Metropolitan Capital Bank & Trust Becomes First U.S. Bank Failure of 2026, Assets Acquired by Detroit-Based First Independence
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CHICAGO — The Illinois Department of Financial and Professional Regulation (IDFPR) shuttered Metropolitan Capital Bank & Trust on Friday, appointing the Federal Deposit Insurance Corp. (FDIC) as receiver in the first U.S. bank failure of 2026. The move underscores lingering vulnerabilities in the regional banking sector following the turbulence of 2023.
The FDIC immediately orchestrated a purchase and assumption agreement with Detroit-based First Independence Bank, a growing minority-owned institution. First Independence will assume substantially all of the failed bank's $212.1 million in deposits and purchase approximately $251 million of its $261.1 million in assets.
"We want to be clear that no depositor will lose any money as a result of this action," stated Susana Soriano, acting director of IDFPR’s Division of Banking. She cited "unsafe and unsound conditions and an impaired capital position" at Metropolitan Capital as the reasons for closure, while affirming that First Independence is "well-positioned to continue essential banking services."
The failure is projected to cost the FDIC's Deposit Insurance Fund an estimated $19.7 million, a figure that may adjust as remaining assets are liquidated. Founded in 2005, Metropolitan Capital had expanded to offer commercial and private banking services to clients across 46 states and 10 countries. Its recent leadership saw changes, with former CEO Michael Rose departing in July 2025 to launch a capital advisory firm.
The acquisition represents a significant expansion for First Independence, which reported assets surpassing $500 million last year and is ranked as the seventh-largest Black-owned bank in the nation. Its CEO, Kenneth Kelly, currently chairs the American Bankers Association.
Industry Context & Analyst Commentary
This failure follows two bank closures in both 2025 and 2024, a marked deceleration from the five failures in 2023—a year that included the historic collapses of Silicon Valley Bank and Signature Bank. Analysts suggest Metropolitan Capital's孤立, single-branch model and potential concentration in commercial real estate or other stressed sectors may have contributed to its capital impairment.
"This is a contained, orderly resolution, not a systemic event," said David Chen, a financial stability analyst at the Brookings Institute. "The FDIC's swift action and the presence of a ready acquirer like First Independence prevented any contagion. It's a testament to the post-2023 playbook working as designed."
However, Maya Rodriguez, a former regulator and now a vocal critic on banking oversight, offered a sharper take: "This is the canary in the coal mine. We're seeing the delayed effects of aggressive rate hikes and commercial real estate decay. Regulators are playing whack-a-mole while the underlying stress in midsize banks is widespread. Calling this 'contained' is naive—it's a symptom of a much larger problem."
Sarah Jenkins, a small business owner and former Metropolitan Capital client, expressed relief: "I was terrified all weekend after getting the notice. But my cards worked, and the branch just reopened under a new name. It's unsettling, but my money is there."
Thomas Wright, a portfolio manager specializing in financial stocks, noted: "The market has largely shrugged this off. First Independence gets a clean asset base at a discount, and the system absorbed the shock. The key takeaway is that the FDIC's resolution mechanism remains robust for small-to-midsize institutions."
Metropolitan Capital's sole branch reopened as a First Independence location on Monday. All customer deposits were automatically transferred, with uninterrupted access via ATMs, debit cards, and checks over the weekend.