Metropolitan Capital Bank Fails, First U.S. Bank Collapse of 2026

Metropolitan Capital Bank & Trust, a Chicago-based universal bank focused on small- to medium-sized businesses, was closed on February 2, 2026, by Illinois regulators due to “unsafe and unsound conditions” and insufficient capital. The FDIC was named receiver and struck a deal with Detroit’s First Independence Bank, which assumed substantially all $212 million in deposits and purchased $251 million of the failed bank’s $261 million in assets. The FDIC estimates the failure will cost its Deposit Insurance Fund $19.7 million, though the final tally depends on the sale of retained assets. No depositors will lose funds, regulators confirmed. This marks the first U.S. bank failure of 2026 and the second consecutive year a Chicago bank held that distinction, following Pulaski Savings Bank’s collapse in January 2025.