Beneficial State Bank has announced the completion of its merger with Pan American Bank. The combined entity will operate as Beneficial State Bank. Robert Hughes, former CEO of Pan Am, will be a director at Beneficial State and president of a new consumer banking unit upon completion of the merger. “Our goal is to balance organic growth and mission-aligned mergers in order to be resilient under modern bank economics while we serve our communities more deeply," said Beneficial State co-CEO Dan Skaff. “The merger with Pan Am is an important step in fulfilling our five year goal of becoming a $3-5 billion bank serving local communities, providing growth opportunities for our colleagues and delivering on our social and environmental impact goals.”
The Nduom family, a group of Ghanaian-American investors, has invested $9 million into Illinois Service Federal Savings & Loan Association, one of the last black-owned banks in Illinois. Brothers Chiefy and Kweku Nduom said the family plans to overhaul the Bronzeville lender, trying to put the bank's close call with failure behind it. Their father, Papa Kwesi Ndoum, is now chairman of the bank. Now that Illinois Service is better capitalized, it plans to focus on its technology, loan portfolio and to reconnecting with its neighborhood. Illinois Service, which remains under regulatory scrutiny, still must confront the challenge of dealing with a portfolio in which 13.4 percent of its loans are seriously delinquent.
Chef and entrepreneur Darryl Burnette is opening a new restaurant in Harlem thanks to a loan from Spring Bank. Burnette had been working as a chef for four years when he decided to pursue his dream of starting his own restaurant. When bigger banks turned him away, he was referred to Spring Bank. Spring Bank is a certified CDFI and B-Corporation, which means it makes small loans for both its bottom line and to help the community. Spring Bank's Harlem branch approved a $60,000 loan for Burnette’s restaurant, Belle Harlem. "The biggest challenge was securing the small loan that helped us get over the final hump,” said Burnette. ”Luckily, they believed in the project, and more importantly, believed in the neighborhood."