KBRA Financial Intelligence

First Bank Failure of 2026 is Largest in Almost Two Years

Chicago, Illinois-based Metropolitan Capital Bank & Trust is the first bank to fail this year. Of $261 million in assets, $251 million has been acquired by First Independence Bank (KFI Score: B), based in Detroit, Michigan. As of 3Q 2025, Metropolitan Capital Bank & Trust’s KFI Score was E, correctly identifying that the institution was likely to be in poor financial condition. From 2010 through 2025, 96% of banks that failed had a KFI Score of D or lower prior to the FDIC date of failure.

Call report data collected by KBRA Financial Intelligence shows that nearly 81% of Metropolitan Capital Bank & Trust’s lending was concentrated within the commercial and industrial (C&I) category. In 3Q 2025, it charged-off $13.9 million of its C&I loans, sending the bank’s total net charge-off ratio soaring to 27.34%. Further, the bank’s total deposits had fallen by almost 10% between 1Q 2025–3Q 2025.

The first bank failure of the new year was more than double the combined size of 2025’s two bank failures. Individual banks delinquency rates, charge-offs, and loan compositions can be viewed via KFI’s web app, as well as our Excel add-in’s Loan Category and Delinquency Report template.