This comes amid continued pressure on small banks despite strict regulatory measures. This is in addition to the bank's suffering from a sharp deterioration in its capital position, which required immediate intervention to protect depositors. The bank will be reopened under new management as part of a plan. The decision to close the bank was made by the Illinois Department of Financial and Professional Regulation after assessing the bank's condition, which was described as unsafe and unsound. This marks the first banking failure in the US in 2026 after the Federal Deposit Insurance Corporation (FDIC) announced the closure of Metropolitan Capital Bank & Trust in Illinois.
