Same commitment. - Seaway Bank and Trust Company

Seaway Bancshares, Inc. 2008 Annual Report 

New name. 

New look. 

Same commitment.

New name. 

New look. 

Same commitment. 

Seaway Bancshares, Inc. 

Financial highlights year ended: december 31, 2008 December 31, 2007 % Change 

Total Stockholders’ Equity $30,140,014 $29,107,889 3.54% 

Return on Average Equity 9.62% 9.92% (3.02)% 

Total Assets $363,575,457 $346,734,308 4.86% 

Seaway Bank and Trust Company 

Financial highlights year ended: december 31, 2008 December 31, 2007 % Change 

Net Income $3,286,353 $3,201,531 2.65% 

Total Deposits $315,295,240 $301,033,769 4.74% 

Total Loans $196,822,548 $181,246,604 8.59% 

Quality Service Statement 

Seaway Bank and Trust Company will develop and deliver products and services that satisfy 

the financial needs of our customers. Our goal is to be recognized as the premier quality 

bank in the community we serve. All marketing, products, systems, processes and training 

will be designed to prevent errors and to provide customers with consistently high levels of 

quality service, which will be monitored continuously. 

If service problems develop, emphasis will be placed on timely and courteous resolution, 

including responsive communication with the customer. Success will be measured in terms 

of our ability to meet customers’ requirements, and employees will be rewarded for quality 

performance. 

Table of Contents 

1 Letter to Our Shareholders 

7 Consolidated Financial Statements Seaway Bancshares, Inc. and Subsidiary 

11 Financial Statements Seaway Bank and Trust Company 

15 Notes to Financial Statements 

23 Independent Auditor’s Report 

24 Board of Directors and Officers 

25 Facilities 

©2009 Seaway Bancshares, Inc. Printed in the U.S.A.

Letter to Our Shareholders 

Without question, 2008 will prove to be a defining 

and historic year for our country. Many 

have even compared the economic crisis to 

that of the Great Depression era. Individuals 

and families lost not just their jobs but they 

lost their homes, as well. Businesses operating 

for years have had to close their doors. 

On the other hand, for the first time in our 

nation’s history, an African-American man 

was elected 44th President of the United 

States. 

Seaway, too, made history as the huge 

Seaway sign installed in 1965 came down 

and a new one with our new bank name and 

logo went up. It was as if the raising of our 

new sign meant the advent of new opportunities. 

Our new charter, proudly displaying our 

new bank name, Seaway Bank and Trust 

Company, gives us a number of competitive 

advantages in the financial market. Among 

them, we now have the ability to lend significantly 

larger amounts to our borrowers, 

and we spend fewer dollars on regulatory 

oversight. 

Being of service to individuals and businesses 

is at the core of the principles on 

which Seaway Bank and Trust Company was 

founded back in 1965. By staying true to 

these values during the past year we enjoyed 

a 2.65% growth in earnings. Maintaining 

our community focus has also enabled us to 

steer clear of the kinds of loans capable of 

negatively impacting the bank’s core goals 

and objectives. Our $196 million loan portfolio, 

our Trust Department bond issues aggregating 

a total principal outstanding of more 

than $6.5 billion, and our 9.62% return on 

average shareholders’ equity at December 

31, 2008 were clear proof that our enduring 

commitment to principles really does work. 

Also, beginning in 2008, Seaway Bank 

and Trust Company participated in the Federal 

Deposit Insurance Corporation’s (FDIC) 

Temporary Liquidity Guarantee Program, 

which ensures that all non-interest bearing 

demand deposit accounts are protected with 

FDIC insurance. Every day at Seaway we see 

Caring. Responsible. Strong. That’s Seaway Bank 

and Trust Company — now and always. 

just how important this kind of commitment 

to the community we serve can be. We understand 

that simply knowing a customer’s 

first name can be reassuring in these difficult 

economic times. 

As we see large commercial banks stack 

their bricks in our neighborhood, we realize 

a striking difference. At Seaway, we are not 

simply in the community; we are of the community. 

We pride ourselves on being a safe 

and secure place for customers to keep their 

money and where shareholders can be confident 

that their share value is being maintained. 

This turned out to be more important 

than ever in 2008. Our individual-based 

approach to lending may be unconventional, 

but it’s proven effective, despite the growing 

wave of foreclosures currently affecting the 

country. 

We have a proud history of opening doors 

and creating opportunities, and last year was 

no exception. Whether it’s opening a stateof-the-art 

facility, assembling a mortgage 

rescue plan, participating in a multi-million 

dollar credit or simply offering customers a 

free gas card in exchange for opening a new 

account, we live up to the promise of our 

new bank name by practicing the art of good 

community stewardship each and every day. 

Caring. Responsible. Strong. That’s 

Seaway Bank and Trust Company — now and 

always. 

Jacoby Dickens 

Chairman of the Board 

Walter E. Grady 

President and Chief Executive Officer 

Jacoby Dickens, Chairman 

of the Board (left) and 

Walter E. Grady, President 

and Chief Executive 

Officer (right). 

1


Times change. Standards do not. 

Commitment To Standards 

Times change. Standards do not. 

The standards Seaway has in place for 

lending and investing have never wavered 

since the bank’s inception. They continue 

to provide a guiding philosophy for every 

decision Seaway makes. They were also the 

key to our success in 2008. 

What defines Seaway’s standards? Sharp 

fiscal discipline, coupled with a communityfirst 

approach to doing business, are two 

primary factors. Seaway has never believed 

in quick fixes or easy money. We have been 

steadfast in our commitment to fiscal prudence. 

We also believe the results of Seaway’s 

steadfast philosophy speak for themselves. 

Seaway’s earnings were up again in 2008, despite 

a severe economic downturn and the collapse of the 

real estate market. 

Seaway’s earnings were up again in 2008, 

despite a severe economic downturn and 

the collapse of the real estate market. It’s a 

remarkable achievement, but Seaway Bank 

President Walter E. Grady insists it shouldn’t 

come as a surprise. 

“Our job is to be of service to this community 

and to be responsible stewards of 

our customers’ hard-earned money,” he says. 

“As long as we stay focused on these objectives, 

success will take care of itself.” Nearly 

a half-century after the founding of the 

bank, Mr. Grady’s point is well taken. 

Seaway is proud of its accomplishments 

in 2008. We’ve served our customers, supported 

our community and set a positive 

example for others in the banking sector. 

It may well be that 2009 marks a shift to 

community-banking values for larger financial 

institutions. 

Refusing to lower our standards is more 

than a pledge. It’s the very foundation of 

our business. 

2

The installation of 

the new Seaway Bank 

and Trust Company 

sign in October, 2008 

was a symbol of Seaway’s 

commitment to 

the community. 

Commitment To Our Community 

Putting community first is one of the core 

principles upon which Seaway Bank and 

Trust Company was founded. 

Seaway’s response to last year’s economic 

downturn provides yet another compelling 

example of the invaluable role a community 

bank plays. Loan delinquencies nationwide 

are at their highest level since 1993, according 

to the Federal Deposit Insurance Corporation. 

True to the spirit of its founders, 

however, Seaway’s response to this challenge 

was to continue to put the community first. 

“I’ve spoken with people who have been 

in business for 30 years and have never experienced 

anything like this,” Bank President 

Walter E. Grady says, referring to the 

overall economic plight faced by many of 

Seaway’s customers. “The question they all 

ask is, What now? Our responsibility is to 

give them an answer, and we do.” 

Seaway answered the call in 2008 by 

working with each client to address specific, 

individual financial needs, whether that 

meant restructuring loans or assembling 

mortgage rescue plans to assist borrowers 

severely impacted by the economic crisis. 

It’s a strategy that mirrors the bank’s approach 

to lending. No two customers are 

alike, and Seaway’s lending team is committed 

to providing the personalized lending 

solutions each client deserves. 

