Chicago bank first to fail in 2026

Core Insights - Metropolitan Capital Bank & Trust failed on Friday, marking the first bank failure of 2026, as announced by the Illinois Department of Financial and Professional Regulation [1] - First Independence Bank has agreed to assume nearly all of Metropolitan Capital's deposits and a significant portion of its assets, ensuring that no depositors will incur losses [2] - The closure was attributed to unsafe conditions and an impaired capital position, with First Independence Bank positioned to continue essential services for the affected customers [3] Company Overview - Metropolitan Capital was established in 2005 and offered a range of services including commercial banking, investment banking, private banking, and wealth consulting to small- to medium-sized businesses across 46 states and 10 countries [5] - The bank's leadership included CEO Frank Novel and former CEO Michael Rose, who left in July to start a capital advisory firm [4] Acquirer Profile - First Independence Bank, based in Detroit, is noted as the seventh-largest Black-owned bank in the U.S., with assets increasing from over $200 million in 2020 to more than $500 million last year [6] - Kenneth Kelly, the CEO of First Independence, was appointed chair of the American Bankers Association in October [6] Historical Context - The failure of Metropolitan Capital is part of a broader trend, with previous years seeing multiple bank failures, including five in 2023 and two in both 2024 and 2025 [7]