Foster Bank sees profits as other minority banks struggle

What would this mean in terms of the city's black-owned banks. We see that Highland Community Bank (one of four black-owned banks located on west 87th Street) is facing loan woes!

In his office on the Far North Side of Chicago, Foster Bank Chief Executive Paul Byungtag Kim maps out a growth plan that many lenders these days couldn't contemplate.

The $584.6 million-asset bank recently told the Federal Deposit Insurance Corp. that it's interested in bidding on failed institutions.

Last month Foster also applied for permission from Virginia banking regulators to open a Washington, D.C.-area branch that would cater to the large Korean population. It helps that Foster, which just celebrated its 20th anniversary, is turning a profit.

Nationwide, U.S. minority banks lost money in the first half, according to the Federal Deposit Insurance Corp. The regulator defines a minority bank as one in which 51 percent or more of the institution's stock is owned by blacks, Asians, Hispanics or Native Americans. Also, banks are considered minority if most of the board is minority and if the community it serves is mostly minority.

In Illinois, of 15 minority banks, seven reported losses in the first half of 2009.

There are two black-owned banks in the 6th Ward. Seaway Bank has it's flagship branch in the 6th on east 87th Street and Illinois Service Federal Bank has a branch at 87th and King Drive. That reminds me, you can find this info in the recently distributed Aldermanic newsletter:

Illinois Service Federal Savings & Loan is celebrating its 75th year of operation.  Opened in 1934 in a 1 room office on 47th & State, with $7000.00 in deposits, the bank now has 2 branches ( 46th & King and our branch at 87th & King) with a total of more than $133 million dollars in deposits. The legacy of the 13 African American businessmen who wanted to create a Savings & Loan where Blacks could obtain mortgages is all around you as you drive through Chicago's South Side. When Blacks were denied mortgages to buy property in Chatham, South Shore, Park Manor, Englewood, etc., they could and did turn to ISF.  75 years later and still supporting our community, ISF welcomes your patronage. For more information go to http://www.isfbank.com/

P.S.  ISF was never in danger during the most recent banking meltdowns because it didn't engage in predatory/risky loans.  

Seaway was said to be in the same boat so this is excellent news for certain!