Chicago-based Pulaski Savings Bank failed on Jan. 17.
The Illinois Department of Financial and Professional Regulation closed the bank and appointed the FDIC as receiver. The FDIC then entered a purchase-and-assumption agreement with Des Plaines, Ill.-based Millennium Bank to assume all deposits of Pulaski Savings Bank.
Millennium Bank also agreed to acquire $45 million of Pulaski Savings Bank assets, with the FDIC keeping the remaining assets for later disposition. Pulaski Savings Bank’s lone branch reopened as a Millennium Bank branch on Jan. 18.
The FDIC expects the failure will cost the Deposit Insurance Fund $28.5 million, noting that suspected fraud inflated the total. The cause of the bank failure was not released.
As of Sept. 30, Pulaski Savings Bank had $49.5 million in assets and $42.7 million in deposits.
The failure came less than a week after Chicago-based Mutual Federal Bank’s planned acquisition of the bank was called off.
Pulaski Savings Bank was the first bank to fail this year. The First National Bank of Lindsay, Okla., was the last bank to fail, on Oct. 18, 2024.