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.
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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