TLDR
- FDIC takes control of Metropolitan Capital Bank after its closure in 2026.
- First Independence Bank will acquire $251 million in assets from the failed bank.
- The FDIC expects a $19.7 million cost to its Deposit Insurance Fund.
- Customers can access funds immediately and continue loan payments after the closure.
Metropolitan Capital Bank & Trust, a single-branch financial institution based in Chicago, has officially become the first U.S. bank failure of 2026. Regulatory authorities took decisive action on Friday, closing the bank and appointing the Federal Deposit Insurance Corporation (FDIC) as the receiver. This event is significant as it marks a departure from the relatively stable banking landscape observed in 2025, where few banks faced ruin.
BREAKING: FIRST US BANK FAILURE OF 2026!
Chicago’s Metropolitan Capital Bank & Trust CLOSED by Illinois regulators due to unsafe conditions and weak capital cited. pic.twitter.com/LnreyxGljv
— Ash Crypto (@AshCrypto) January 31, 2026
The FDIC has estimated that the bank’s collapse will cost approximately $19.7 million to its Deposit Insurance Fund. To manage the aftermath, the FDIC announced it would oversee the remaining assets of Metropolitan Capital Bank. In a swift operation, First Independence Bank has stepped up to absorb most of the failed institution’s operations.
First Independence Bank Takes Over
In a bid to stabilize the situation, First Independence Bank has agreed to acquire around $251 million in assets from Metropolitan Capital Bank as part of its recovery efforts. This acquisition includes responsibility for nearly all deposits, ensuring that customers’ funds remain protected under FDIC insurance.
Former clients of Metropolitan Capital Bank can access their funds immediately through various services, including checks, debit cards, and ATMs. Moreover, they can continue to make their loan payments without any disruption. The FDIC’s rapid intervention has played a crucial role in preserving banking services for affected customers.
FDIC Ensures Customers’ Security
Following the closure, the FDIC reassured customers that their deposits are fully safeguarded. Insurance covers all accounts up to the established limit, and the agency confirmed that clients of Metropolitan Capital Bank can access their funds without delays. Services such as ATM access and online banking will persist, providing continued utility to former clients.
Customers will also maintain their usual methods for making loan payments. The FDIC’s careful management of the transition ensures there will be no interruptions to accounts while moving to First Independence Bank.
New Beginnings for Former Metropolitan Capital Bank Branch
Effective February 2, the former Metropolitan Capital Bank branch in Chicago will reopen under the First Independence Bank name. This rebranding is part of a broader strategy to integrate the operations of the failed bank into the acquiring institution.
With minimal disruption to services, First Independence Bank is set to continue operations from the same location, allowing customers to visit the branch comfortably. The transition promises to fully incorporate the bank’s assets, deposits, and clientele into First Independence Bank’s fold, ensuring stability and security within the local banking framework.
