Chicago’s Metropolitan Capital Bank Collapse Marks First US Bank Failure of 2026
Regulators shuttered Chicago-based Metropolitan Capital Bank & Trust on Friday, appointing the FDIC as receiver in the first U.S. bank failure of 2026. The single-branch lender’s collapse follows a period of relative stability in the banking sector, with few failures recorded in 2025.
First Independence Bank will acquire $251 million of the failed institution’s assets, while the FDIC estimates a $19.7 million hit to its Deposit Insurance Fund. Customers retain immediate access to funds and must continue loan payments uninterrupted.
The closure underscores lingering vulnerabilities in regional banking despite broader sector resilience. ‘Unsafe conditions and weak capital’ prompted Illinois regulators to act, echoing concerns that emerged during 2023’s regional banking crisis.
