Crain's: Is Chicago about to lose another black-owned bank?

Via Crain's

More bad news from local lender Seaway Bank & Trust Company:

Seaway Bank & Trust is in the early stages of a capital-raising campaign that, if successful, could well threaten its status as the largest black-owned bank in the Midwest.

The South Side lender has suffered $16 million in total losses over the past five quarters ended March 31. Its capital is below the minimum needed for the bank to be deemed “adequately capitalized” by regulators. To prop it up and enable it to lend actively, Seaway is preparing to select an investment banker to raise what one source says would be more than $15 million in fresh capital.

In an email, a spokeswoman acknowledges the need for cash but won't comment on the amount sought. “Seaway is currently engaging investment bankers for a capital raise,” she says. “We remain committed to our mission and our markets.”

The bank also remains without a CEO since the departure in September of Darrell Jackson, who led Seaway for only a year before his exit. Executive Chairman Veranda Dickens, who has been in charge since the 2013 death of her husband, longtime Seaway owner and Chairman Jacoby Dickens, “is managing day-to-day operations of the bank,” the spokeswoman says. The CEO search “is ongoing and progressing well,” she adds.

Those optimistic words notwithstanding, Seaway has suffered quite a reversal of fortune in the 18 months since Dickens declared that the bank wouldn't need financial help. That came after high-priced consultants determined that the previous management team had made material accounting errors not in the bank's favor. After financials were restated for all of 2013 and half of 2014, a substantial loss was changed to a profit for 2014. Since then, however, losses have piled up, leaving Seaway with just $25 million in equity. At the end of 2014, when Dickens made her declaration, the bank's equity stood at $43 million

Seaway's closest competitor apparently is Urban Partnership Bank:

It's not assured that Seaway will be able to raise the money, especially when another South Side bank catering to African-Americans, Urban Partnership Bank, also is seeking more than $20 million in new equity.

UPB—already backed by banking giants JPMorgan Chase, Bank of America and Goldman Sachs—is expected to seek the funds from a group of local and national banks. It's ahead of Seaway in terms of holding meetings with prospective investors and other preparations.

If other banks end up bailing out UPB, that could eliminate an important potential source of capital for Seaway.

And if Dickens does find help, the likelihood of keeping the bank in African-American hands may be remote. The amount of money Seaway needs likely will compel her to seek investors interested in preserving an important city lender regardless of their race.

Chicago has been losing black-owned banks, with two failing in recent years. Another on the verge of failure—South Side thrift Illinois Service Federal, formed during the Great Migration of blacks to Chicago from the South—recently was rescued with $9 million from a Ghanaian-American family.

I've attached a graphic regarding Seaway courtesy of Crain's.

Going back into the vault for a moment...

[VIDEO] During the early days of this blog, we shared a video from a blogger based in Atlanta. The gist was basically was save money and do business with a Black-owned financial institution. He even showed us that he was putting his money where his mouth is and made a deposit at this bank.

Capitol City Bank & Trust had a branch not too far away from the campus of the Atlanta University Center home of Morehouse College, Spelman College, and Clark-Atlanta University. How many students pass this branch and never think to open an account there.

Anyway I found our recently that Capitol City failed earlier this year. This only brings to mind the dwindling number of Black-owned financial institutions in the nation. It's probably not much different that how many other banks in the country failed in the midst of the financial crisis.

Unfortunately just like the fate of a Chicago based Black-owned bank Highland Community Bank, the assets of the Highland and Capitol City are now owned by majority-owned institutions. Highland is now owned by a bank based in Indiana and Capitol City is now owned by a North Carolina based bank.

Also consider in recent months that another locally owned Black-owned bank - Illinois Service Federal - is looking to go from a depositor owned spendthrift to a shareholder owned institution. They are seeking an infusion of capital for its survival.

