Tag: State Bank of Texas

Crain’s: Failed Seaway Bank Gets Yet Another Owner — A Credit Union

Seaway Bank

Friday, March 10, 2017 || By Local News Curator || @maywoodnews

Seaway Bank & Trust — once the state’s largest black-owned minority bank and the sixth largest in the country — has yet another owner after the bank shutdown and its assets were acquired by State Bank of Texas in January.

A March 10 Crain’s report announced that the Dallas-based bank is selling the branches and deposits it acquired  from Seaway to a North Carolina-based credit union called Self-Help Federal  Credit Union.

According to Crain’s, Self-Help “specializes in lending to low-income and minority customers and already owns a Chicago lender focused on Hispanics.”

State Bank of Texas “will continue to hold and manage Seaway’s existing loans and will operate the foreign-exchange concessions at O’Hare and Midway airports,” Crain’s reports.

“Self-Help,” Crain’s adds, “is clearly a better fit with the mission of what had been Chicago’s largest black-owned bank for decades — provide credit in communities other banks avoid.”

Crain’s notes that Self-Help, which will have $200 million in deposits “but none of Seaway’s loans” will “quickly establish a mortgage lending operation from scratch.”

Martin Eakes, the credit union’s CEO, said that his institution will focus what it does best — “lend to households without a lot of savings but with steady income.”

Self-Help isn’t black-owned but most of its board members are African-American. Eakes said the credit union won’t “try to pretend we’re black-owned.” He noted, rather, that the institution is “multi-ethnic and member-owned.”

Seaway still has branches in Maywood, at 150 S. 5th Ave., and Broadview, at 2100 Roosevelt Rd. The Crain’s article didn’t detail what might happen to those branches once Self-Help takes over the Seaway franchise, a process that is expected to begin in May. VFP

Read the full Crain’s article here

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Crain’s: Seaway Bank’s New Owners Will Preserve Its Name, Say Deposits are Safe | But Who to Blame for the Failure?

Seaway Bank Draped in Purple

Seaway Bank & Trusts’ Maywood branch. Chicago’s largest black-owned bank failed earlier this year. | File

Monday, February 13, 2017 || By Local News Curator || @maywoodnews

A Feb. 4 Crain’s Chicago Business report caught up with Sushil Patel, the president of State Bank of Texas, which now owns the now-defunct Seaway Bank & Trust, once the state’s largest black-owned bank.

Patel told Crain’s reporter Steve Daniels that he knows he isn’t a blank bank, but that should be of secondary importance to depositors.

“I’m not a black bank,” Patel, whose bank is owned by Indian-Americans, told Daniels. “I’m not a white bank, but I’m definitely not a black bank.”

“Banking is still banking,” Patel said. “I respect the idea of depositors wanting to put money into a bank that will put money back into that community.”

“To that end,” Daniels reported, “the Patel family, which owns State Bank of Texas, will preserve the Seaway name for the 10 Seaway branches in the Chicago area and Milwaukee. State Bank of Texas’ one other branch in Chicago, on Devon Avenue, will continue with that name.”

Now with Seaway out of the picture, the Chicago area’s only remaining black-owned bank, Illinois Service Federal, is looking to seize the moment.

“Those who want to bank black have a place they can do that in Chicago,” ISF Executive Vice President Monica Thomas told Daniels.

Crain’s Greg Hinz investigates institutional homicide

In a Feb. 10 article, Crain’s columnist Greg Hinz put on his detective’s hat and began sniffing out the main suspects responsible for Seaway’s demise:

“As in an Agatha Christie mystery, there are a lot of perpetrators in its demise,” Hinz wrote. “But in the end, no one with the wherewithal in Chicago cared enough to intervene, not City Hall or anyone in the city’s still substantial black business community. And Chicago is left with a stinking corpse.”

For a list of perpetrators, read Hinz’s full article here. Read Daniels’ full article here.

Don’t forget First Suburban National 

While journalists conduct a postmortem of black-owned Seaway, let the locals not forget the death of the local bank, First Suburban National, in 2010. First Suburban had served Maywood since 1943.

You can read Crain’s coverage of Seaway’s takeover of First Suburban seven years ago here.

So, remember, this isn’t  just a story of the demise of black-owned business. It’s also a story, told over and over again, of the demise of the small business that prioritizes the interests of a particular community over those of dispersed, atomized investors. VFP

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