Chicago bank closure marks first US failure of 2026

Chicago's Metropolitan Capital Bank & Trust was closed by regulators for unsafe conditions. Deposits were transferred to First Independence Bank, with full FDIC insurance maintained.

Chicago's Metropolitan Capital Bank & Trust was closed by Illinois regulators on January 31, 2026, marking the first U.S. bank failure of the year. The closure was due to unsafe and unsound conditions, as well as an impaired capital position. The Federal Deposit Insurance Corporation (FDIC) was appointed as receiver and arranged for First Independence Bank to assume nearly all deposits and certain assets. Customers will automatically become depositors of First Independence Bank, maintaining uninterrupted access to their funds, which remain fully insured by the FDIC. Metropolitan Capital Bank & Trust held about $260 million in assets, with the FDIC estimating preliminary losses of $19.7 million to its Deposit Insurance Fund. The event has drawn attention to banking sector stability, though regulators stress the risk is isolated and markets have avoided panic selling.