|Norman J. Williams, president of Illinois Service Federal Savings & Loan|
Two banks remain
The two black-owned banks remaining are Illinois Service Federal Savings & Loan, and Seaway Bank. Illinois Service is the oldest bank and has a history of lending to individuals, businesses, churches and non-profit organizations. Much of its lending is home mortgages, but according to the FDIC, more than 14 percent of those mortgages are seriously delinquent. High unemployment and declining property values were to blame for the bank losing $9 million in net losses over a three-year span which wiped out two-thirds of its capital.
While Seaway Bank does more commercial lending, Illinois Service operates much the same way it has for many years. Analysts say it will be difficult for the bank to attract an investor to help save them because it has not kept up with today's banking industry. CEO Norman Williams is working to attract investors but will need $7 million to stay afloat.
If Illinois Service fails, Seaway Bank will be the only surviving black-owned bank in Chicago.
To read more, visit www.chicagobusiness.com/article/20150606/ISSUE01/306069994/only-two-black-owned-banks-are-left-in-chicago-for-this-exec-saving-his-is-personal