Sep 20, 2013 Comments Off on SW Side community bank is resurrected
While hundreds of community banks were taken over by larger institutions following the recent financial crash, an historic small bank that has served immigrants on the Southwest Side is bucking that trend — it’s being resurrected (as it were) as a community-based institution.
The Resurrection Project and the Self-Help Credit Union will celebrate what they’re calling the re-opening of Second Federal Credit Union on Saturday, September 21, with a press conference at 10 a.m. and cultural program at 11 a.m. at 3960 W. 26th.
That’s the location of the main office of Second Federal Savings and Loan, which opened in 1923. As the needs of its immigrant clientele changed over the years, Second Federal pioneered making loans to undocumented immigrants who lacked Social Security numbers. Like many institutions, it was weakened as home values dropped for properties on which it held mortgages.
Last year the FDIC closed Second Federal, rejecting a bid for the bank’s assets and loans by TRP and Self-Help, and sold its three branches and $176 million in deposits to Rosemont-based Wintrust Financial Corp, which has been actively acquiring failing banks in the area.
At the time, U.S. Representative Luis Gutierrez slammed the FDIC’s decision, saying it needlessly placed hundreds of Latino homeowners at risk of foreclosure.