Chicago, January 31, 2026, 04:41 CST
- Illinois regulators closed the lender on Jan. 30 and named the Federal Deposit Insurance Corporation as receiver.
- The FDIC revealed that First Independence Bank will assume nearly all deposits and acquire about $251 million in assets.
- The FDIC estimated the hit to its Deposit Insurance Fund at about $19.7 million.
On Friday, U.S. regulators closed Metropolitan Capital Bank & Trust, placing it under the FDIC’s control to oversee its wind-down. First Independence Bank acquired most of the failed bank’s assets and deposits. According to the FDIC, the lender had $261.1 million in assets and $212.1 million in deposits as of Sept. 30.
This is the first U.S. bank failure in 2026, following two smaller collapses in 2025. It serves as a sharp reminder that quiet stretches in the banking sector can end abruptly. The FDIC’s failed-bank list shows that the earlier incidents involved significantly smaller banks.
This matters because each failure draws from the Deposit Insurance Fund — the industry-supported reserve that covers insured deposits after a bank folds — while regulators try to prevent panic among customers at other banks. The FDIC put the cost at about $19.7 million but cautioned that figure might change as assets are liquidated.
First Independence will assume nearly all deposits and take on around $251 million in assets in a purchase-and-assumption deal, the FDIC announced—routine when a bank takes over deposits and selected assets from a failed institution. The failed bank’s sole branch is scheduled to reopen as a First Independence location on Monday, Feb. 2, the agency added.
The FDIC has confirmed that depositors will have immediate access to their funds, with checks, ATMs, and debit cards remaining operational throughout the weekend. It emphasized that financial institution closures occur without any prior public notice.
The FDIC confirmed in a customer FAQ that no depositor lost funds after the closure, noting that nearly all deposits were transferred regardless of amount. It also warned customers to watch out for scams, emphasizing it will never ask for private information to “verify” accounts. FDIC
Deposit terms might shift. The FDIC confirmed interest accrued through Jan. 30 will be paid at existing rates. First Independence intends to review deposit rates and will notify customers of any changes. Customers can withdraw funds without penalty until they agree to a new deposit contract.
Q3 2025 data showed a narrow margin: about $261 million in assets against $257 million in liabilities, yielding a 1.62% net equity capital ratio, per American Banker. The bank also reported $43 million borrowed from the Federal Home Loan Bank system, a key short-term funding lifeline for many lenders.
Travis Hill’s swift move to offload failed banks aims to curb value loss, the report said. It called out the slow sale process after Silicon Valley Bank’s 2023 collapse. Hill described the situation as “a very undesirable place to be as value seeps out” during a 2023 panel, according to American Banker. American Banker
Metropolitan is bigger than the banks that folded in 2025, including Pulaski Savings Bank and The Santa Anna National Bank in Texas, American Banker reports. Pulaski’s collapse in January cost the insurance fund $28.5 million — about 58% of its assets, the publication noted.
The shutdown didn’t just stay within banking circles. Crypto site Coinfomania flagged it as the first U.S. bank failure of 2026, sparking a viral buzz online.
The $19.7 million price tag remains a preliminary figure, with the final total depending on how much the FDIC recovers from assets it kept to sell later. Customers could see shifts in rates and terms as well. The agency also cautioned that current First Independence account holders should review their insurance coverage once the six-month separate-insurance period ends.
The FDIC clarified that the bank’s shares are owned by holding company Metropolitan Capital Bancorp, Inc., which hasn’t been placed into receivership. Creditors seeking repayment need to file claims with the receiver, the FDIC said.
