{"id":194,"date":"2026-10-08T13:48:21","date_gmt":"2026-10-08T13:48:21","guid":{"rendered":"https:\/\/law.petpolicyadvisors.com\/?p=194"},"modified":"2026-10-08T13:48:21","modified_gmt":"2026-10-08T13:48:21","slug":"philly-lender-becomes-fifth-bank-to-fail-in-2026","status":"publish","type":"post","link":"https:\/\/law.petpolicyadvisors.com\/?p=194","title":{"rendered":"Philly lender becomes fifth bank to fail in 2026"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Tioga-Franklin Savings Bank, which had $68 million in assets, was founded in 1873.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Dive Brief:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Philadelphia-based Tioga-Franklin Savings Bank was closed by regulators Friday, and Second Federal Savings and Loan Association of Philadelphia agreed to assume all of the bank\u2019s deposits and substantially all of its assets, said the <a href=\"https:\/\/www.fdic.gov\/news\/press-releases\/2026\/second-federal-savings-and-loan-association-philadelphia-assumes-all\">Federal Deposit Insurance Corp.<\/a>, which acted as receiver.<\/li>\n\n\n\n<li>Single-branch Tioga-Franklin had about $68 million in assets and $67 million in deposits as of June 30, the FDIC said. The bank\u2019s sole location opened Monday as a branch of Second Federal Savings and Loan Association of Philadelphia, and depositors of Tioga-Franklin automatically became depositors at Second Federal.<\/li>\n\n\n\n<li>The FDIC estimates Tioga-Franklin\u2019s failure will cost the Deposit Insurance Fund about $5.5 million, although that estimate is expected to change as retained assets are sold.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Dive Insight:<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Tioga-Franklin is the fifth bank to fail this year. It was founded in 1873, as Tioga Building and Loan Association, according to <a href=\"https:\/\/www.linkedin.com\/company\/tioga-franklin-savings-bank\/about\/\">the bank\u2019s LinkedIn page<\/a>.&nbsp;It was one of about 22 <a href=\"https:\/\/www.esgdive.com\/news\/optus-mf-carolina-black-owned-banks-merge-105-million-mdi-cdfi\/826147\/\">Black-owned banks<\/a> in the U.S., according to a <a href=\"https:\/\/www.forbes.com\/advisor\/banking\/black-owned-banks\/\">Forbes list<\/a> published this year.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The transaction will give single-branch Second Federal about $115 million in assets, the lender said in a notice <a href=\"https:\/\/secondfed.com\/\">on its website<\/a>. Second Federal, which has about <a href=\"https:\/\/cdr.ffiec.gov\/Public\/ViewFacsimileDirect.aspx?ds=call&amp;idType=fdiccert&amp;id=29627&amp;date=03312026\">$43.6 million in assets<\/a>, was established in 1924, and is regulated by the Office of the Comptroller of the Currency.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe are pleased to welcome Tioga-Franklin Savings Bank\u2019s customers and employees to Second Federal,\u201d Second Federal CEO David Rowland said in a statement on the lender\u2019s website. \u201cOur immediate priority is to ensure a smooth transition and continuity of service. We look forward to building strong, long-term relationships with the Tioga-Franklin customers by delivering responsive, service-focused banking.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the deal, Second Federal has acquired Tioga-Franklin\u2019s \u201cmore advanced core processing system,\u201d Rowland said in a statement. \u201cThis will enable Second Federal to offer a more contemporary range of banking services and products to all of its customers.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In April 2024, Tioga-Franklin entered into a <a href=\"https:\/\/orders.fdic.gov\/s\/press-release-orders?prYear=2024&amp;prDate=31&amp;prMonth=5\">consent order with the FDIC<\/a>, after the regulator cited deficiencies in board supervision and direction; management performance; strategic, profit and capital planning; liquidity and funds management; interest rate risk; audit; and credit administration. That followed a 2023 exam that identified weaknesses related to capital, earnings and strategic direction, among other things.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The FDIC consent order also flagged Bank Secrecy Act violations and issues with Tioga-Franklin\u2019s anti-money laundering\/counterterrorism financing program, and nonconformance with regulatory guidelines for bank internal controls and information systems, the bank\u2019s internal audit system, loan documentation, interest rate exposure and asset quality, the agency said.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under the 19-page consent order, the bank\u2019s board was ordered to \u201cimmediately increase\u201d its supervision and direction of bank management and its oversight of the bank\u2019s financial condition and operations.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The bank was also directed to bolster its AML\/CFT program, conduct a three-year look-back review, ensure that the bank\u2019s Office of Foreign Assets Control compliance program was sufficient, and revise its strategic plan to set goals and performance metrics for returning the bank to profitability and boosting capital, among other things.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tioga-Franklin Savings Bank, which had $68 million in assets, was founded in 1873. Dive Brief: Dive Insight: Tioga-Franklin is the fifth bank to fail this year. It was founded in 1873, as Tioga Building and Loan Association, according to the bank\u2019s LinkedIn page.&nbsp;It was one of about 22 Black-owned banks in the U.S., according to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":195,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-194","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-credit"],"_links":{"self":[{"href":"https:\/\/law.petpolicyadvisors.com\/index.php?rest_route=\/wp\/v2\/posts\/194","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/law.petpolicyadvisors.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/law.petpolicyadvisors.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/law.petpolicyadvisors.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/law.petpolicyadvisors.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=194"}],"version-history":[{"count":1,"href":"https:\/\/law.petpolicyadvisors.com\/index.php?rest_route=\/wp\/v2\/posts\/194\/revisions"}],"predecessor-version":[{"id":196,"href":"https:\/\/law.petpolicyadvisors.com\/index.php?rest_route=\/wp\/v2\/posts\/194\/revisions\/196"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/law.petpolicyadvisors.com\/index.php?rest_route=\/wp\/v2\/media\/195"}],"wp:attachment":[{"href":"https:\/\/law.petpolicyadvisors.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=194"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/law.petpolicyadvisors.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=194"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/law.petpolicyadvisors.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=194"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}