On January 17, 2025, the Illinois Department of Financial and Professional Regulation (IDFPR), Division of Banking, took possession and control of Pulaski Savings Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as the receiver. According to the FDIC, the estimated loss to the Deposit Insurance Fund (DIF) was $28,449,000 or 62 percent of the bank’s $45,919,248 in total assets. Following a period of supervisory actions by regulators, the IDFPR took possession of Pulaski Savings Bank because FDIC and IDFPR examiners verified significant unresolved and unexplained discrepancies within suspense accounts as well as large deposits maintained off the bank's core system.
When the DIF incurs a loss under $50 million, the Federal Deposit Insurance Act requires the Inspector General of the appropriate federal banking agency to determine the grounds identified by the state or federal banking agency for appointing the FDIC as receiver and to determine whether any unusual circumstances exist that might warrant an In-Depth Review of the loss.
Based on our review of key FDIC documents, including examination reports and prompt corrective action letters to the bank, Pulaski Savings Bank’s failure occurred due to impaired capital. We determined that an in-depth review of the loss is warranted given the high estimated loss rate (62 percent) and unaccounted for deposit liabilities. Specifically, the bank had deposit liabilities of at least $20.7 million not accounted for in its core system. The recording of these deposits depleted the bank’s capital.
Our review identified unusual circumstances that warrant an In-Depth Review of the loss.