Pulaski Savings Bank, a Chicago-based community bank with $49.5 million in assets, was shut down Friday by the Illinois Department of Financial and Professional Regulation.
The Federal Deposit Insurance Corporation was appointed receiver, and all of the bank's $42.7 million in deposits were transferred to nearby Des Plaines Millennium Bank in Illinois.
“Millennium Bank has agreed to assume all deposits at a premium of 4.61% at closing and will purchase approximately $45 million of the failed bank's assets,” the agency's release states. . “The FDIC will hold the remaining assets for later disposition.”
Pulaski Savings Bank (one location only) will reopen as a Millennium Bank branch during regular business hours on Saturday.
According to the FDIC, depositors at failed banks automatically become depositors at Millennium Bank and do not need to do anything to access their accounts.
The closure of Pulaski Savings Bank and the transfer of its deposits to Millennium Bank marks the first bank failure of 2025.
Prior to Friday's bankruptcy, First National Bank of Lindsay in Lindsay, Oklahoma, was the last time the agency dissolved an FDIC-insured bank in October 2024.
The Office of the Comptroller of the Currency shut down Lindsay First National Bank for what regulators said were false bank records that suggested fraud and depleted the bank's capital reserves.
The First National failure is estimated to cost DIF $43 million, but the agency predicted the Pulaski failure would result in slightly less losses.
“The FDIC preliminarily estimates that this failure will result in losses to the Deposit Insurance Fund (DIF) of approximately $28.5 million,” the FDIC said in a release. “Estimates change over time as assets are sold. The alleged fraud has increased DIF's estimated costs.”