CapFax: Fixing a city that still doesn’t work well

So Rich Miller of the Capitol Fax blog shares with us an op-ed from Crain's regarding small businesses. What does the city have to do help small business start and grow in the city? The second paragraph sums up some of my feelings regarding why we need small businesses in minority communities:

Small businesses can bring a steady stream of opportunities into Chicago's neighborhoods, infusing them with new flavors and innovative ideas, while making city streets safer and local jobs more plentiful. But Chicago's notoriously complicated regulations create bottlenecks, reducing that stream to a trickle.

I suggest you read the whole thing.

BTW, another wrinkle is to ensure that we have a healthy number of small business owners who are from minority communities. Furthermore the comments on this issue at the Capitol Fax are pretty good as well.

Highland Community Bank closed and Seaway Bank 2.0 suffers a "glitch"

Highland Community Bank

Today in the news I saw that Highland Community Bank HQ @ 1701 W. 87th St. had been taken over by the FDIC. Over the years Seaway Bank had attempted to buy Highland but to no avail and somehow Highland was able to survive. There are those who follow community lenders who wondered WHEN that small lender would finally fail. 

Today we have our answer.

Regulators have closed a small lender in Chicago, making it the second U.S. bank failure of 2015 following 18 closures last year.

The Federal Deposit Insurance Corp. said Friday that it has taken over Highland Community Bank, which operated two branches.

The bank had $54.7 million in assets and $53.5 million in deposits as of Dec. 31.

United Fidelity Bank, based in Evansville, Indiana, agreed to assume all of Highland Community Bank's deposits and to buy the failed bank's assets.

So that makes it only three Black-owned banks in Chicago, which includes Seaway Bank, Illinois Service Federal, and New Orleans, Louisiana based Liberty Bank (which operates a branch on Chicago's west side formerly owned by Covenant Bank and Community Bank of Lawndale).

Speaking of Seaway it was recently in the news that they have been hit with a consent order by the FDIC:

Seaway 2.0 has stumbled on a glitch.

Seaway Bank & Trust, Chicago's largest African-American-owned bank, based on the South Side, has been slapped with a consent order by its regulators. The order requires it to hold elevated capital levels, strengthen management, halt dividend payments to investors and beef up controls to detect money-laundering and other criminal activity by customers.

The Federal Deposit Insurance Corp. along with the Illinois Division of Banking issued the order Dec. 16, little more than a month after Seaway had declared itself a successful turnaround following restatement of six quarters worth of earnings that substantially improved the bank's financial condition.

The order, which the bank consented to without admitting or denying charges of unsafe or unsound banking practices, requires Seaway to boost its “Tier 1” capital to 8 percent of its assets within 60 days. Based on Sept. 30 figures, the bank would need to raise nearly $8 million to hit that benchmark.

Seaway is celebrating 50 years in business this year. Hopefully they won't go the way of Highland Bank in the near future.

In the meanwhile as you read in the article for Highland, they will be taken over by Indiana-based United Fidelity Bank. In fact if you clicked on Highland official website it's noted on that with a link to that bank.

Are the loss of Black-owned neighborhood banks a loss for our neighborhoods?

VIDEO: Black Owned

[VIDEO] You may have seen a link to the vid above on our FB page. Produced by students at Chatham Academy High School through their After School Matters program it's a short documentary about Chicago's Black owned businesses.

They definitely highlight the businesses of 75th Street with Brown Sugar Bakery, Lem's BBQ, Soul Vegetarian, Authentic Cooking Catering, and KMT Health Food Store.

This documentary runs over 10 minutes.

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

Crain's: Widow of Seaway Bank owner takes charge, plots overhaul

The article I'm excerpting below was posted to our FB page last night about Seaway Bank. As noted earlier there were some big changes in store because of the death last year of longtime majority owner and chairman Jacoby Dickens. Also noted was that the bank posted a loss last year thanks to the acquisitions of two banks that had been shut down by the FDIC within the last four years:

A year after the death of Seaway Bank and Trust Co.'s long-time majority owner, his widow has taken control of Chicago's largest black-owned bank and made significant changes.

