Metropolitan Capital Bank & Trust in Chicago, Illinois, was closed on January 30, 2026, by the Illinois Department of Financial and Professional Regulation due to unsafe financial conditions and weakened capital levels. The regulator appointed the Federal Deposit Insurance Corporation as receiver to manage the bank’s resolution.
The FDIC immediately arranged a purchase and assumption agreement with First Independence Bank of Detroit, Michigan. Under this agreement, First Independence Bank is assuming substantially all deposits of the failed bank, ensuring customers maintain full access to their funds.
What Happens to Customers Now?
Depositors do not need to take any action. Accounts automatically transfer to First Independence Bank, and all deposits remain insured by the FDIC within legal limits. Customers can continue using checks, ATMs, and debit cards without interruption. Loan customers should keep making payments as usual.
The Chicago branch will reopen as a First Independence Bank branch during normal business hours on Monday, February 2, 2026.
Key Financial Details
- Total assets at closure were approximately $261.1 million
- Total deposits stood at around $212.1 million
- First Independence Bank agreed to purchase about $251 million in assets
- The FDIC will retain remaining assets for future sale
- The estimated cost to the FDIC’s Deposit Insurance Fund is $19.7 million
Why Was the Bank Closed?
Regulators stated the closure was necessary due to unsafe and unsound banking practices and an impaired capital position. Officials emphasized the action was taken to protect depositors and maintain stability in Illinois’ banking system.
Authorities confirmed that no depositor will lose money as a result of the closure.
Is This a Major Banking Crisis?
No. This is an isolated bank failure. The FDIC routinely resolves such cases through structured transfers to healthy institutions. Metropolitan Capital Bank & Trust is the first U.S. bank failure recorded this year.
About the Banks
Metropolitan Capital Bank & Trust opened in 2005 and operated a single office in Chicago. First Independence Bank, based in Detroit, is a minority depository institution and will continue full banking services for transferred customers.
Frequently Asked Questions
Will customers lose money?
No. All insured deposits remain fully protected by the FDIC.
Do customers need to open new accounts?
No. Accounts automatically transfer.
Can customers still use debit cards and checks?
Yes. Banking services continue without disruption.
Should loan payments stop?
No. Borrowers must continue payments as agreed.
Summary
Regulators closed Metropolitan Capital Bank & Trust to prevent further financial risk. The FDIC quickly transferred deposits to First Independence Bank, ensuring uninterrupted banking services and full depositor protection.
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