Thursday, July 27, 2017 || By Michael Romain || @maywoodnews
MB Financial has replaced the defunct Seaway Bank & Trust as Maywood’s largest account holder. During a regular meeting on July 18, the Maywood Board of Trustees voted on a resolution designating MB Financial a public depository for the village.
Less than two years ago, according to village records, Maywood was parking funds from at least nine different accounts at Seaway, including the corporate, water, motor fuel and general fund and payroll accounts. On Nov. 29, 2015, the total ending balance of village funds at Seaway was over $2.5 million. At the time, MB Financial was not an authorized public depository for the village.
As of April 30, 2017, according to village records, the total ending fund balance of village funds at MB Financial was over $8 million. The switch to MB Financial came at the request of Maywood Village Treasurer Steve Kuptz.
Maywood Village Manager Willie Norfleet, Jr. said during an interview earlier this week that roughly all of the village’s money has been withdrawn from Seaway, except perhaps some small funds that may still be held at the bank in “peripheral” accounts, such as the police department’s abandoned money account. But even those may have already transferred over to MB, he said, adding that he would need to see updated statements for confirmation.
The switch marks the end of an era for both the village and Seaway—once the state’s largest black-owned minority bank and the sixth-largest in the country.
In January, the bank was shut down by state regulators and the majority of its assets transferred to the State Bank of Texas. A month later, the Dallas-based bank sold the branches and deposits it had acquired from Seaway to a North Carolina-Based credit union called Self-Help Federal Credit Union.
Maywood had been a long-time client of Seaway, which has a branch at 150 S. 5th Ave., across the street from the Maywood Public Library. Self-Help still operates the branch under the Seaway name even though the bank is effectively defunct.
When Seaway went under earlier this year, Maywood still had hundreds of thousands of dollars in deposits at the bank even though the amount was insured by the Federal Deposit Insurance Corporation, since it was below the $250,000 threshold.
Late last year, however, the village started transferring funds from its corporate, water and escrow accounts from Seaway to Hinsdale Bank.
“Several months ago, the issue was to get us below the level at which funds need to be collateralized,” Maywood Village Manager Willie Norfleet, Jr. said at the time. “Hinsdale Bank came in and we moved money from those accounts and only wired money to Seaway when checks had to be cleared, so if the bank failed we’d be covered by federal insurance.”
In addition to MB Financial and Hinsdale, other public depositories for the village include Amalgamated Bank of Chicago, BMO Harris and US Bank. VFP