From staff reports WASHINGTON, D.C. — Pulaski Savings Bank of Chicago, Illinois, was closed recently by the Illinois Department of Financial and Professional Regulation, which appointed the Federal Deposit Insurance Corp. (FDIC) as receiver. Suspected fraud was cited as the cause.
To protect depositors, the FDIC entered into a purchase and assumption agreement with Millennium Bank of Des Plaines, Illinois, to assume all deposits of Pulaski Savings Bank.
Pulaski Savings Bank was the first bank in the U.S. to fail this year. The last bank failure was The First National Bank of Lindsay, Oklahoma, on Oct. 18, 2024.
As of Sept. 30, 2024, Pulaski Savings Bank reported total assets of $49.5 million and total deposits of $42.7 million. Millennium Bank agreed to assume all deposits at the time of closing for a 4.61% premium. It also will purchase approximately $45 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
The FDIC’s preliminary estimate was that the failure would cost its Deposit Insurance Fund (DIF) about $28.5 million. The estimate will change over time as assets are sold. Suspected fraud caused the higher estimated cost to the DIF.