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Showing posts with label seaway bank. Show all posts
Showing posts with label seaway bank. Show all posts

Thursday, December 17, 2020

Union National Bank Christmas Club record via Vanished Chicagoland #tbt

 Here's another Throwback Thursday post, and a far more timely one. A Christmas Club record book from the former Union Nat'l Bank formerly located in Roseland via Vanished Chicagoland

The Roseland Branch of the former Seaway National Bank - now part of Self Help FCU - is a descendent of the former Union Nat'l Bank located at 11108 S. Michigan Ave. Seaway ultimately demolished the old Union Bank building and built another branch a bit south though still using that same address.

Union Bank was purchased by Seaway in the 1980s. Seaway Nat'l Bank ultimately became Seaway Bank & Trust Co. in 2008 and unfortunately failed in 2017.


Tuesday, September 19, 2017

Tomorrow is the last day for the #SeawayBank farmer's market

Division of Self-Help FCU
It was started back up early last month and on Wednesday that's it for the year! Here's hoping they return with fresh produce for local residents next year!

Tuesday, August 8, 2017

Seaway Bank Farmer's Market Aug. 2nd to Sept. 20th, 2017

Seaway Bank as a division of Self-Help FCU is hosting a farmer's market every Wednesday from Aug. 2 to Sept. 20, 2017 from 9 AM to 2 PM. at the main branch located at 645 E. 87th Street. Refer to flyer below for more details or click this link for a printable flyer.



Thursday, June 29, 2017

Against All Odds: The Fight for the Black Middle Class

Crossposted from The Sixth Ward
[VIDEO] One of the main reasons why I started The Sixth Ward was to in some way highlight the middle-class aspects of the 6th Ward as it was drawn between 2002 to roughly 2015. Chatham isn't the only community with a solidly Black middle-class population, but it has often been considered a bastion of the Black middle-class.

This documentary was mentioned on the ig profile for the new owners of the former Seaway National Bank - Self-Help FCU - doing a quick mention of this documentary Against All Odds: The Fight for the Black Middle Class. It's available for viewing either on pbs.org or you can watch it through the PBS app available on iPhones & iPads and likely Android also.


It's a great history Blacks came from sharecroppers and then reached some form of a middle-class through entrepreneurship, trades, manufacturing, even as government workers. Although as I've learned overtime with this blog having taken an interest in the issues of the middle-class being white middle-class is often different than being Black middle-class. One difference is certainly the wealth gap:
Nearly 40 percent of black children are poor, and for every dollar of wealth in the hands of the average white family, the typical black family has only a little more than a nickel.
Also mentions which is also part of this wealth gap is the great recession and how many Black families are still digging out of it. Just think as Barack Obama took the reigns as President of the United States many Black neighborhoods here in Chicago were feeling the crisis of foreclosure.

Also noted how if one bought a home in a solidly Black populated area the values of the home would be devalued compared to a home in a white populated area. If both areas are considered solidly middle-class where people generally take care of their property there would still be a difference as far as value based upon the majority race.

With that being said is the path different for those people who seek to join the ranks of America's middle-class? What held an earlier generation back at least 50-60 years ago may not be a major factor at the start of the 21st century.

Monday, February 6, 2017

Crain's: Seaway Bank buyer rolls dice on African-American acceptance

Seaway Bank which has a branch located near 111th/Michigan failed on January 27, 2017. The assets of the bank were purchased by the Indian-American owned State Bank of Texas. Most of anything written about this shocking development was posted to sixthward.us. The below post is crossposted to sixthward.us!
www.seawaybank.us
It's almost been two weeks since the formerly Black-owned Seaway Bank was purchased by the Dallas, TX based State Bank of Texas which is owned by an Indian-American family. We already know that the Seaway name will be retained primarily in an effort to maintain some of the predominantly Black customers.
What does the "bank black" movement stand for? The Indian-American family that just took ownership of Chicago's largest African-American-owned bank is about to find out.

Dallas-based State Bank of Texas, a lender mainly known for making loans to Indian-American operators of hotels around the U.S., was tapped Jan. 27 by federal bank regulators to assume the deposits and most of the assets of Seaway Bank & Trust, based on Chicago's South Side.

A large percentage of Seaway's depositors are drawn at least in part by its status as African-American-owned. Seaway's "bank black" campaign last year brought in at least $8 million, with new customers depositing their money at the bank on the basis of its ownership even though its financial condition was rapidly deteriorating.

How many of those depositors will want to stay with a Seaway Bank under Indian-American ownership?

Sushil Patel, president of State Bank of Texas, acknowledges the potential issue.

"I'm not a black bank," he says in an interview. "I'm not a white bank, but I'm definitely not a black bank."

The most important consideration for depositors, he says, is whether their money is safe.

"Banking is still banking," Patel says. "I respect the idea of depositors wanting to put money into a bank that will put money back into that community."
We learn for the first time one of the other bidders of Seaway:
There was competition in the bidding the Federal Deposit Insurance Corp. held for Seaway's assets and deposits. The three other bidders included another black-owned bank, Liberty Bank & Trust of New Orleans, according to an FDIC disclosure.

The agency didn't say how much Liberty bid or even whether its bid met the FDIC's specifications. Other bidders were Republic Bank of Chicago, owned by Greek Americans, and Raleigh, N.C.-based First-Citizens Bank & Trust, a publicly traded, $31 billion-asset lender.

Usually, regulators take pains to try to find a buyer for a failed minority-owned bank with the same ethnicity. That was the case in 2014 when State Bank of Texas took over failed National Republic Bank of Chicago, also an Indian-American-owned lender. Likewise, Seaway was the chosen buyer for Milwaukee's black-owned Legacy Bank in 2011.

In its deal with State Bank of Texas, the FDIC effectively paid the bank more than $40 million to take ownership of most of Seaway, according to the purchase agreement (see the PDF).

That will incentivize State Bank of Texas to work out Seaway's bad loans as efficiently and cost-effectively as possible.

The FDIC contacted 350 banks, including 102 owned by minorities, to bid on Seaway, a spokesman says. The Texas bank's was the lowest cost for the agency, which by law had to accept it, he says.

As with many Indian-American-owned banks, State Bank of Texas' lending expertise is chiefly in the hotel industry, accounting for about 60 percent of its loan portfolio.

Otherwise, it mainly makes commercial real estate loans, so it has little experience in Seaway's bread-and-butter business loans and mortgages.

"At the end of the day, it's still lending," Patel says.

Once Seaway's bad loans are charged off, sold or worked out, the bank will continue making the same kinds of loans it used to, he says. The Patels won't install a new bank president for Seaway. Instead, the three family members—Sushil, his father, Chan Patel, who is chairman and CEO, and his brother Rajan Patel, chief lending officer—will take turns being in Chicago and running the operations, he says.
Liberty Bank has a branch on the west side where the former Community Bank of Lawndale/Covenant Bank was headquartered. Seaway won't have their own management team for the time being as you saw in the excerpt.

In recognition that this is a business we're talking about my hope is that in the next few years State Bank could possibly set up Seaway for a sale to a Black-ownership group. This is their business for now as you see in the screencap above so it's ultimately up to them whether or not they want to eventually sell.

In the meanwhile, we see that in this article Illinois Service Federal is setting themselves up as the only locally Black-owned bank here in Chicago. Also we see in this article actions taken by the community whenever a Black-owned financial institution is taken over by someone outside of the community - for example the former Community Bank of Lawndale.

What many of us should be concerned about particularly customers are the status of the many jobs that could be at stake during the course of this transition. State Bank doesn't have as many branches as Seaway so it's possible there will be some layoffs.

I suggest you read the whole thing.