Bank Failure Alert - Metropolitan Capital Bank & Trust

The first bank failure of 2026...

​Summary:
On 1/30/26, the Illinois Department of Financial and Professional Regulation closed Metropolitan Capital Bank & Trust in Chicago, IL (FDIC 57488; total assets $261.1M; total deposits of $212.1M) and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.  First Independence Bank (FDIC 20179; total assets $697M as of the 12/31/25 Call Report) agreed to assume substantially all deposits of Metropolitan Capital Bank & Trust. It will also purchase approximately $251 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition. 

• The FDIC preliminarily estimates that the failure will cost its Deposit Insurance Fund (DIF) about $19.7 million.
• Source - First Independence Bank, Detroit, Michigan, Assumes All Deposits of Metropolitan Capital Bank & Trust, Chicago, Illinois | FDIC.gov

 
 
Additional FedFis insights as of the 9/30/25 call report:

• Metropolitan Capital Bank & Trust had a FedFis Rating© of 4.76 placing them in the lowest percentile of all banks.  The bank has struggled with Asset Quality and Profitability issues in the last couple of years that has strained the banks’ capital position.
• The bank loan portfolio is comprised mainly of C&I loans (80.93%).  The bank recorded significant Net Charge-offs of $12.5M related to C&I loans in the Sept 2025 quarter resulting in a Net Loss YTD of ($10.8M).  The bank had another $4.5M in nonperforming loans (about $4.3 of which is also C&I). 
  • The bank had an Allowance for LLL balance of $3.4M – not enough to cover the nonperforming (past due loans / loan loss allowance of 131.71%).
• Metropolitan Capital Bank & Trust had $4.2M in tangible equity capital at 9/30/25 with a YTD Adjusted Texas Ratio of 76.58% (was 172.11% in Jun 2025 prior to the charge-off).
• Compounding the asset quality issues is duration and yield on the AFS Securities portfolio of $52.5M – of which, 49% is 5 – 15 years and another 41% is 15 years + in duration.  Total Yield on Securities is only 1.7% resulting in a negative AOCI on the Balance Sheet of ($9M).  Total loans / Deposits ratio of 68.61%.
  • All securities were pledged with Other Borrowed Money (FHLB borrowing) of $43M.
• Total deposits of $212.1M included $44.4M in brokered deposits.

 
 
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Sean Mayo
Sr. VP, US Financial Institutions Group
[email protected]