Initiatives like the Management Trainee 

Program, Board of Education Work Study 

and Internship Programs and Bank-at- 

School programs continue to be popular, 

and are all testaments to Seaway’s ongoing 

effort to make a positive difference in the 

community we serve. 

This personal commitment has been 

more than a source of satisfaction for Seaway 

and its employees. It’s also been one of 

the primary keys to our continued success. 

Seaway’s new look is 

applied to the many 

banking products 

offered to customers 

including consumer 

accounts and home 

equity loans. 

Seaway worked with 

customers in 2008 

to restructure loans 

or assemble mortgage 

rescue plans to 

ensure families could 

stay in their homes. 

3


Seaway is always searching for innovative ways to 

improve the quality of services we provide. 

Commitment To Our Employees 

There’s a reason Seaway experiences very 

little staff turnover. Seaway is deeply committed 

to bringing out the best in each of 

its more than 250 employees. We do this by 

finding ways to maximize each employee’s 

abilities while giving them a strong sense 

of purpose that only a community-focused 

institution can provide. 

“We promote from within and develop 

talent where we see it,” Walter E. Grady 

says. 

Commitment To Innovation 

Whether it’s opening a new office or 

investing in the latest in financial services 

technology, Seaway believes that a commitment 

to innovation is an integral part of 

delivering great service. 

Seaway is always searching for innovative 

ways to improve the quality of services we 

provide. In 2008, products like our Platinum 

Money Market Account and our Free 

Student Checking program continued to be 

well-received by customers. Similarly, being 

Seaway is deeply committed. 

4 

Seaway has a number of programs to 

support this effort. Our tuition reimbursement 

program is one example of Seaway’s 

commitment to the professional growth of 

its employees. Helping to pay for an employee’s 

continued education is an expensive 

proposition, but it’s an investment 

Seaway is willing to make in order to help 

every member of our team achieve his or 

her true potential. 

Above all, employees have the satisfaction 

of being part of an organization that 

is dedicated to providing solutions to both 

individual and community challenges. For 

example, Seaway’s well-established community 

involvement is often cited as one of 

the main points of differentiation between 

Seaway and other bank employers. 

Growing professionally while working 

for an institution that is committed to giving 

back — it’s a winning combination, and 

it’s one that continues to serve our employees 

and customers well. 

part of the AllPoint/STARsf debit network 

has made it possible for our customers to 

access their money in thousands of places.

Best of all, our new charter promises to 

make banking at Seaway more convenient 

than ever. State-of-the-art technology meets 

state-of-the-art service: It happens every 

day at Seaway Bank and Trust Company. 

Commitment To Opening Doors 

Seaway Bank and Trust Company has a 

rich history of opening doors and creating 

opportunities. The fact is, Seaway was created 

by a group of savvy entrepreneurs who 

were committed to giving opportunities to 

city residents that other banks refused to 

provide. 

The proud tradition of opening doors 

continues today. We opened the doors to 

a $2 million state-of-the-art facility in the 

Roseland neighborhood, thus planting the 

first seeds of community revitalization. 

We’ve opened the doors to financial literacy 

with popular youth initiatives like our 

Bank-at-School program as well as periodic 

workshops in area churches. 

Above all, our 1% Down Mortgage 

program has a long history of opening the 

door to homeownership for individuals 

who might otherwise have struggled to 

achieve this goal. 

Richard S. Abrams, 

Executive Vice 

President and Chief 

Operating Officer 

(right), works hard to 

open doors and create 

opportunity for 

Seaway customers. 

Opening doors and creating opportunities: 

They are the twin pillars on which Seaway’s 

philosophy has been built. If anything, 

2008 proved that philosophy to be as sound 

as ever. 

Commitment To Personal Service 

It’s a familiar sight at Seaway to see an employee 

from one department assisting a customer 

who is seeking another department. 

Wherever personal service can be rendered, 

Seaway is committed to providing it. We 

diligently observe market conditions in 

order to create timely products and services 

that will benefit our customers most. 

We’re constantly setting the bar higher 

and striving to improve the level of personal 

service we provide. Our officers routinely 

visit with our business customers to ensure 

their personal and business financial needs 

are being met. Officers also regularly offer 

guidance on developing business plans. And 

in 2008, we customized many mortgage 

rescue plans to help customers cope with 

the mortgage crisis. 

What will exceptional customer service 

mean in 2009? Only time will tell, but 

Seaway has a proud history of rising to the 

challenge. You might say we’re driven to be 

the best community bank we can be. 

Today’s banking consumers 

want the convenience 

of accessing 

financial information 

quickly. Seaway’s online 

banking service 

provides an easy way 

to see your balances, 

pay bills and more. 

5


Walter E. Grady, 

President and CEO, 

looks on as students, 

Diamond Simpson 

(left) and Tyriq Amerson 

(right) work out 

a problem at John T. 

Pirie Fine Arts and 

Academic Center 

where Seaway sponsors 

a Bank-at-School 

program. 

Commitment To The Future 

Forecasting the future of banking is not 

an easy task. “It’s difficult to predict the 

outcome,” Mr. Grady says of his industry’s 

prospects in 2009. “The fact is we have to 

be ready for anything.” 

Change and innovation will be motivated by 

Seaway’s desire to “do well by doing good.” 

Adjustments to the new realities in the 

country’s financial sector will be an important 

consideration in 2009. And yet, Seaway’s 

management believes that any changes 

to policy Seaway makes going forward 

should be minimal. It’s not the first financial 

storm Seaway has weathered, and the bank 

has been well served by its mission. This was 

especially true last year. 

Seaway’s positive earnings report from 

2008 sends a clear signal to customers that 

the bank is strong and secure. The bank 

is well capitalized, has money to lend and 

remains as committed as ever to meeting 

the needs and exceeding the expectations of 

our valued customers. 

Still, Seaway isn’t about to rest on its past 

achievements. As ever, change and innovation 

will be motivated by Seaway’s desire 

to “do well by doing good” and to make a 

positive difference in the community. 

New name. New look. Same commitment. 

You might even say the more things 

change, the more they remain the same at 

Seaway Bank and Trust Company. 

New name. New look. Same commitment. 

6


Seaway Bancshares, Inc. and Subsidiary 

Consolidated Statements of Condition 

For the Years Ended December 31, 2008 and 2007 

Assets 

2008 2007 

Cash and due from banks $ 14,545,169 $ 9,652,122 

Interest Bearing Balances 253,814 8,760,715 

Total Cash and cash equivalents 14,798,983 18,412,837 

Securities available-for-sale (Note 4) 137,928,610 132,414,918 

Securities held-to-maturity (Note 4) 685,493 654,172 

Loans, net of unearned discount (Note 5) 196,822,548 181,246,604 

Less-Allowance for possible loan losses (Note 6) (2,160,958) (1,840,318) 

Loans, net 194,661,590 179,406,286 

Premises and equipment, net (Note 7) 4,789,088 4,872,806 

Other real estate owned 389,032 231,532 

Intangible Assets (Note 19) 90,000 300,000 

Other assets (Note 9) 10,232,661 10,441,757 

Total Assets $ 363,575,457 $ 346,734,308 

Liabilities and Stockholders’ Equity: 

Deposits (Note 8) 

Non-interest-bearing deposits $ 36,583,341 $ 46,822,228 

Interest-bearing deposits 278,697,521 253,326,079 

Total Deposits 315,280,862 300,148,307 

Federal funds purchased and other borrowed funds 7,078,790 6,125,000 

Long-term Debt Subordinated Debentures (Note 10) 6,186,000 6,186,000 

Other liabilities (Note 9 and 13) 4,889,791 5,167,112 

Total Liabilities $ 333,435,443 $ 317,626,419 

Commitments and Contingencies (Note 8, 14 and 17) 

Stockholders’ Equity 

Common stock (Note 11) 301,513 301,513 

Surplus 3,915,994 3,915,994 

Undivided profits (Note 12) 25,161,822 24,875,756 

Accumulated Other Comprehensive Income 760,685 14,626 

Total Stockholders’ Equity 30,140,014 29,107,889 

Total Liabilities and Stockholders’ Equity $ 363,575,457 $ 346,734,308 

The accompanying Notes to Financial Statements are an integral part of these statements. 