Veranda Dickens, the wife of the late bank chairman Jacoby Dickens who inherited his majority stake in Seaway, was named bank chairman earlier this month and moved promptly to appoint an outside consultant to the newly created role of chief restructuring officer.

The bank also will seek to raise capital to shore up its finances following a year in which it lost 30 percent of its book value to unanticipated losses tied to recent failed-bank acquisitions in Milwaukee and west suburban Maywood. Seaway is in the process of selecting an investment bank to find investors and hasn't yet settled on how much it will try to raise. Observers expect the bank to seek $10 million or more.

And Ms. Dickens has recruited three prominent African-American business people to join Seaway's board. They are Gwendolyn Butler, president of Chicago-based commercial real estate investment manager Capri Capital Partners LLC; Eric Reeves, general counsel and managing director of Duchossois Capital Management; and Challis Lowe, recently retired senior vice president of human resources at St. Louis-based Ascension Health.

The moves come after $552 million-asset Seaway posted a $4.4 million loss in 2013, the bank's first annual loss in more than 30 years. At the end of 2013, Seaway's equity was barely above the threshold needed to be considered "well-capitalized" by regulators.

So the new Chairwoman of the bank made sure to note this in the case of bringing in new investors:

Asked about potential investors, Ms. Dickens said in an email, "We will be looking at a diverse range of potential investors as this process progresses and have no plans to sell Seaway."

I suppose we'll have to find out what else we can expect from Seaway Bank. Also a press release from Seaway about the appointment of Ms. Dickens as Chairwoman is posted to the bank's official website.

DNA Info: Seaway Bank and Trust Co. in Chatham Is Not Being Sold, Officials Say

Photo via DNA Info

I'm really sorry I missed this article. In Febrary, Crain's Chicago Business published an article about losses at Seaway Bank & Trust Company as a result of their acquisitions of two banks. Then got translated into Seaway may be forced to sell at some point.

To be sure acquiring two banks taken over by the FDIC is change enough and then the death of longtime owner & chairman Jacoby Dickens may well inspire more changes at the black-owned financial insitution. All the same in this DNA Info article from last month an executive from the bank is seeking to reassure customers that the bank will not be sold and would remain Black-owned:

Officials with Seaway Bank, 645 E. 87th St., said customers should know that while it suffered financial losses of $4.4 million in 2013, there are no plans to close or sell the city's largest black-owned bank.

"Seaway is not for sale, nor has there been any discussion about selling the bank," said Walter Grady, president and CEO of Seaway. "I really hate that there is a perception that we are considering selling because of a bad year. Every business has a bad year eventually."
...
Seaway Bank's losses last year were due largely to its acquisition of a bank in west suburban Maywood and another bank in Milwaukee, Grady said.

In fact, Grady said not only is the bank not up for sale but it plans to expand by opening a new branch this year. He declined to give details about the new branch.

And Grady has one prediction about the bank's future.

"I am confident the bank will remain black-owned," he said. "We are committed to remaining black."

Also not to be a constant corrector, but there are two other Black-owned banks in the area. Unless anything has changed recently Highland Community Bank - located at 1701 W. 87th St - remains Black-owned even though over the years there have been attempts to purchase that bank at times by Seaway itself. Then also the former Community Bank of Lawndale then renamed Covenant Bank - located at 1111 S. Homan Ave - is now owned by New Orleans, Louisiana based Liberty Bank which is also Black-owned.

Crain's: After 2013 loss, Chicago's largest black-owned bank explores options

Seaway Bank

Here's the setup for what's going on at a major Chatham neighborhood financial institution:

Two failed-bank acquisitions gone awry led Seaway Bank & Trust Co. to post a big loss for 2013 — the first loss in more than three decades for Chicago's largest African-American-owned bank — and helped destroy 30 percent of its book value.

