In the first bank failure of 2025, Pulaski Savings Bank in Chicago was closed by the Illinois Department of Financial and Professional Regulation on Friday.

The state regulator appointed the Federal Deposit Insurance Corp. as receiver, and the federal regulator then entered into a purchase and assumption agreement with Millennium Bank of Des Plaines, Illinois.

The $597 million-asset Millennium assumed all deposits of Pulaski Savings for a 4.6% premium. The bank will also purchase approximately $45 million of the failed bank’s assets, and the FDIC will retain the remaining assets for later disposition.

The FDIC estimates that the failure will cost its deposit insurance fund about $28.5 million, although that figure is expected to change as assets are sold.

Suspected fraud caused the higher estimated cost to the fund, the FDIC said in a press release.

As of Sept. 30, 2024, Pulaski Savings Bank had assets of $49.5 million and total deposits of $42.7 million.

The last bank failure in the U.S. was the First National Bank of Lindsay, in Lindsay, Oklahoma, in October, 2024. Six months earlier, Pennsylvania state regulators shut down Republic First Bank in Philadelphia.

The last bank failure in Illinois was Washington Federal Bank for Savings in Chicago in 2017.

There were five bank failures in 2023.

Butler Heritage Federal Credit Union in Middletown, Ohio, recently became the first credit union to be conserved by the National Credit Union Administration in 2025.

1st Choice Credit Union in Atlanta was the only credit union conserved by the NCUA last year, although the agency was named as conservator when Florida’s Office of Financial Regulation placed Alliance Credit Union of Florida into conservatorship in early November.