7



Consolidated Statements of Income 


Interest Income 

2008 2007 

Interest and fees on loans $ 11,982,006 $ 11,929,081 

Interest on investment securities 

US Government Obligations & Treasury Securities 

Agency Obligations 5,902,903 5,649,897 

Mortgage-Backed Securities 417,510 410,289 

Obligations of state and political subdivisions 148,519 65,748 

Other securities 163,592 130,814 

Interest on federal funds sold and other interest-bearing balances 5,013 463,127 

Total Interest Income $ 18,619,543 $ 18,648,956 

Interest Expense 

Interest on time deposits $100,000 or more 4,918,108 5,385,515 

Interest on other deposits 1,387,820 2,241,412 

Interest on Long-term Debentures 397,760 397,760 

Interest on federal funds purchased and other borrowed funds 292,529 353,081 

Total Interest Expense 6,996,217 8,377,768 

Net interest income 11,623,326 10,271,188 

Provision for possible loan losses (Note 6) (995,000) (80,000) 

Net interest income after provision for possible loan losses $ 10,628,326 $ 10,191,188 

Other Income 

Service charges on deposit accounts 2,997,496 3,073,580 

Other operating income 6,610,010 5,946,556 

Gain on sale of investment securities 145,197 — 

Total Other Income $ 9,752,703 $ 9,020,136 

Other Expenses: 

Salaries and employee benefits (Note 15 and 16) 10,341,935 10,052,723 

Occupancy expense of Bank premises (Note 7) 2,729,043 2,396,680 

Other operating expenses 4,426,424 3,999,309 

Total Other Expenses 17,497,402 16,448,712 

Income before income taxes 2,883,627 2,762,612 

Applicable income taxes (Note 9) (34,700) (5,000) 

Net Income $ 2,848,927 $ 2,757,612 

Net Income Per Share (Note 11) $ 9.45 $ 9.15 


8


Consolidated Statements of Cash Flows 


Operating Activities 

2008 2007 

Net Income $ 2,848,927 $ 2,757,612 

Adjustments to reconcile net income to net cash 

provided from (used by) operating activities: 

Provision for loan losses 995,000 80,000 

Provision for depreciation and amortization 666,869 567,843 

Amortization of investment security premiums 14,109 42,207 

Accretion of investment security discounts (148,847) (47,462) 

Net change in deferred income taxes (48,370) (6,275) 

Net (increase) decrease in interest receivable (83,752) 176,975 

Net (decrease) increase in interest payable (511,052) 405,385 

Net decrease (increase) in other assets 441,095 (71,647) 

Net increase in other liabilities 1,082,582 935,435 

Net cash provided from operating activities $ 5,256,561 $ 4,840,073 

Investing activities 

Proceeds from sales and maturities of investment securities available for sale 92,886,740 15,265,000 

Principal collected on investment securities available for sale 2,707,305 3,018,158 

Principal collected on investment securities held for maturity 182,705 119,957 

Purchases of investment securities available for sale (100,972,999) (17,720,909) 

Purchases of investment securities held to maturity (214,026) (113,932) 

Net increase in long-term loans (16,250,517) (6,799,446) 

Purchases of premises and equipment (net) (575,607) (847,033) 

Net increase in other real estate (157,500) (160,651) 

Net cash (used by) investing activities $ (22,393,899) $ (7,238,856) 

Financing activities 

Net decrease in non-interest-bearing deposits (10,238,887) (23,380,488) 

Net increase in interest-bearing deposits 25,371,442 10,481,239 

Net increase (decrease) in federal funds purchased and other borrowed funds 953,790 (2,923,205) 

Cash Dividends paid (2,562,861) (2,412,104) 

Net cash provided from (used by) financing activities 13,523,484 (18,234,558) 

Net decrease in Cash and Cash Equivalents (3,613,854) (20,633,341) 

Cash And Cash Equivalents At Beginning of Year 18,412,837 39,046,178 

Cash And Cash Equivalents At Year-End $ 14,798,983 $ 18,412,837 

Interest Paid $ 6,996,217 $ 8,377,768 

Income Taxes Paid $ 9,000 $ 5,000 


9



Consolidated Statements of Change in Stockholders’ Equity 


Accumulated 

Stockholders’ 

Other 

Common undivided Comprehensive Total 

Stock Surplus ProfiTS income eQuity 

Balance December 31, 2006 $ 301,513 $ 3,915,994 $ 24,530,248 $ (2,270,633) $ 26,477,122 

Dividends - $ 8.00/Share — — (2,412,104) — (2,412,104) 

Retirement of common stock 

Comprehensive Income 

Net Income — — 2,757,612 — 2,757,612 

Other Comprehensive Income 

Unrealized Gain on Available 

for Sale Securities, Net of Tax — — — 2,285,259 2,285,259 

Balance December 31, 2007 $ 301,513 $ 3,915,994 24,875,756 14,626 $ 29,107,899 

Dividends $8.50/Share — — (2,562,861) — (2,562,861) 


Net Income — — 2,848,927 — 2,848,927 



for Sale Securities, Net of Tax — — — 746,059 746,059 

Balance December 31, 2008 $ 301,513 $ 3,915,994 $ 25,161,822 $ 760,685 $ 30,140,014 


10


Statements of Condition 


Assets 

2008 2007 

Cash and due from banks $ 14,545,169 $ 9,649,642 

Interest Bearing Balances 253,814 8,760,715 

Total Cash and cash equivalents 14,798,983 18,410,357 

Securities available for sale (Note 4) 137,928,610 132,414,918 

Securities held-to-maturity (Note 4) 685,493 654,172 

Loans, net of unearned discount (Note 5) 196,822,548 181,246,604 

Less-Allowance for possible loan losses (Note 6) (2,160,958) (1,840,318) 

Loans, net 194,661,590 179,406,286 

Premises and equipment, net (Note 7) 4,930,945 5,014,663 

Other real estate owned 389,032 231,532 

Intangible assets (Note 19) 90,000 300,000 

Other assets (Note 9) 10,037,674 10,226,933 

Total Assets $ 363,522,327 $ 346,658,861 

Liabilities And Stockholders’ Equity 

Deposits (Note 8) 

Non-interest-bearing deposits $ 36,597,719 47,707,690 

Interest-bearing deposits 278,697,521 253,326,079 

Total Deposits 315,295,240 301,033,769 

Federal funds purchased and other borrowed funds 7,078,790 6,125,000 

Other liabilities (Note 9) 4,896,836 4,313,960 

Total Liabilities $ 327,270,866 $ 311,472,729 

Commitments & Contingencies (Note 8 and 17) 

Stockholders’ Equity 

Common stock (Note 11) 851,010 851,010 

Surplus 7,053,958 7,053,958 

Undivided profits (Note 12) 27,585,808 27,266,538 

Accumulated other comprehensive income 760,685 14,626 

Total Stockholders’ Equity 36,251,461 35,186,132 

Total Liabilities and Stockholders’ Equity $ 363,522,327 $ 346,658,861 


11



Statements of Income 


Interest Income 

2008 2007 

Interest and fees on loans $ 11,982,006 $ 11,929,081 

Interest on investment securities 

United States Government Obligations: 

US Government and Treasuries 5,902,903 5,649,897 

Mortgage-Backed Securities 417,510 410,289 

Obligations of state and political subdivisions 148,519 65,748 

Other securities 151,632 118,854 

Interest on federal funds sold and on other interest-bearing balances 5,013 463,127 

