All deposits of Pulaski Savings Bank of Chicago, Ill., were assumed by Millennium Bank of Des Plaines, Ill., under a purchase-and-assumption agreement entered into Friday by the federal bank deposit insurer to protect depositors, the agency said.
“The FDIC [Federal Deposit Insurance Corp.] preliminarily estimates that the failure will cost its Deposit Insurance Fund (DIF) about $28.5 million,” it said. “The estimate will change over time as assets are sold. Suspected fraud caused the higher estimated cost to the DIF.”
The FDIC said Pulaski Savings Bank – the first bank to fail in the U.S. this year – reported total assets of $49.5 million and deposits of $42.7 million as of Sept. 30. It said Millennium Bank agreed to assume all deposits at the time of closing for a 4.61% premium and that it will also purchase approximately $45.0 million of the failed bank’s assets. The FDIC said it will retain the remaining assets for later disposition.
The bank was closed Friday by the Illinois Department of Financial and Professional Regulation, the FDIC said.
Millennium Bank, Des Plaines, Ill. Assumes All Deposits of Pulaski Savings Bank, Chicago, Ill.
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