Seaway, the third-largest black-owned bank in the country, reported a $4.4 million loss last year. Its equity, which began the year at nearly $47 million, ended at less than $33 million. Its capital level finished just barely above the minimum needed to be deemed “well-capitalized” by regulators — the most important gauge of a bank's financial health.

The apparent cause was a large number of writedowns tied to Seaway's acquisitions in 2010 and 2011 of assets and deposits of failed banks in west suburban Maywood and Milwaukee.

The deals for Maywood's First Suburban National Bank and Milwaukee's Legacy Bank boosted Seaway's assets by more than a third, to $552 million as of Dec. 31. But loss projections for the two — particularly Legacy — have mushroomed. The Federal Deposit Insurance Corp., which entered into agreements with Seaway to share losses on the bad loans at the two banks, boosted its own loss projections from Legacy to $84.3 million as of the end of 2012 from $43.5 million when the bank failed in March 2011.

Also let's bear in mind the bank's longtime chairman Mr. Jacoby Dickens passed away last year:

The reversal in fortunes comes on the heels of the death in April of Jacoby Dickens, Seaway's longtime majority owner. His widow, Veranda Dickens, inherited his majority stake and succeeded him as bank chairman.

The change in leadership and the significant loss in value raise questions about the bank's future. Ms. Dickens is said to be open to exploring options for Seaway, according to people familiar with the matter.
...
Exploring options could mean trying to raise equity from existing or new investors while keeping control. Or, more dramatically, it could mean seeking a buyer.

Either course would be challenging. Mr. Dickens in past years was said to consider selling Seaway, but would entertain offers only from African-American buyers.
...
Ironically, the failed-bank deals that hurt Seaway were available to it because both banks were minority-owned, and federal bank regulators prefer to sell failed minority banks to minority buyers.

If Seaway confined itself only to African-American buyers today, the pool of potential suitors might be even slimmer than when Mr. Dickens tested the waters. There are only two African-American-owned banks larger than Seaway — one in New York and one in Boston. One of those, Carver Federal Savings Bank in New York, survived the recession only after a $55 million bailout in 2011 by Goldman Sachs Group Inc., Morgan Stanley and other big New York financial firms.

Uhhhhh, not to be contradictory but I don't believe First Suburban Bank of Maywood was minority-owned. Legacy Bank of Milwaukee on the other hand was. Although, it's good that the FDIC elects to sell failed minority banks to other minority buyers.

Seaway is only the third-largest Black-owned bank in the nation. Two other banks are larger than Seaway. If the leadership ever decided to sell the bank would they be able to make the deal:

If Seaway confined itself only to African-American buyers today, the pool of potential suitors might be even slimmer than when Mr. Dickens tested the waters. There are only two African-American-owned banks larger than Seaway — one in New York and one in Boston. One of those, Carver Federal Savings Bank in New York, survived the recession only after a $55 million bailout in 2011 by Goldman Sachs Group Inc., Morgan Stanley and other big New York financial firms.

 The article concludes with some optimism. Stating Seaway remains well capitalized and could eventually return to profitability assuming no further writedowns on acquired loans. At this moments there is no pressure to seek more investors as well.

BTW, I became aware of this article via a e-mail blast from the Greater Chatham Alliance. I'm very sorry that this article had been overlooked during the past month.

Crain's: Deal off to rescue black-owned bank on South Side

Highland Community Bank

It appears that Highland Community Bank located west of Ashland on 87th Street won't be acquired after all:

Matthew Roth, a former Harris Bank executive who has attempted for several years to start a bank on Chicago's South Side, confirmed that his deal announced in March to recapitalize Highland is off. He would provide no other details.

The lack of a deal leaves Highland, a 43-year-old lender owned by former University of Illinois football player George Brokemond, at risk of failing by the end of the year.

Highland needs millions to continue. Mr. Roth's startup, Generations Community Bank, would have needed $8 million or more to recapitalize the bank.