Total Interest Income $ 18,607,583 $ 18,636,996 

Interest Expense 

Interest on time deposits $100,000 or more 4,918,108 5,385,515 

Interest on other deposits 1,387,820 2,241,412 

Interest on federal funds purchased and other borrowed funds 292,529 353,081 

Total Interest Expense 6,598,457 7,980,008 

Net interest income 12,009,126 10,656,988 

Provision for possible loan losses (Note 6) (995,000) (80,000) 

Net interest income after provision for possible loan losses $ 11,014,126 $ 10,576,988 

Other Income 

Service charges on deposit accounts 2,997,496 3,073,580 

Other operating income 6,610,010 5,946,556 

Gain on sale of investment securities 145,197 — 

Total Other Income $ 9,752,703 $ 9,020,136 

Other Expenses 

Salaries and employee benefits (Notes 15 and 16) 10,341,935 10,052,723 

Occupancy expense of Bank premises (Note 7) 2,728,593 2,396,680 

Other operating expenses 4,375,248 3,941,190 

Total Other Expenses 17,445,776 16,390,593 

Income before income taxes 3,321,053 3,206,531 

Applicable income taxes (Note 9) (34,700) (5,000) 

Net Income $ 3,286,353 $ 3,201,531 

Net Income Per Share (Note 11) $ 38.62 $ 37.62 


12


Statements of Cash Flows 


Operating Activities 

2008 2007 

Net Income $ 3,268,353 $ 3,201,531 

Adjustments to reconcile net income to net cash 

provided from (used by) operating activities: 

Provision for loan losses 995,000 80,000 

Provision for depreciation and amortization 666,869 567,843 

Amortization of investment security premiums 14,109 42,207 

Accretion of investment security discounts (148,847) (47,462) 

Net change in deferred income taxes (48,370) (6,275) 

Net (increase) decrease in interest receivable (83,752) 176,975 

Net (decrease) increase in interest payable (511,052) 405,385 

Net decrease (increase) in other assets 441,095 (44,952) 

Net increase in other liabilities 1,940,942 754,577 

Net cash provided from operating activities $ 6,534,347 $ 5,129,829 

Investing activities 

Proceeds from sales and maturities of investment securities available for sale 92,886,740 15,265,000 

Principal collected on investment securities available for sale 2,707,305 3,018,158 

Principal collected on investment securities held for maturity 182,705 119,957 

Purchases of investment securities available for sale (100,972,999) (17,720,909) 

Purchases of investment securities held to maturity (214,026) (113,932) 

Net increase in long-term loans (16,250,517) (6,799,446) 

Purchases of premises and equipment (net) (575,607) (847,033) 

Net increase in other real estate (157,500) (160,651) 

Net cash (used by) investing activities $ (22,393,899) $ (7,238,856) 

Financing activities 

Net decrease in non-interest-bearing deposits (11,109,971) (23,284,453) 

Net increase in interest-bearing deposits 25,371,442 10,481,239 

Net increase (decrease) in federal funds purchased and other borrowed funds 953,790 (2,923,205) 

Cash Dividends paid (2,967,083) (2,800,000) 

Net cash provided from (used by) financing activities 12,248,178 (18,526,419) 

Net decrease in Cash and Cash Equivalents (3,611,374) (20,635,446) 

Cash And Cash Equivalents At Beginning of Year 18,410,357 39,045,803 

Cash And Cash Equivalents At Year-End $ 14,798,983 $ 18,410,357 

Interest Paid $ 6,996,217 $ 7,980,008 


13



Statements of Change in Stockholders’ Equity 


Accumulated 

Stockholders’ 

Other 

Common undivided Comprehensive Total 

Stock Surplus ProfiTS income eQuity 

Balance December 31, 2006 $ 851,010 $ 7,053,958 $ 26,865,007 $ (2,270,633) $ 32,499,342 

Dividends - $32.90/Share — — (2,800,000) — (2,800,000) 


Net Income — — 3,201,531 — 3,201,531 



for Sale Securities, Net of Tax — — — 2,285,259 2,285,259 


Dividends - $34.86/Share — — (2,967,083) — (2,967,083) 


Net Income — — 3,286,353 — 3,286,353 



for Sale Securities, Net of Tax — — — 746,059 746,059 



14

Notes to Financial Statements 


Note 1 — Summary of Significant Accounting and Reporting Policies 

The financial reporting and accounting policies of Seaway Bancshares, Inc. (the 

“Corporation”) and its subsidiary, Seaway Bank and Trust Company (the “Bank”), 

conform to accounting principles generally accepted in the United States and to 

general practices within the banking industry. The following is a summary of the 

significant accounting policies. 

NATURE OF OPERATIONS 

Seaway Bancshares, Inc. is a bank holding company whose principal activity is 

the ownership and management of its wholly-owned subsidiary Seaway Bank 

and Trust Company. The Bank generates commercial, mortgage and consumer 

loans and receives deposits from customers located primarily in Chicago, Illinois 

and the surrounding area. On December 30, 2007, the Illinois Department of 

Financial and Professional Regulation (IDFPR) approved the conversion of 

Seaway National Bank of Chicago to a bank chartered by the State of Illinois. 

IDFPR issued a charter to the converting bank under the name of Seaway Bank 

and Trust Company. The Bank is subject to regulation by the Federal Deposit 

Insurance Corporation. 

PRINCIPLES OF CONSOLIDATION 

The accompanying consolidated financial statements include the accounts of the 

Corporation and the Bank. All intercompany accounts and transactions have been 

eliminated in the consolidated financial statements. 

In accordance with Financial Accounting Standards Board Interpretation 

No. 46, (R),“Consolidation of Variable Interest Entities” [“FIN 46 (R)”], the 

accompanying consolidated financial statements do not include the accounts of 

a wholly-owned financed subsidiary (the “Trust”). The Trust was formed for the 

sole purpose of issuing Trust Preferred securities and, in turn, purchasing subordinated 

debentures from the Corporation. 

Under the provisions of FIN 46 (R), the Trust is considered a “Variable Interest 

Entity” (“VIE”), which can only be consolidated if the Corporation is subject 

to a majority of the risk of loss from the VIE activity or is entitled to receive a 

majority of the entity’s residual returns. The design of the Trust, which is very 

common in the banking industry, is such that the Corporation is neither subject 

to the majority of risk of loss nor entitled to receive the majority of any residual 

returns. As a result, the Trust is not consolidated. 

The Corporation does, however, report the subordinated debentures sold to 

the Trust as a liability in the Consolidated Balance Sheets and associated interest 

expense in the Consolidated Statements of Income. 

USE OF ESTIMATES 

The preparation of financial statements in conformity with generally accepted 

accounting principles in the United States of America requires management to 

make estimates and assumptions that affect the reported amounts of assets and 

liabilities and disclosure of contingent assets and liabilities at the date of the financial 

statements and the reported amounts of revenue and expenses during the 

reporting period. Actual results could differ from those estimates. 

Classification Accounting Treatment 

Held-to-Maturity Carried at Amortized Cost 

Trading Securities Carried at fair value with unrealized holding 

gains and losses included in earnings 

Available-For-Sale Carried at fair value with unrealized holding gains 

and losses excluded from earnings, and reported as a 

separate component of Shareholders’ equity, net of tax, 

as accumulated other comprehensive income 

The decision to purchase securities is based on a current assessment of expected 

economic conditions including the interest rate environment. The determination 

to sell such securities is based on management’s assessment of changes in 

economic or financial market conditions, interest rate risk and balance sheet and 

liquidity positions. The adjusted cost of the specific security sold is the basis for 

determining gains and losses. 

