The Illinois Department of Financial and Professional Regulation closed the Metropolitan Capital Bank & Trust due to unsafe and unsound conditions.The Illinois Department of Financial and Professional Regulation closed the Metropolitan Capital Bank & Trust due to unsafe and unsound conditions.

Illinois shuts down Metropolitan Capital Bank & Trust in first U.S. bank failure of 2026

The Illinois Department of Financial and Professional Regulation (IDFPR) closed Chicago’s Metropolitan Capital Bank & Trust on Friday due to unsafe and unsound conditions and an impaired capital position. The bank is the first U.S. financial institution to fail this year.

The department appointed the Federal Insurance Corporation (FDIC) as the bank’s receiver. The FDIC also initiated a Purchase and Assumption Agreement with the First Independence Bank on Friday. 

FDIC assumes all Metropolitan Capital Bank & Trust deposits

The initiative helps the agency assume all deposits of Metropolitan Capital Bank & Trust. The First Independence Bank, Detroit, MI, will assume all deposit accounts except those from Cede & Co.

The Metropolitan Capital Bank & Trust is expected to reopen its main office as a branch of First Independence Bank during Monday’s normal business hours. Depositors at the Chicago-based bank will automatically become depositors of First Independence Bank starting next week. 

The FDIC also confirmed that it will continue to insure all deposits assumed by the bank. The agency added that Metropolitan Capital Bank & Trust customers will still have immediate access to their deposits after the change. 

Mario Treto, Jr., Secretary of IDFPR, acknowledged that the department’s mission is to safeguard the soundness of Illinois’ state-chartered financial institutions. He also revealed that protecting depositors and maintaining a safe and sound banking system remains the department’s priority.

Customers will retain the same routing and account numbers until they are notified in writing by First Independence Bank. Customers will also have access to their safe deposit boxes during normal business hours.

The FDIC revealed that customers of the failed bank in Illinois can still access their deposits by writing checks or using ATM or debit cards. The Metropolitan Capital Bank & Trust will also continue processing paychecks and social security benefits.

The FDIC urged loan customers to continue making their payments as usual, including escrow payments, despite the bank’s closure. The terms of the customers’ loans will also not change. 

Customers who have a loan in process or have had a line of credit are urged to contact their loan officer. Customers who make escrow payments and receive notification that any portion of their taxes or insurance was not paid are also encouraged to visit the FDIC Information and Support Center for help.

The government agency disclosed that customers with queries can contact the FDIC toll-free at 1-866-314-1744 or visit the agency’s website. The FDIC said the phone number will be operational from Monday, 9:00 a.m. to 5:00 p.m. CT.

First Independence Bank purchases $251M of Metropolitan Capital Bank & Trust’s assets

The initiative comes as the Metropolitan Capital Bank & Trust reported on September 30 that its total assets reached $261.1 million and total deposits of $212.1 million. The First Independence Bank agreed to purchase approximately $251 million in assets from the failed bank.

The FDIC revealed that it will retain the remaining assets for later disposition. The agency also estimates that Metropolitan Capital Bank & Trust’s failure will cost the Deposit Insurance Fund (DIF) approximately $19.7 million, a figure expected to change over time as retained assets are sold.

The FDIC disclosed that customers can file a claim against Metropolitan Capital Bank & Trust if they have not been paid for services rendered on or before January 30, 2026. First Independence Bank will also be responsible for mailing customers 1099 tax information, while the FDIC does its 1098 reporting.

Metropolitan Capital Bank & Trust confirmed that its shares are owned by its holding company, Metropolitan Capital Bankcorp, Inc., Chicago, IL. The IDFPR did not include the holding company in the bank’s closure or the resulting receivership.

The smartest crypto minds already read our newsletter. Want in? Join them.

Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Fed Decides On Interest Rates Today—Here’s What To Watch For

Fed Decides On Interest Rates Today—Here’s What To Watch For

The post Fed Decides On Interest Rates Today—Here’s What To Watch For appeared on BitcoinEthereumNews.com. Topline The Federal Reserve on Wednesday will conclude a two-day policymaking meeting and release a decision on whether to lower interest rates—following months of pressure and criticism from President Donald Trump—and potentially signal whether additional cuts are on the way. President Donald Trump has urged the central bank to “CUT INTEREST RATES, NOW, AND BIGGER” than they might plan to. Getty Images Key Facts The central bank is poised to cut interest rates by at least a quarter-point, down from the 4.25% to 4.5% range where they have been held since December to between 4% and 4.25%, as Wall Street has placed 100% odds of a rate cut, according to CME’s FedWatch, with higher odds (94%) on a quarter-point cut than a half-point (6%) reduction. Fed governors Christopher Waller and Michelle Bowman, both Trump appointees, voted in July for a quarter-point reduction to rates, and they may dissent again in favor of a large cut alongside Stephen Miran, Trump’s Council of Economic Advisers’ chair, who was sworn in at the meeting’s start on Tuesday. It’s unclear whether other policymakers, including Kansas City Fed President Jeffrey Schmid and St. Louis Fed President Alberto Musalem, will favor larger cuts or opt for no reduction. Fed Chair Jerome Powell said in his Jackson Hole, Wyoming, address last month the central bank would likely consider a looser monetary policy, noting the “shifting balance of risks” on the U.S. economy “may warrant adjusting our policy stance.” David Mericle, an economist for Goldman Sachs, wrote in a note the “key question” for the Fed’s meeting is whether policymakers signal “this is likely the first in a series of consecutive cuts” as the central bank is anticipated to “acknowledge the softening in the labor market,” though they may not “nod to an October cut.” Mericle said he…
Share
BitcoinEthereumNews2025/09/18 00:23
Will XRP Price Increase In September 2025?

Will XRP Price Increase In September 2025?

Ripple XRP is a cryptocurrency that primarily focuses on building a decentralised payments network to facilitate low-cost and cross-border transactions. It’s a native digital currency of the Ripple network, which works as a blockchain called the XRP Ledger (XRPL). It utilised a shared, distributed ledger to track account balances and transactions. What Do XRP Charts Reveal? […]
Share
Tronweekly2025/09/18 00:00
GD Culture to Acquire Pallas Capital Assets, Adding 7,500 Bitcoin to Treasury

GD Culture to Acquire Pallas Capital Assets, Adding 7,500 Bitcoin to Treasury

The post GD Culture to Acquire Pallas Capital Assets, Adding 7,500 Bitcoin to Treasury appeared on BitcoinEthereumNews.com. GD Culture Group has entered a share‑exchange agreement to acquire Pallas Capital’s assets, including 7,500 BTC, to accelerate its crypto‑treasury strategy. Pallas Capital Acquisition Boosts GD Culture’s Treasury Strategy GD Culture Group Limited (Nasdaq: GDC) has announced a landmark deal to acquire Pallas Capital Holding Ltd., adding 7,500 bitcoin to its balance sheet as part […] Source: https://news.bitcoin.com/gd-culture-to-acquire-pallas-capital-assets-adding-7500-bitcoin-to-treasury/
Share
BitcoinEthereumNews2025/09/18 13:51