Highland posted a $781,000 loss in the first half of the year, enough to push its capital levels to the danger point. Highland's “Tier I” capital — the type of capital most valued by regulators — was just 2.5 percent of its assets, leaving the bank undercapitalized. A Tier I leverage ratio at 2 percent or lower typically means regulators will seize a bank soon thereafter.

Highland CEO Dennis Irvin didn't respond yesterday to requests for comment.

I'm very curious as to what scuttled that deal. Here's more on its significance and what could happen if the many issues there could cause it to fail like Covenant Bank who was taken over by the FDIC and ultimately bought by a New Orleans based Black-owned financial institution:

That would leave just two African-American-owned institutions in the city — Seaway Bank & Trust Co. and Illinois Service Federal Savings & Loan Association of Chicago, both on the South Side. Seaway, which has grown by acquiring the deposits and assets of two failed banks in the last few years, would be expected to bid on Highland's deposits and assets if regulators move to seize it.

Crain's: Possible rescue for black-owned, South Side bank

To be sure, Seaway Bank had been in talks years ago with Highland Community Bank to by them out but they never appeared to get together on a deal. And Seaway had already acquired two banks in 2010 and 2011 who were failing so Seaway isn't in the running this time.

A would-be savior has emerged for foundering Highland Community Bank, one of just three black-owned banks left in Chicago.

But the definitive agreement from the parent of startup Generations Community Bank to acquire Highland, announced today, is subject to raising at least $8 million in equity both to absorb loan losses at Highland and to capitalize it to grow.

Matthew Roth, the former Harris Bank executive who has pursued starting up a minority-focused community lender on the South Side for several years, said in an interview that he and his team believe they understand the depth of the loan problems at Highland. He declined to say how much he thinks he needs to raise from investors, but one person familiar with Highland said it's at least $8 million and probably more.

Mr. Roth, who would run the newly named Generations Community Bank as president and CEO if the deal closes, said he hopes to complete the capital raise and garner regulatory approvals in the early third quarter.

“We feel optimistic about our prospects to raise the capital,” he said. “It's ambitious, but we think we can get there.”

Also:

If Mr. Roth is successful, Highland could well lose its status as a black-owned bank, but would be officially listed as a “minority-led” institution because more than half of its board would be minority individuals, he said.

Edward Williams, another former Harris Bank executive and an African-American, would serve as chairman of Generations Community Bank.

I clicked through to another Crain's article that showed how minority-banks are faring in the current economic climate. I think it's worth a look if you're interested. It had been published last November.

WBEZ: South Side movie theater Chatham 14 expected to re-open Friday

Credit: Zol87/flickr

I'm not certain this is the story JP heard yesterday on Chicago Public Radio, but here's a write-up about the Chatham 14. They have been closed since Friday and it appears after a full week they will re-open.

Now the theater may be re-opening. In an e-mail, owner Alisa Starks (who along with her husband Donzell opened the theater in 1997) said, "It's been a challenging process. But the theater is expected to be open by Friday." Starks also said a new company will manage it.

The rift that apparently caused the original closure, a conflict between the Starks and their investor, Michael Silver, seems to have been smoothed over, at least temporarily. Starks told me, "Most positively, our investor has recently committed to making needed capital improvements."

What led to the shuttering of the Chatham had been hard to sort out. In the immediate aftermath of the closing, there were various reports, starting with this community blog. A Chicago Sun-Times article claimed the Starks have a history of not paying city amusement taxes and had been to court with movie distributors. And CBS2 quoted sources saying things went sour between the Starks and Silver.

The Starks own outright their Lawndale 10 theater on Roosevelt Road and a shuttered property at 62nd and Western. At Chatham both Starks and Silver have discussed plans for digital convergence and other improvements, but those can't proceed without some sort of resolution between the partners.

 BTW, this community blog is in fact The Sixth Ward.

In any event, let's hope that the conflict between the Starks' and Mr. Silver is smoothed over and that the theater will reopen this Friday or in 10 days.