LOANS 

The Corporation’s loan portfolio includes residential and commercial mortgages 

and commercial and consumer loan products. Loans are stated at unpaid 

principal balances less the allowance for loan losses and net deferred loan fees and 

unearned discounts. Unearned discount is recognized as income over the terms 

of the loan by the sum-of-the-months digit method, the result of which is not 

materially different from that obtained by using the interest method. Interest on 

other loans is reported on the accrual basis throughout the terms of the loans. 

Loans are placed on a non-accrual (cash) basis for recognition of interest 

income when interest earned in excess of ninety days is delinquent or principal 

is delinquent in excess of ninety days and the loan is either not well collateralized 

or is in the process of collection. The non-recognition of interest does not 

constitute forgiveness of the interest. 

ALLOWANCE FOR LOAN LOSSES 

The allowance for loan losses is maintained at a level that, in management’s judgment, 

is adequate to provide for estimated probable losses from loans. The amount 

of the allowance is based on management’s formal review and analysis of potential 

losses, as well as prevailing economic conditions. The allowance is increased by 

provisions for losses, which are charged to earnings and reduced by charge-offs, 

net of recoveries. 

The allowance consists of specific, general, and unallocated components. The 

specific component relates to loans that are classified as doubtful, substandard, or 

special mention. For such loans that are also classified as impaired, an allowance 

is established when the discounted cash flows (or collateral value or observable 

market price) of the impaired loan is lower than the carrying value of that loan. 

The general component covers non-classified loans and is based on historical loss 

experience adjusted for qualitative factors. An unallocated component is maintained 

to cover uncertainties that could affect management’s estimate of probable 

losses. 

While management uses available information to recognize losses on loans, 

further reduction in the carrying amounts of loans maybe necessary based on 

changes in local economic conditions. It is reasonably possible that the estimated 

losses on loans may change materially in the near term. However, the amount of 

the change that is reasonably possible cannot be estimated. 

IMPAIRMENT OF LOANS 

Loans are considered impaired when it is probable that the total amount due, 

including accrued interest, will not be collected according to the contracted 

terms and schedules of the Loan Agreement. Income related to impaired loans is 

recognized when earned, unless the loan has also been placed on a non-accrual 

(cash) basis, for the recognition of interest income. 

FEES RELATED TO LENDING ACTIVITIES 

Loan origination fees and direct loan origination costs that are incurred on a 

specific loan are offset against each other and the net amount is deferred and 

recognized over the life of the loan as an adjustment of the loans’ yield. Commitment 

fees and direct loan origination costs that are incurred to make a commitment 

to originate a specific loan shall be offset against each other and only the 

net amount is deferred and recognized over the life of the loan as an adjustment 

of the loans’ yield. 

PREMISES AND EQUIPMENT 

Premises and equipment are stated at cost less accumulated depreciation. Depreciation 

is computed on the straight-line method over the estimated useful lives of 

the related assets, ranging from 3 to 40 years. 

INCOME TAXES 

Prior to 2001 the Corporation filed a consolidated Federal Income Tax return. 

Amounts provided for income taxes were based on income reported for financial 

statement purposes. Provisions for deferred income taxes were made as a result of 

timing differences between the period in which certain income and expenses are 

recognized for financial reporting purposes and the period in which they affect 

taxable income. The principal items causing these timing differences were the 

provision for possible loan losses and depreciation. Effective January I, 2001, the 

Corporation and the Bank jointly elected to be treated as an S Corporation for 

federal income tax purposes. As an S Corporation, both the Corporation and the 

Bank are liable for federal corporate level income taxes on certain “built-in gains” 

existing at December 31, 2000, which are recognized after that date and any 

applicable state corporate level income taxes, (including the Illinois Replacement 

Tax). As a further consequence of the S Corporation election, both the Corporation 

and the Bank were required to revalue deferred tax assets and liabilities at the 

lower statutory tax rates applicable to S Corporations. 

In June 2006, the Financial Accounting Standards Board (“FASB”) issued 

FASB Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in 

Income Taxes-an interpretation of FASB Statement No. 109” (“FIN 48”). FIN 

48 prescribes a recognition threshold and measurement process for recording in 

the financial statements uncertain tax positions taken or expected to be taken in a 

tax return in accordance with SFAS No. 109 “Accounting for Income Taxes.” Tax 

positions must meet a more-likely-than-not recognition threshold at the effective 

date to be recognized upon the adoption of FIN 48 and in subsequent periods. 

The accounting provision of FIN 48 was effective for the Corporation beginning 

January 1, 2007. The impact of adoption on the Bank’s financial position and 

15


results of its operations was not material. 

EARNINGS PER SHARE 

Earnings per share is computed by dividing income by the weighted average 

number of shares outstanding during the period. 

CASH FLOW REPORTING 

The Corporation uses the indirect method to report cash flows from operating 

activities. Under this method, net income is adjusted to reconcile to net cash 

flow from operating activities. Net reporting cash transactions is used when the 

balance sheet items consist predominantly of maturities of three months or less, 

or where otherwise permitted. Other items are reported gross. Cash and cash 

equivalents consist of cash and due from banks. 

Derivatives 

The Financial Accounting Standard Board (FASB) Statement No. 133, Accounting 

for Derivative Instruments and Hedging Activities, as amended, established 

accounting and reporting standards for derivatives. These standards require that all 

derivatives be recognized at their fair value as either assets or liabilities on the balance 

sheet and specify the accounting for changes in fair value depending upon 

the intended use of the derivative (FAS No. 133, as amended, in the year 2001). 

The Corporation’s utilization of derivative instruments for trading or non-trading 

is minimal, and the provisions of these standards are not applied because the 

impact on the Corporation’s financial statements is not material. 

Goodwill 

The Corporation adopted FAS 142 effective January 1, 2002. The Corporation 

periodically evaluates goodwill for impairment by comparing the carrying value 

to implied fair value. The fair value is determined using a reasonable estimate of 

future cash flows from operations and a risk adjusted discount rate to compute a 

net present value of future cash flows. Information pertaining to the accounting 

for goodwill is presented in Note 19. 

New accounting pronouncement 

The Corporation adopted SFAS No. 157, Fair Value Measurements (SFAS 157) 

effective January 1, 2008. SFAS 157 defines fair value, establishes a framework 

for measuring fair value and expands disclosure of fair value measurements. The 

adoption of SFAS 157 did not have a material impact on the consolidated financial 

statements or results of operations of the Corporation. In accordance with 

Financial Accounting Standards Board Staff Position (FSP) No. 157-2, “Effective 

Date of FASB Statement No. 157,” the Corporation will delay application of 

SFAS 157 for non-financial assets and non-financial liabilities such as goodwill, 

other intangibles, real estate owned, and repossessed assets until January 1, 2009. 

SFAS 157 applies to all assets and liabilities that are measured and reported on a 

fair value basis. 

Note 2 — Fair Value of Financial Instruments 

The following methods and assumptions were used to estimate the fair value of 

each class of financial instruments for which it is practicable to estimate such 

value: 

Cash and short-term investments 

For those short-term instruments, the carrying amount is a reasonable estimate of 

fair value. 

Investment securities 

Fair value equals the quoted market price, if available. If a quoted market price is 

not available, fair value is estimated using quoted market prices for similar investment 

securities. 

Loans 

The fair value is estimated by discounting future cash flows using the appropriate 

rate from the treasury yield curve, adjusted for credit risk and allocated expense. 

Deposit liabilities and short-term borrowings 

The fair value of demand deposits, savings accounts, NOW and money market 

deposits is the amount payable on demand at the reporting date. The fair value of 

fixed maturity certificates of deposit is estimated by discounting future cash flows 

using the appropriate rate from the treasury yield curve adjusted for allocated 

expense. For short-term borrowings the carrying amount is a reasonable estimate 

of fair value. 

Long-term debt and securities sold not owned 

The fair value of long-term debt and securities sold not owned are estimated by 

discounting future cash flows using an appropriate rate from the treasury yield 

curve adjusted for allocated expenses. 

