On January 30, the Illinois Department of Financial and Professional Regulation announced that, in coordination with the FDIC, it had taken possession of a state-chartered bank in Chicago due to purportedly unsafe and unsound conditions and an impaired capital position. According to the FDIC’s press release, the agency entered into an agreement to transfer substantially all deposits to a Detroit-based minority depository institution. The agencies stated that the transition was immediate, with the affected bank’s sole office scheduled to reopen under new management during regular business hours on February 2. At the time of closure, the institution reported approximately $261 million in assets and $212 million in deposits. The FDIC estimated the cost to the Deposit Insurance Fund at $19.7 million, subject to change as the assets retained are sold. The FDIC stated the closure marked the first bank failure in the U.S. in 2026.
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