Edward Wiliams, a former Harris Bank executive, has teamed up with a former colleague from the bank, Matthew Roth to create Generation Community Bank. They are looking to build the bank at 501 E. 43rd St.– which is currently a vacant lot, according to Williams.
“We hope to open the doors fall 2011. But before we can do that we must get approval to open a bank from the Federal Deposit Insurance Corp. and the Illinois Department of Financial & Professional Regulations,” Williams told the Defender. “I am confident we will win approval, raise the necessary capital and break ground for the bank.”
He added that if approval is granted this year as he expects, construction could then begin shortly afterwards. The FDIC would determine how much capital is needed to open the bank, which he anticipates will probably be a little over $10 million.
Williams, who is Black, and Roth, who is white, will open the bank as a minority-managed business.
“The board will consist of about 15 members and most of them will be African American,” Williams told the Defender. “I will be among those African American board members.”
The board members are also the bank's investors, he explained.
Ald. Pat Dowell, whose 3rd Ward includes the Bronzeville location the bank owners are eyeing, is in favor of the financial institution.
“I am in full support of this project because we need options like every other community when it comes to banking needs,” the alderman said.
Two Black-owned banks, Seaway Bank & Trust Co. and Illinois Service Federal, already have branches in Bronzeville along with other banks, including Chase, Harris and ShoreBank. The other two Black-owned banks in the Chicagoland area are Highland Community Bank and Covenant Bank.
Williams said he is not worried about competing with larger banks.
“The customers we will be seeking are those using currency exchanges and payday loan stores for their financial needs,” he explained. “The other banks do not provide all of the lending we plan on doing.”
GCB plans to offer a variety of loans including those for mortgages, auto, commercial, personal and home equity. The new bank is expected to create 10 to 15 new jobs for the community with a goal of creating more jobs by helping local, small businesses grow.
“We don't want people going to payday loans to borrow a few hundred dollars when they can come to us,” he said.
Williams said Bronzeville was chosen over other communities because “it offers the best chance of us reaching profitability in a short amount of time. If we are not profitable we would not be able to stay open or open more branches.”
He explained that the bank would look to have branches in Engelwood and Austin on the West Side in the future.
In 2003 Williams, 68, retired as an executive vice president after a 40-year stint at Harris.
He said once the bank is up and running, he plans to personally approach neighboring Seaway Bank and Illinois Service Federal to see what partnerships could be formed.
Copyright 2010 Chicago Defender.
