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BROADVIEW-MAWYOOD | One of Chicago’s few black-owned banks, Seaway Bank and Trust Co., was closed by the Federal Deposit Insurance Corp. today at 5pm and is being sold to State Bank of Texas of Dallas, the FDIC announced.
Seaway Bank and Trust’s 10 branches throughout Chicago, including Maywood and Broadview, will continue business as usuals under the new ownership, the FDIC said.
During normal business hours and the weekend, people with deposits will be able to access their money by writing checks or using ATMs or debit cards.
Deposits will continue to be insured by the FDIC.
In August 2016 Seaway had attempted to shore up its financial condition with a campaign in the community to support black-owned banks. It was part of a national movement known as “bank black,” led by rapper Killer Mike.
At the time of the campaign, Seaway Chairman Veranda Dickens said the bank had been hard hit by the housing crash, when many of the homes in south
Chicago plunged in value and left people struggling to pay mortgages.
The FDIC reported Friday that the bank had about $361.2 million in total assets and $307 million in total deposits. In addition to assuming all of Seaway’s deposits, State Bank of Texas agreed to purchase $309 million of the failed bank’s assets, said the FDIC. The FDIC estimates that the cost to its deposit insurance fund will be $57.2 million.