US regulators have abruptly shut down a bank in Illinois in the first bank failure of 2025.
The Federal Deposit Insurance Corporation (FDIC) says the Illinois Department of Financial and Professional Regulation (IDFPR) has closed Pulaski Savings Bank.
The FDIC has been appointed as the receiver and has transferred all deposit accounts and most of the bank’s assets to Millennium Bank.
The FDIC says it will have to pay about $28.5 million from its Deposit Insurance Fund to cover the cost of the failure, pointing to “suspected fraud” as the primary factor driving the expense.
The agency has not provided additional information on why the bank collapsed.
As of September, Pulaski Savings Bank had $49.5 million in total assets and $42.7 million in total deposits.
In December, the FDIC said 68 American banks are on its “problem list,” meaning the firms are experiencing financial, operational or managerial weaknesses that could reasonably threaten their soundness if unresolved.
The US witnessed two bank failures last year, starting with the closure of Republic First Bank in April, which had $6 billion in assets and $4 billion in deposits.
That was followed by First National Bank of Lindsay in Oklahoma, which was closed in October with about $107.8 million in assets and $97.5 million in deposits.
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