Pulaski Savings Bank, a $49.5 million asset Chicago-based community bank, was shut down Friday by the Illinois Department of Financial and Professional Regulation.
The Federal Deposit Insurance Corp. was appointed as the receiver and all the banks' $42.7 million in deposits were assumed by nearby Millennium Bank of Des Plaines, Illinois.
"Millennium Bank agreed to assume all deposits at the time of closing for a 4.61 percent premium. It will also purchase approximately $45.0 million of the failed bank's assets," an agency release noted. "The FDIC will retain the remaining assets for later disposition."
Pulaski Savings Bank — which has one location — will reopen as a branch of Millennium Bank on Saturday during regular business hours.
Depositors of the failed bank will automatically become depositors of Millennium Bank and don't have to take any action to have access to their accounts, according to the FDIC.
The closure of Pulaski Savings Bank and the transfer of its deposits to Millennium Bank mark the first bank failure of 2025 .
Before Friday's failure, First National Bank of Lindsay, in Lindsay, Okla. in October 2024 was the last time the agency wound down an FDIC-insured bank.
The Office of the Comptroller of the Currency closed the First National Bank of Lindsay due to what the regulator said were false and deceptive bank records suggesting fraud, which depleted the bank's capital reserves.
While First National's failure was estimated to cost the DIF $43 million, the agency predicted Pulaski's failure will cost slightly less.
"The FDIC preliminarily estimates that the failure will cost its Deposit Insurance Fund (DIF) about $28.5 million," the FDIC said in a release. "The estimate will change over time as assets are sold. Suspected fraud caused the higher estimated cost to the DIF."
