Lineage Bank
US · Franklin, Tennessee · FDIC, TN Dept. of Financial Institutions
Lineage Bank is a Bank based in US (Franklin, Tennessee), regulated by FDIC, TN Dept. of Financial Institutions. The institution's BaaS program is currently under regulatory scrutiny, launched in 2020.
Lineage Bank supports the following products and services: Accounts, Payments. The bank serves customers across US.
Notable fintech partners include Synctera, Synapse (former).
- Products Supported
- AccountsPayments
- Geographies Served
- US
- Charter / Regulator
- FDIC, TN Dept. of Financial Institutions
- API Standards
- REST API
- Minimum Deal Size
- Not publicly disclosed
- Year Program Launched
- 2020
Synctera, Synapse (former)
FDIC consent order (Jan 2024) — third-party risk management and fintech partner oversight deficiencies; growth restricted to <10% without FDIC approval; must maintain 12.5% Tier 1 leverage ratio. Also Federal Reserve written agreement (Dec 2024)
WARNING: Under FDIC consent order and Fed written agreement. Was Synapse banking partner.
Rapid growth from $27M to ~$300M assets (2020–2023). Class action lawsuit filed April 2025 over missing Synapse funds.
Class-Action Lawsuit Targets Evolve and Partner Banks Over Synapse Bankruptcy Fallout
A class-action lawsuit was filed against Evolve Bank & Trust, Lineage Bank, AMG National Trust, and American Bank over mishandled customer deposits following Synapse's April 2024 bankruptcy. Customers of fintechs like Yotta and Juno report receiving pennies on the dollar, with up to $95 million in funds reportedly unaccounted for.
FDIC Issues Consent Order Against Thread Bank Over BaaS Oversight Failures
The FDIC issued a consent order against Thread Bank, a BaaS sponsor bank, for inadequate oversight of its fintech partners in embedded finance. The order, issued in May 2024 and made public in July, requires enhanced risk assessments and board-approved thresholds for fintech partnerships. This was part of a broader wave of regulatory actions targeting over 25% of FDIC-supervised BaaS banks in 2024.
Synapse Partners with Lineage Bank to Expand BaaS Platform
Synapse announced a partnership with Lineage Bank, adding the Tennessee-based bank as a sponsor bank on its BaaS platform. Lineage provides FDIC deposit insurance, payment processing, and card issuance to fintechs using Synapse. The deal supports Synapse's multi-bank strategy to help fintechs launch regulated financial products faster.