Press Relase: ICE Chatham to re-open this Friday

Thanks to Leslie Honore and Greater Chatham Alliance, who passed on this press release.

Also, WBEZ (Chicago Public Radio) released an in-depth story on ICE Theater this afternoon, which included a mention that there would be an official statement either today or tomorrow (No link to that story was available. It aired Tuesday at ~ 6:22pm). Here is that official statement:

Izola's 90th birthday include fundraisers

NOTE: Click on images for a larger resolution! 

There is a 90th Birthday celebration for Izola White on the weekend of September 8-9., 3p-7p Sunday's celebratiuon is open to the public. Saturday's celebration requires a minimum contirbuition of $250.

It's a fundraiser to help Ms. White live at her own home rather than a nursing home.

Here are the details from Facebook

Come and be a part of an iconic celebration honoring Ms. Izola White and watch a community come together for a woman who has given so much to so many. Izola has done so much for others in her over 50 year history as owner of the restaurant. Through her misfortune, she was forced to close her place due to illness and financial problems. She now faces being placed into a nursing home if her living expenses aren’t met. this fundraiser will help relieve her of this worry and allow her to enjoy her home as she ...turns 90 years old. The effort will also bring a possibility of keeping her dream alive as the new ownership takes place at this location. PLEASE come out and show your support, you won’t regret it!


Key Note Speaker: Jesse Jackson Sr, Alderman Sawyer, Dorothy Brown, Spencer Leak Sr, Greg Hinton, Herb Kent, Emil Jones


Saturday, Sept 8th 3:p.m to 7:p.m dinner reception, live jazz Band, special guest speakers, picture auction (Photos from the restaurant ) and raffles. Minimum donation $250.00

Sunday Sept 9th 3:p.m to 7:p.m is community and Seniors citizens Day in the parking lot of Izola’s Restaurant Live Band, Food & Drinks ,Guest Speakers, Raffles. Open donation( Bring your Chair , Chairs are limited)

Let us know here at The Sixth War if you have further details, or have other comments regarding Izola's.

Note: the many photos on Izola's wll will be auctioned off, such as this one from Bernie Mac.

Captain Hard Times Dining falling on hard times?

Just saw a sign in front of Captain's Hard Times dining, with the city threatening to cut off the water due to an unpaid bill of nearly $1900.

Captain's has a cafe style side, but also has a ballroom that would make a perfect site for a banquet or wedding reception.

If Captain's closed, it would be a horrible loss to our community.

Yonni's Chicken & Waffles (occupying the former Chatham Pancake House) also closed due to finances.

How can we help our businesses survive?

Are there any businesses we should focus on to help them survive or even thrive?

Chatham Business Association Awards dinner -- NOT in Chatham?!

Saw this sign for the Chatham Business Association's annual awards gala, to be held on September 17, 2010 at the Hyatt Regency downtown.

Why isn't it being held at some place such as Captain Hard Times Dining? It's a perfect place for an awards banquet (or a wedding reception, or other special events)

Seems kind of strange that an organization that is supposed to promote business in the neighborhood is taking it (necessarily?) out of the neighborhood, no?

Unless there isn't capacity in our neighborhood, why not have it here?

Now, if there are so many attendees that it might not be practical to have it at Captain's. But if the only issue might be parking, perhaps they could provide complimentary valet service (using places such as Ruggles School and local businesses).

Let's hope other community leaders continue to use the meeting rooms of businesses such as Army & Lou's and Chatham Pancake House.

Cool Building Wednesday: Pride Cleaners

Lee Bey has posted on his blog an entry on Pride Cleaners, at 79th & St. Lawrence.

Cool Building Wednesday: Pride Cleaners

This photo is one of several that Lee Bey has taken, and published on his site.

Check out his blog entry and please comment both here & there! (Several people with ties to Chatham have posted there).

If i read the comments section correctly, Lee Bey said he grew up near Chatham. We'd love for him to share more stories!

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!