Black-owned Seaway Bank fails

(Special from NorthStarNews Today) — Seaway Bank and Trust Co., once one of the nation’s largest Black-owned banks based on assets, went into receivership and has been taken over by State Bank of Texas, an Indian-owned bank headquartered in Dallas, the Federal Deposit Insurance Corp. recently announced.

The Illinois Department of Financial & Professional Regulation–Division of Banking and the FDIC, which insures deposits, was named Seaway’s receiver on Jan. 27, ending an effort by bank officials to raise needed capital to keep open the financial institution. An FDIC official did not return calls for comment.

Chicago-based Seaway’s 10 branches recently reopened as branches of State Bank of Texas during their normal business hours. Seaway’s deposits will continue to be insured by the FDIC so customers will not need to change banks.

As of September 30, 2016, Seaway had approximately $361 million in total assets and $307 million in total deposits, according to the FDIC.

In addition to assuming all of the failed bank’s deposits, State Bank of Texas agreed to purchase $309.0 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.

At one time, Seaway ranked third on the Black Enterprise magazine’s 100 Financial Services Bank list. In 2014, Seaway reported $551.6 million in assets.

Chan Patel founded the family-owned State Bank of Texas 30 years ago to serve the immigrant community.

This article originally published in the February 13, 2017 print edition of The Louisiana Weekly newspaper.