Core Deposit Intangibles 

The fair value of core deposit intangibles is the present value of the projected 

cash flow of core deposits discounted at the appropriate rate from the treasury 

yield curve adjusted for allocated expenses and service charge income. 

December 31, 2008: consolidated B bank Only 

estimated Fair Value Approximate Carrying Value estimated Fair Value Approximate Carrying Value 

Financial Assets: 

Cash and Short-term Investments $ 14,799,000 $ 14,799,000 $ 14,799,000 $ 14,799,000 

Investment Securities 137,546,000 137,546,000 137,546,000 137,546,000 

Loans 197,755,000 196,823,000 197,755,000 196,823,000 

Unallocated Reserves for loan losses — (2,161,000) — (2,161,000) 

Loans, Net 197,755,000 194,662,000 197,755,000 194,662,000 

Total Financial Assets $ 350,100,000 $ 347,007,000 $ 350,100,000 $ 347,007,000 

Financial Liabilities 

Deposits 321,764,000 315,281,000 321,778,000 315,295,000 

Short-Term Borrowings 1,079,000 1,079,000 1,079,000 1,079,000 

Long-Term Debt 12,282,000 12,186,000 9,096,000 6,000,000 

Total Financial Liabilities 335,125,000 328,546,000 331,953,000 322,374,000 

Core Deposit Intangibles — — — — 

Fixed Assets and Net Other Assets and Liabilities 11,679,000 11,679,000 11,609,000 11,609,000 

Net Total Asset Value $ 26,654,000 $ 30,140,000 $ 29,756,000 $ 36,242,000 

16

Note 2, continued 

December 31, 2007: consolidated B bank Only 

estimated Fair Value Approximate Carrying Value estimated Fair Value Approximate Carrying Value 

Financial Assets: 

Cash and Short-term Investments $ 18,463,000 $ 18,463,000 $ 18,462,000 $ 18,462,000 

Investment Securities 131,951,000 131,951,000 131,951,000 131,951,000 

Loans 177,571,000 181,246,000 177,571,000 181,246,000 

Unallocated Reserves for loan losses — (1,840,000) — (1,840,000) 

Loan, Net 177,571,000 179,406,000 177,571,000 179,406,000 

Total Financial Assets $ 327,985,000 $ 329,820,000 $ 327,984,000 $ 329,819,000 

Financial Liabilities 

Deposits 300,148,000 300,148,000 301,034,000 301,034,000 

Short-Term Borrowings 1,125,000 1,125,000 1,125,000 1,125,000 

Long-Term Debt 10,660,000 11,186,000 5,597,000 5,000,000 

Total Financial Liabilities 311,933,000 312,459,000 307,756,000 307,159,000 

Core Deposit Intangibles 12,631,000 — 12,691,000 — 

Fixed Assets and Net Other Assets and Liabilities 11,747,000 11,747,000 12,528,000 12,528,000 

Net Total Asset Value $ 40,430,000 $ 29,108,000 $ 45,447,000 $ 35,188,000 

Note 3 — Fair Value Measurements 

Effective January 1, 2008 the Corporation adopted the provisions of SFAS No. 

157, “Fair Value Measurements” for assets and liabilities measured and reported at 

fair value. SFAS 157 defined fair value, establishes a framework for measuring fair 

value and expands disclosures about fair value measurements. 

SFAS 157 defines fair value as the price that would be received to sell an asset 

or paid to transfer a liability in an orderly transaction between market participants. 

SFAS 157 requires the use of valuation techniques that are consistent with 

the market approach, the income approach and/or the cost approach. Inputs to 

valuation techniques refer to the assumptions that market participants would 

use in pricing the asset or liability. Inputs may be observable, meaning those that 

reflect the assumptions market participants would use in pricing the asset or 

liability developed based on market data obtained from independent sources, or 

unobservable, meaning those that reflect the reporting entity’s own assumptions 

about the assumptions market participants would use in pricing the asset or liability 

developed based on the best information available in the circumstances. In 

that regard, SFAS 157 established a fair value hierarchy for valuation inputs that 

gives the highest priority to quoted prices in active markets for identical assets or 

liabilities and the lowest priority to unobservable inputs. The fair value hierarchy 

is as follows: 

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active 

markets that the entity has the ability to access as of the measurement date. 

Level 2: Significant other observable inputs other than Level 1 prices such as 

quoted prices for similar assets or liabilities; quoted prices in markets that are not 

active; or other inputs that are observable or can be corroborated by observable 

market data. 

Level 3: Significant unobservable inputs that reflect a reporting entity’s own 

assumptions about the assumptions that market participants would use in pricing 

an asset or liability. 

A description of the valuation methodologies used for assets and liabilities 

measure at fair value, as well as the general classification of such instruments 

pursuant to the valuation hierarchy, is set forth below. 

Securities Available for Sale 

When available, quoted market prices are used to determine the fair value of 

investment securities and such items are classified within Level 1 of the fair value 

hierarchy. An example is U.S. Treasury securities. For other securities, the Corporation 

determines fair value based on various sources and may apply matrix pricing 

with observable prices for similar bonds where a price for the identical bond 

is not observable. Securities measured at fair value by such methods are classified 

as Level 2. Certain securities are not valued based on observable transactions and 

are, therefore, classified as Level 3. The fair value of these securities is based on 

management’s best estimates. 

Impaired Loans 

Impaired loans are evaluated and valued at the time the loan is identified as 

impaired, at the lower cost of fair value. Fair value is measured based on the value 

of the collateral securing these loans and is classified at a level 3 in the fair value 

hierarchy. Collateral may be real estate and/or business assets including equipment, 

inventory and/or accounts receivable and is determined based on appraisals 

by qualified licensed appraisers hired by the Corporation. Appraised and reported 

values may be discounted based on management’s historical knowledge, changes 

in market conditions from the time of valuation, and/or management’s expertise 

and knowledge of the client and client’s business. 

Loans Held for Sale 

Loans held for sale are carried at the lower of cost or market value. The fair value 

of loans held for sale is based on what secondary markets are currently offering 

for portfolios with similar characteristics. As such, the Corporation classifies loans 

subjected to nonrecurring fair value adjustments as Level 2. 

Assets and Liabilities Recorded at Fair Value on a Recurring Basis 

The following table summarizes assets and liabilities measured at fair value on a recurring basis as of December 31, 2008, segregated by the level of the valuation inputs 

within the fair value hierarchy utilized to measure fair value. 

Fair Value Measurements at December 31, 2008 Using: 

December 31, 2008 Quoted Prices in Active Significant Other Significant 

markets for Identical Observable Inputs unobservable Inputs 

Assets (Level 1) (Level 2) (Level 3) 

Securities available for sale 137,928,610 1,147,508 136,781,102 — 

Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis 

The Corporation may be required, from time to time, to measure certain assets and liabilities at fair value on a nonrecurring basis in accordance with U.S. generally accepted 

accounting principles. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. 

Assets measured at fair value on a nonrecurring basis are included in the table below. 

Fair Value Measurements at December 31, 2008 Using: 

December 31, 2008 Quoted Prices in Active Significant Other Significant 

markets for Identical Observable Inputs unobservable Inputs 

Assets (Level 1) (Level 2) (Level 3) 

Impaired loans 1,000,000 — — 1,000,000 

Loans held for sale 220,918 — 220,918 — 

Impaired loans with a carrying amount of $1,060,000 were written down to the fair value $1,000,000 less cost to sell of $100,000 resulting in a valuation allowance of 

$160,000 included in the allowance for loan losses. 

