TLDR:
- Metropolitan Capital Bank & Trust closed by Illinois regulators due to unsafe conditions and weak capital reserves.
- First Independence Bank assumes $212 million in deposits and purchases $251 million of failed bank’s total assets.
- FDIC Deposit Insurance Fund faces preliminary estimated losses of approximately $19.7 million from the resolution.
- Customers maintain full access to deposits with automatic transfer and continued federal insurance protection.
Illinois regulators closed Metropolitan Capital Bank & Trust on January 31, 2026, marking the first bank failure in the United States this year.
The Federal Deposit Insurance Corporation assumed receivership after identifying unsafe operating conditions and insufficient capital reserves.
First Independence Bank of Detroit acquired all deposits, ensuring customers maintain uninterrupted access to their funds.
Regulatory Action and Asset Transfer Details
The Illinois Department of Financial and Professional Regulation ordered the closure following concerns about the institution’s financial stability.
The FDIC immediately entered a purchase and assumption agreement with First Independence Bank to protect depositors.
“Metropolitan Capital Bank & Trust was closed today by the Illinois Department of Financial and Professional Regulation, which appointed the Federal Deposit Insurance Corporation as receiver,” the FDIC stated in its official announcement.
Metropolitan Capital Bank & Trust operated a single office in Chicago with total assets of $261.1 million as of September 30, 2025. First Independence Bank agreed to assume deposits totaling $212.1 million at closing.
The acquiring institution purchased approximately $251 million of the failed bank’s assets. The FDIC retained remaining assets for future disposition through standard resolution procedures.
The Deposit Insurance Fund faces preliminary estimated losses of $19.7 million from this resolution. “The FDIC preliminarily estimates that the failure will cost its Deposit Insurance Fund about $19.7 million,” according to the agency’s release.
The estimate will change over time as retained assets undergo liquidation. Metropolitan Capital Bank & Trust’s branch will reopen Monday, February 2, 2026, under First Independence Bank ownership during regular business hours.
Depositors received automatic transfer to First Independence Bank without requiring action on their part. Federal insurance coverage continues without interruption for all transferred accounts.
“Depositors of Metropolitan Capital Bank & Trust will automatically become depositors of First Independence Bank,” the FDIC confirmed. Customers can access funds immediately through checks, ATM withdrawals, and debit card transactions throughout the weekend transition period.
Customer Impact and Transition Process
Account holders need not change banking relationships or visit branch locations during the transition. “The deposits assumed by First Independence Bank will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship,” regulators assured.
All deposit insurance protections remain in effect under FDIC guarantees. Customers can continue using existing checks, which will process normally through the new institution.
Loan obligations persist unchanged, with borrowers directed to maintain regular payment schedules. “Loan customers should continue to make their payments as usual,” the FDIC instructed.
The agency established dedicated customer support through a toll-free helpline at 1-866-314-1744. Service hours vary throughout the weekend and extend into weekday operations.
Saturday support runs from 9:00 a.m. to 6:00 p.m. Central Time. Sunday assistance operates from noon to 6:00 p.m., with extended Monday hours from 8:00 a.m. to 8:00 p.m.
Banking services resume without disruption as First Independence Bank assumes control of operations. The acquiring institution brings established infrastructure to support existing customer relationships.
This closure represents the banking sector’s first resolution event of 2026. “Metropolitan Capital Bank & Trust is the first bank to fail in the nation this year,” the FDIC noted.
The swift regulatory response and seamless asset transfer demonstrate existing bank failure management frameworks. Customers face minimal disruption despite the underlying institution’s capital weaknesses.
Federal insurance protections fulfilled their intended purpose of maintaining financial system stability during institutional failures.
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Source: https://blockonomi.com/metropolitan-capital-bank-failure-marks-first-u-s-banking-collapse-of-2026/