A Philadelphia savings bank with one branch and $68m of assets failed on Friday, and the insurance fund expects to lose $5.5m on it
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A Philadelphia savings bank failed on Friday.
Tioga-Franklin Savings Bank was closed by the Pennsylvania Department of Banking and Securities, which appointed the Federal Deposit Insurance Corporation as receiver. The FDIC then agreed with Second Federal Savings and Loan Association of Philadelphia that Second Federal would assume all of Tioga-Franklin's deposits and purchase substantially all of its assets, which is the arrangement that lets a bank close on a Friday and open under a new name on the Monday without a depositor missing a payment or filling in a form. Tioga-Franklin reported total assets of $68m and total deposits of $67m as of 30 June. Its sole branch reopened as a branch of Second Federal on 24 August.
The cost
The FDIC preliminarily estimates the failure will cost the Deposit Insurance Fund about $5.5m, and says in the same sentence that the estimate will change over time as retained assets are sold. Against the $67m of deposits the fund stood behind, that is a little over eight percent. The percentage is this desk's arithmetic. The FDIC publishes no such ratio.
Five this year, two last year
Tioga-Franklin is the fifth insured institution on the FDIC's failed bank list with a closing date in 2026, and it is the second in six weeks. Kentland Federal Savings and Loan Association in Indiana closed on 10 July and Small Business Bank of Lenexa, Kansas on 17 July. Before those, Community Bank and Trust West Georgia at LaGrange closed on 1 May and Metropolitan Capital Bank and Trust of Chicago on 30 January. The same list carries two closings dated in 2025.
None of those documents gives a reason. The FDIC's release does not say why Tioga-Franklin failed, the Pennsylvania order is not reproduced in it, and no supervisory record was retrieved here, so this brief says nothing about the bank's lending, its capital or its examiners.
The closing reached the Federal Register on Thursday, six days after the fact, in a one-line table at 91 FR 55345 giving reference number 10554 and a date closed of 21 August. This desk had not covered the failure when it happened. It runs now because a $68m bank going down is still the news it was on Friday, and because the receivership list is the record readers will be pointed at for years.