17


Note 4 — Investment Securities 

The following is a summary of investment securities classified as available-for-sale at December 31, 2008: 

Amortized Cost Gross Unrealized Gross Unrealized F fair Value 

holding Gains H holding Losses 

Equity Securities $ 1,068.453 79,055 — $ 1,147,508 

United States Government Agencies 122,760,860 889,943 — 123,650,803 

Obligations of State and Political Subdivisions 728,934 12,747 — 741,681 

Mortgage-Backed Securities 11,477,493 29,565 — 11,507,058 

Other Investment Securities 1,100,000 — (218,440) 881,560 

Total $ 137,135,740 1,011,310 (218,440) $ 137,928,610 

The following is a summary of Investment securities classified as held-to-maturity at December 31, 2008: 



Other Investment Securities $ 685,493 — — $ 685,493 

Total $ 685,493 — — $ 685,493 

At December 31, 2008, investments in debt securities with a fixed maturity, classified as available-for-sale, are scheduled to mature as follows: (based on amortized cost) 

maturity 

Within One Year One Through Five Years five Through Ten Years After Ten Years 

United States Government Agencies $ 12,999,191 12,195,575 47,691,251 $ 49,874,843 

Obligations of State and Political Subdivisions 578,934 150,000 — — 

Mortgage-Backed Securities 30,067 6,658,707 1,720,520 3,068,199 

Other Investment Securities — 1,100,000 — — 

Total $ 13,608,192 20,104,282 49,411,771 $ 52,943,042 

At December 31, 2008, investments in debt securities classified as held-to-maturity are scheduled to mature as follows: 

maturity 


Other Investment Securities $ 1,477 9,771 9,104 665,141 

Total $ 1,477 9,771 9,104 665,141 

The following is a summary of investment securities classified as available for sale at December 31, 2007: 



Equity Securities $ 1,068,453 179,091 — $ 1,247,544 

United States Government Agencies 118,076,148 107,681 — 118,183,829 

Obligations of State and Political Subdivisions 914,853 26,536 — 941,389 

Mortgage-Backed Securities 11,110,933 — (124,067) 10,986,866 

Other Investment Securities 1,150,000 — (94,710) 1,055,290 

Total $ 132,320,387 313,308 (218,777) $ 132,414,918 

The following is a summary of investment securities classified as held-to-maturity as of December 31, 2007: 



Other Investment Securities $ 654,172 — — $ 654,172 

Total $ 654,172 — — $ 654,172 

At December 31, 2007, investments in debt securities with a fixed maturity, classified as available-for-sale, are scheduled to mature as follows: (based on amortized cost) 

maturity 


United States Government Agencies $ 6,999,591 31,164,469 43,687,968 $ 36,224,120 

Obligations of State and Political Subdivisions 190,000 724,853 — — 

Mortgage-Backed Securities 220,088 7,363,892 3,275,171 251,782 

Other investment Securities $ 50,000 1,000,000 50,000 $ 50,000 

Total $ 7,459,679 $ 40,253,214 $ 47,013,139 $ 36,475,902 

At December 31, 2007, investments in debt securities classified as held-to-maturity are scheduled to mature as follows: 

maturity 


Other Investment Securities $ — 14,251 35,980 $ 603,941 

Total $ — 14,251 35,980 $ 603,941 

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During 2008, sales proceeds and gross realized gains and losses on investment securities classified as available-for-sale and held to maturity were: 

Available for Sale 

held to Maturity 

Sale Proceeds $ 92,886,740 $ — 

Gross Realized (Losses) — — 

Realized Gains $ 145,197 $ — 

During 2007, sales proceeds and gross realized gains and losses on investment securities classified as available-for-sale and held to maturity were: 

Available for Sale 

held to Maturity 

Sale Proceeds $ 15,265,000 $ — 

Gross Realized (Losses) — — 

Realized Gains $ — $ — 

Investment securities carried at approximately $119,683,650 and $102,986,212 at December 31, 2008 and 2007 respectively, were pledged to secure public deposits and for 

other purposes required by law. 

Note 5 - Loans 

Major classifications of loans included in the accompanying Statements of Condition at December 2008 and 2007 are as follows: 

2008 2007 

Consumer Loans $ 3,049,855 $ 4,130,092 

Commercial and Industrial loans 42,952,122 22,555,480 

Real Estate Loans 138,502,493 125,209,853 

Real Estate Construction Loans 13,318,078 29,351,302 

Gross Loans 196,822,548 181,246,727 

Less-Unearned Discount — (123) 

Loans, Net of Unearned Discount $ 196,822,548 $ 181,246,604 

At December 31, 2008 and 2007, loans aggregating $3,400,526 and $3,499,068 respectively, were outstanding to Officers, Directors and principal shareholders of the 

Bank or to corporations in which such officers or directors had a beneficial interest. These loans were all made with substantially the same interest rates and collateral 

requirements as comparable loans to non-related borrowers. During 2008, and 2007, new loans to such related parties amounted to $475,305 and $459,924 respectively. 

Loan repayments during the year amounted to $573,847 and $1,104,375 respectively. Non-accrual loans at December 31, 2008 and 2007 approximated $10,243,603 and 

$1,868,085 respectively. The amount of interest income, which would have been recorded if the loans were on an accrual basis, would have approximated $691,761 during 

2008, and $111,357 during 2007. Commercial and multi-family real estate loans aggregated approximately $44,939,160 and $25,000,200 at December 31,2008 and 

December 31, 2007 respectively. A majority of these properties are located in the Chicago metropolitan area. These loans are collateralized by the related properties and the 

loan-to-value ratios generally do not exceed 75 percent. 

During the year the Corporation made a $5,000,000 loan to the Metavante Corporation. Metavante provides data processing services. The loan was made with substantially 

the same interest rate and collateral requirements as the comparable loans to non-related borrowers. 

Note 6 — Allowance for Possible Loan Losses and Impaired Loans 

As of December 31, 2008 and December 31, 2007, the total recorded investment in impaired loans was $14,815,147 and $2,576,824, respectively. Of these amounts, in 

2008 and 2007, $3,117,666 and $936,201 were subject to an allowance for possible loan losses of $552,234 and $72,823 respectively. During 2008, the average recorded 

investment in impaired loans was $15,265,122 and $2,939,857 in 2007. Interest income recognized in 2008 and 2007 during the period in which the loans were impaired 

was $493,880 and $140,588. The amount of income that would have been recorded on a cash basis during 2008 and 2007 would have been $564,768 and $154,180. 

Following is a summary of the activity in the Allowance for Possible Loan Losses: 

2008 2007 

Balance at Beginning of Year $ 1,840,318 $ 1,734,781 

Recoveries credited to the allowance 29,506 335,431 

Provision for possible loan losses 995,000 80,000 

Loans charged-off (704,079) (309,894) 

Balance at End of Year $ 2,160,745 $ 1,840,318 

Note 7 — Premises and Equipment 

A summary of premises and equipment at December 31, 2008 and 2007 is a follows: 

consolidated B bank Only 

2008 2007 2008 2007 

Premises $ 7,141,988 7,033,362 7,283,845 $ 7,175,219 

Equipment 5,225,900 4,872,710 5,225,900 4,872,710 

12,367,888 11,906,072 12,509,745 12,047,929 

Less-Accumulated Depreciation (7,578,800) (7,033,266) (7,578,800) (7,033,266) 

Net Book Value $ 4,789,088 4,872,806 4,930,945 $ 5,014,663 

Depreciation charged to consolidated operating expenses amounted to $666,869 and $567,843 for 2008 and 2007 respectively. Equipment rental expense for 2008 and 

2007 was $8,101 and $13,816 respectively. 

