The Office of Inspector General of the Federal Deposit Insurance Corporation issued its report on the Failed Bank Review -- Tioga-Franklin Savings Bank, Philadelphia, PA.
On August 21, 2026, the Commonwealth of Pennsylvania Department of Banking and Securities, Bureau of Bank Supervision (DoBS), took possession and control of Tioga-Franklin and appointed the FDIC as the receiver. The bank had no holding company and operated from a single location in Philadelphia. The bank focused on residential mortgages and small business loans.
According to the FDIC, the estimated loss to the Deposit Insurance Fund (DIF) was $5,445,000 or approximately 8 percent of the bank’s $66,849,160 total assets. Following a period of supervisory actions by regulators, the DoBS took possession of Tioga-Franklin because it experienced an extended period of structural unprofitability which ultimately eroded Tioga-Franklin’s capital position.
We conducted a failed bank review to determine whether unusual circumstances existed that warranted further review.
We determined that Tioga-Franklin’s failure occurred due to the continued decline in earnings, caused by high overhead expenses from expanding its mortgage banking division, resulting in the deterioration of the bank’s capital. While the bank attempted to resolve its liquidity and capitalization issues by securing new investors, it was unable to find new investors to stabilize its finances.
We analyzed three factors to determine whether unusual circumstances warranted further review:
- We found that the loss to the DIF in relation to Tioga-Franklin’s total assets was approximately 8 percent, which was smaller than the average losses to the DIF of other failures within the last 5 years (20 percent). Therefore, we did not find this loss to be of sufficient magnitude or significance to warrant an in-depth review.
- We found that the FDIC’s supervision overall identified and effectively addressed the issues that led to the bank’s failure or the loss to the DIF. Since 2022, the FDIC’s supervision identified several concerns at Tioga-Franklin, and the FDIC took several formal and informal actions intended to resolve the issues in a timely manner.
- We did not identify other relevant conditions or circumstances that significantly contributed to the bank’s failure or the loss to the DIF.
Our review did not find unusual circumstances that would warrant an in-depth review of the loss.