Crain's: Northern Trust veteran becomes Seaway Bank CEO

Darrell Jackson

More changes at one of our neighborhood banks. This time at the top!

Seaway Bank & Trust Co., the largest black-owned bank in Chicago, which has stumbled recently after decades of profitability, has named a veteran of Northern Trust Co. as its president and CEO.

Darrell Jackson, executive vice president and Northern Trust's president of wealth management for suburban Illinois, succeeds Walter Grady, who has led Seaway for more than 30 years. Mr. Grady, 74, will retire effective July 31, and Mr. Jackson, 56, will start with Seaway on Aug. 1, the bank announced today.

The move comes as Seaway tries to recover from substantial losses tied to acquisitions of two failed banks. Those losses have Seaway's capital at levels below what's necessary to be deemed “well-capitalized” by regulators.

For those of you who remain concerned that this bank could be sold and possibly purchased by a non-black ownership group:

Mr. Jackson's hiring puts to rest speculation that Chicago-based Seaway might be sold. But the $538 million-asset bank needs an equity infusion to bolster its capital levels.

In an email, [Seaway Bank Chairwoman Veranda Dickens] said: “The bank’s management team is determining the amount of capital to raise and soon will begin interviewing potential investment banking partners. Once the capital raising process moves forward, it’s likely to include potential non-African-American investors, as well, who believe in the bank’s mission and bright future. There have never been plans to sell the bank.”

Seaway's troubles came from higher-than-expected losses stemming from failed minority-owned banks it acquired in Milwaukee and west suburban Maywood.

The bank Seaway acquired within the last few years in Maywood wasn't "minority-owned" although the bank in Milwaukee - formerly known as Legacy Bank - had been.

UPDATE 4:15 PM: An official statement by Seaway Bank