The Federal Deposit Insurance Bureau (FDIC) today announced the closure of Metropolitan Capital Bank & Trust ($212 million in deposits), the first bank in the United States to experience bank bankruptcy in 2026, as determined by the Illinois Department of Financial and Professional Regulation.
Protection of customer deposits
According to a report from CNBC, Detroit-based First Independence Bank has entered into an agreement to take over nearly all of Metropolitan Bank’s deposits under a buy-and-take agreement, ensuring full protection of customer deposits and uninterrupted banking services.
The bank’s only branch in Chicago will reopen as a First Independence Bank branch next Monday, February 2, 2026.
Deterioration of financial situation
“The closure was due to unsafe operating conditions and a deteriorating capital position for the bank, which had approximately $261.1 million in assets at the time of closure,” the Illinois Department of Financial Regulation said in a statement.
The FDIC originally estimated that the bank bankruptcy would cost the Deposit Insurance Fund approximately $19.7 million, but assumed that the disposition of remaining assets would change this estimate.
The event marks the first bank bankruptcy in the U.S. since early 2026, a measure closely watched by market and banking sector observers.
Following a decision by the Illinois Department of Financial and Professional Regulation, the Federal Deposit Insurance Corporation (FDIC) today announced the closure of Metropolitan Capital Bank & Trust, making it the first bank in the United States to fail in 2026 with $212 million in deposits.
Customer deposit protection
Under the acquisition and underwriting agreement, Detroit-based First Independence Bank will take over substantially all of Metropolitan Bank’s deposits, fully protecting customer deposits and ensuring uninterrupted banking services, according to CNBC.
The bank’s only branch in Chicago will reopen as a First Independence Bank branch next Monday, February 2, 2026.
Deterioration of financial situation
“The closure was due to unsafe operating conditions and a deteriorating capital position for the bank, which had approximately $261.1 million in assets at the time of closure,” the Illinois Department of Financial Regulation said in a statement.
The FDIC initially estimated that the bank’s failure would cost the Deposit Insurance Fund approximately $19.7 million, but those estimates are subject to change as remaining assets are liquidated.
The event marks the first bank failure in the United States since early 2026, and developments are being closely monitored by markets and banking sector regulators.
