Saturday, March 12, 2011

CRAIN'S: Seaway Bank & Trust buys Milwaukee's failed Legacy Bank

So for the first time in it's history, I believe Seaway Bank is going to cross state lines according this story:
Chicago's Seaway Bank & Trust Co., the city's largest African-American-owned bank, entered the Milwaukee market Friday with the purchase of a failed black-owned lender.

The acquisition of Legacy Bank, founded 12 years ago by three African-American women to cater to underserved parts of Milwaukee, is Seaway's second failed-bank deal in the last five months. It bought First Suburban National Bank in west suburban Maywood in October.

Wisconsin banking regulators closed Legacy Bank. Seaway acquired $183 million in deposits and $166 million in assets from the Federal Deposit Insurance Corp., which seized Legacy Bank Friday. Seaway entered into a loss-share agreement with the FDIC on $120 million of those assets.

With $517 million in assets as of Dec. 31, Seaway serves mainly the South Side and has branches and ATMs at both O'Hare and Midway airports.
OK so a predominantly white-owned suburban bank last year is taken over now the counterpart in Milwaukee.

1 comment:

  1. Clearly the deal became palatable for Seaway Bank via the Federal Deposit Insurance Corp. agreeing to a loss-sharing arrangement on $120 million of $166 million in Legacy assets. Bank assets consist primarily of loans.


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