Fifth bank failure of 2026…
On 8/21/26, Tioga-Franklin Savings Bank in Philadelphia (FDIC 33802; total assets $68M; total deposits $67M) was closed by the Pennsylvania Department of Banking and Securities, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. Second Federal Savings and Loan Association of Philadelphia (FDIC 29627; total assets $46M), to assume all deposits and purchase substantially all assets of Tioga-Franklin Savings Bank.
- The FDIC preliminarily estimates that the failure will cost the Deposit Insurance Fund approximately $5.5 million.
- Source – Second Federal Savings and Loan Association of Philadelphia Assumes All Deposits of Tioga-Franklin Savings Bank, Philadelphia | FDIC.gov and Pennsylvania Department of Banking and Securities Takes Possession of Tioga-Franklin Savings Bank | PA DoBS
Additional FedFis insights as of the 6/30/26 call report:
- Tioga-Franklin Savings Bank had a FedFis Rating© of 4.72 as of June 2026 placing them in the lowest possible percentile of all US banks. The bank had experienced continued operating losses for several years as well as material asset quality issues (with non-sufficient reserves in relation to nonperforming loans) resulting in a significantly strained capital position.
- The bank’s $57M loan portfolio consisted primarily of $20M (35.73%) 1-4 Family; $18M (31.76%) Nonfarm Nonresidential; and $13.7M (24.05%) Domestic C&I with significant nonperforming spread across all categories.
- Total nonperforming loans (90 days or more past due and still accruing plus nonaccrual) of $5.2M versus an allowance for credit losses of only $718K coupled with an equity position of only $1.4M and an Adjusted Texas Ratio of 158.35%.
- YTD ROAA was negative (3.32%), ROAE was negative (92.50%), and an efficiency ratio of 188.70%.
For more information on FedFis Bank Ratings and market insights, contact the FedFis Sales Team at 512-960-0911 | info@fedfis.com.
Sean Mayo
Sr. VP, US Financial Institutions Group
smayo@fedfis.com
