DALLAS--(BUSINESS WIRE)--State Bank of Texas (SBT)—a $740-million asset bank headquartered in Dallas, TX—announced that it has acquired Seaway Bank and Trust Company, headquartered in Chicago, IL. State Bank of Texas entered into a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC) as Receiver to assume all of the deposits of Seaway Bank and Trust Company and to acquire most of its assets following Seaway’s closure by the State of Illinois, Department of Financial and Professional Regulation, Division of Banking. As of September 30, 2016, Seaway Bank and Trust had approximately $361,197,000 in total assets and $307,118,000 in total deposits. This transaction will strengthen State Bank of Texas’ position as the largest Indian-American-owned and -operated bank in the United States with over $1 billion in total assets. This will also take SBT to the Top 25 in size of all minority-owned banks in the entire nation. The acquisition provides a unique opportunity for SBT to expand its operations in the major market of Chicago while retaining its strong lending foothold in the lodging industry. State Bank of Texas is led by Chan Patel, CEO and Chairman, his two sons, Sushil Patel, President, and Rajan Patel, Chief Lending Officer, and its CFO and Executive Vice President, Janna B. Hayes.
The announcement was made by Sushil Patel, president of SBT. “We are confident of the opportunity this acquisition presents,” said Patel. “This is our third acquisition, so our team is experienced in working closely with customers through their transition. Plus, one of our earlier acquisitions was in the Chicago market, so we already have a presence here. As a minority and family-owned bank, we have similar roots as Seaway. We look forward to a prosperous future.”
No immediate changes are anticipated, and Patel says it will be business as usual for customers and employees of both banks. Seaway customers will automatically become customers of SBT, with no need to change their banking relationship. SBT team members will be on hand in Chicago to facilitate the transition.
About State Bank of Texas
State Bank of Texas was founded in 1987 by Chan Patel and continues to be owned and operated by the Patel family. As the largest Indian-American-owned bank in the United States, SBT focuses heavily on lending within the hospitality industry. It has received recognition for strong financial performance, including being named by Sageworks in 2014 and 2015 as the top performing community bank in the United States with assets between $100 million and $10 billion. Following the acquisition of Seaway, SBT’s assets will exceed $1 billion, with loans in excess of $700 million. As of December 31, 2016, SBT had $740 million in total assets with a strong niche lending focus in the lodging industry. Based on return on average assets (ROAA), a metric Warren Buffett reportedly uses to identify the best big-bank investments, State Bank of Texas was one of the top banks with a return on average assets (ROAA) of 6.4 percent as of December 31, 2016. State Bank of Texas intends to continue its formula of providing loans to hard-working entrepreneurs while applying the same conservative fiscal practices that have been responsible for its historical success.
