regulators on August 21, with the Federal Deposit Insurance Corporation appointed as receiver in the latest US bank failure.

The Pennsylvania Department of Banking and Securities closed the bank and the FDIC entered into an agreement with Second Federal Savings and Loan Association of Philadelphia to assume all deposits and purchase substantially all of Tioga-Franklin Savings Bank’s assets.

The failed bank reported 68 million US dollars in assets and 67 million US dollars in deposits as of June 30, according to the FDIC.

Tioga-Franklin Savings Bank’s sole branch is scheduled to reopen as a branch of Second Federal Savings and Loan Association on Monday, August 24. Customers will automatically become depositors of the acquiring bank, with their deposits continuing to be insured by the FDIC.

The FDIC said customers would have immediate access to their deposits. Checks drawn on the failed bank will continue to be processed, while customers can also access funds through ATMs and debit cards. Borrowers are expected to continue making loan payments according to existing arrangements.

The FDIC estimates that the bank’s failure will cost the Deposit Insurance Fund about 5.5 million US dollars. The final cost could change as the FDIC sells assets retained from the failed institution.

Tioga-Franklin Savings Bank’s closure adds to the list of US banks that have failed in 2026, although the institution was small by US banking-industry standards.

The FDIC has directed customers with questions about the closure to contact its customer service centre or consult information on the agency’s website.

Source: FSX Business News