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Note 8 — Deposits 


2008 2007 2008 2007 

Non-Interest-Bearing Deposits 

Deposits of individuals, partnerships and corporations $ 34,847,289 44,333,762 34,861,667 $ 45,219,224 

Deposits of the United States Government 9,946 136 9,946 136 

Deposits of state and political subdivisions 73,186 630,710 73,186 630,710 

Certified and official checks 1,652,920 1,857,620 1,652,920 1,857,620 

Total non-interest-bearing deposits 36,583,341 46,822,228 36,597,719 47,707,690 

Interest-Bearing Deposits: 

Deposits of individuals, partnerships and corporations 164,323,652 154,033,289 164,323,652 154,033,289 

Deposits of the United States Government 7,996,227 8,513,676 7,996,227 8,513,676 

Deposits of state and political subdivisions 102,868,140 87,075,013 102,868,140 87,075,013 

Other Depository Institutions in US 3,509,502 3,704,101 3,509,502 3,704,101 

Total Interest-Bearing Subdivisions 278,697,521 253,326,079 278,697,521 253,326,079 

Total Deposits $ 315,280,862 300,148,307 315,295,240 $ 301,033,769 

Certificates of deposit of $100,000 or more included in the balance of interest-bearing deposits amounted to $132,794,803 and $99,172,123 at December 31, 2008 and 

2007 respectively. 

Certificates of deposits maturing in years ending December 31, at December 31, 2008: 

2009 $ 133,145,710 

2010 9,628,079 

2011 1,750,721 

2012 5,337,510 

2013 and thereafter 19,601,203 

$ 169,463,223 

At December 31, 2008, deposits of executive officers, directors, and principal shareholders of the Bank and corporations in which such officers or directors had a beneficial 

interest total approximately $10,589,752 

Note 9 — Income Taxes 

Effective January 1, 2001, the Corporation and the Bank jointly elected to be treated as an S Corporation for federal income tax purposes. As an S Corporation, the 

Corporation and the Bank are generally only currently liable for federal corporate level income taxes on certain “built-in gains” existing at December 31, 2000 which are 

recognized after that date and any applicable state corporate level income taxes (including the Illinois Replacement Tax). As a further consequence of the S Corporation 

election, the Corporation and the Bank have been required to revalue certain deferred tax assets and liabilities at the lower statutory tax rates applicable to S Corporations. 

The current and deferred components of income tax expenses are as follows: 


2008 2007 2008 2007 

Current Federal $ 8,400 — 8,400 $ — 

State 30,716 14,169 30,716 12,064 

Deferred (4,416) (9,169) (4,416) (7,064) 

Total $ 34,700 5,000 34,700 $ 5,000 

The sources of timing differences resulting in deferred income taxes and the tax effects for the years ended December 31, 2008 and 2007, on a consolidated and bank basis 

are as follows: 


2008 2007 2008 2007 

Loan loss deduction charged to operating expenses less 

than (in excess of) that for income tax purposes $ (4,810) (1,583) (4,810) $ (1,583) 

Depreciation expense for income tax purposes in 

excess of the amount charged to operating expense 3,539 (1,729) 3,539 376 

State Income Tax — — — — 

Accretion of bond discount, Net (788) 446 (788) 446 

Other (2,357) (6,303) (2,357) (6,303) 

$ (4,416) (9,169) (4,416) $ (7,064) 

As a result of FAS 115, which relates to the recording of unrealized security gains and losses, the following deferred tax items are not included in the above tables and 

are charged or credited directly to shareholders’ equity: at December 31, 2008, and 2007, $46,263 and $86,549 of tax liabilities, respectively, were recorded for unrealized 

security gains relating to securities classified as available for sale. 

The effective tax rates for both the Corporation and the Bank are less than the statutory Federal Income Tax rates. The reasons for the difference between such rates and 

the Federal Income Tax statutory rates for 2008 and 2007 are as follows: 

20


December 31, 2008 consolidated B bank Only 

Amount Percent of Pretax Income Amount Percent of Pretax Income 

Tax expense at statutory rate $ 980,433 34.0% 1,129,158 34.0% 

Increase (reduction) in taxes resulting from: 

S Corporation Election (972,264) -33.7% (1,120,989 -33.8% 

Tax Exempt Interest (15,276) -0.5% (15,276) -0.5% 

State Replacement Tax 30,716 1.1% 30,716 0.9% 

Other 11,091 0.4% 11,091 0.3% 

Net Reduction (945,733) (32.7) (1,094,458) (33.1) 

$ 34,700 1.3% $ 34,700 .9% 

December 31, 2007 consolidated B bank Only 

Amount Percent of Pretax Income Amount Percent of Pretax Income 

Tax expense at statutory rate $ 866,487 34.0% $ 1,088,521 34.0% 

Increase (reduction) in taxes resulting from: 

S Corporation Election (802,517) (31.5) (1,024,551) (32.0) 

Tax Exempt Interest (20,001) (0.8) (20,001) (0.8) 

State Replacement Tax 12,064 0.5 12,064 0.4 

Other (51,033) (2.0) (51,033) (1.6) 

Net Reduction (861,487) (33.8) (1,083,521) (34.0) 

$ 5,000 0.2% $ 5,000 0% 

Included in Other Liabilities in 2008 and Other Assets in 2007 of the Consolidated and Bank-Only Statements of Condition are deferred tax assets and liabilities 

as follows: 


2008 2007 2008 2007 

Deferred Tax Asset $ 56,636 $ 54,944 $ 56,636 $ 54,944 

Deferred Tax Liability (50,973) (93,983) (50,973) (93,983) 

Net Deferred Tax Assets/(Liabilities) $ 5,663 $ (39,039) $ 5,663 $ (39,039) 

Note 10 — Long-Term Debt-Subordinated Debentures 

In 2006, the Corporation formed a wholly-owned unconsolidated finance 

subsidiary (“Trust”), for the sole purpose of issuing $6 million of Trust Preferred 

securities. The proceeds of the Trust Preferred securities, along with proceeds of 

$186,000 from the issuance of common securities by the Trust to the Corporation, 

were used to purchase $6,186 million of the Corporations fixed rate junior 

subordinated notes (“Debentures”). 

The Debentures mature 30 years from the issuance date, but are redeemable 

(at par) at the Corporation’s option at any time commencing on the fifth 

anniversary of the issuance (or upon the occurrence of certain other prescribed 

events). Interest payments on the debentures are payable quarterly. So long as an 

event of default has not occurred (described further below), the Corporation 

may defer interest payments for up to 20 consecutive quarters. Events of default 

include failure to pay interest at maturity, or filing bankruptcy. 

If the Corporation were to elect to defer interest on the Debentures, the 

Corporation would generally be restricted from declaring or paying any dividends 

to common shareholders or repurchasing its common stock. 

Debentures outstanding totaled $6.186 million at December 31 2007. The 

scheduled maturity of the Debenture is $6.186 in 2036. Interest and fees included 

in interest expense totaled $397,760 at December 31, 2008. The Debenture interest 

rate is fixed for 5 years at 6.43% and then after floating at the 6 month Libor 

rate plus 159 basis points. 

Note 11 — Common Stock 

The following schedule summarizes the information concerning the common stock of the Corporation and the Bank at December 31, 2008 and 2007. 


2008 2007 2008 2007 

Par Value $ 1 $ 1 $ 10 $ 10 

Shares Authorized 400,000 400,000 93,570 93,750 

Shares Outstanding 301,513 301,513 85,101 85,101 

Weighted average number shares outstanding 301,513 301,513 85,101 85,101 

Note 12 — Regulatory Matters 

The Corporation’s principal source of income is the payment of dividends on the 

stock of the bank owned by the Corporation. Illinois law restricts the Bank’s ability 

to pay these dividends. Under the Illinois Banking Act, no dividend may be 

declared by an Illinois state-chartered bank (i) except out of the bank’s net profits 

and (ii) unless the bank has transferred to surplus at least one-tenth of its net 

profits since the date of the declaration of the last preceding dividend, until the 

amount of its surplus is at least equal to its capital. Net profits under the Illinois 

Banking Act must be adjusted for losses and bad debts (i.e. debts owing to the 

bank on which interest is past due and unpaid for a period of six months or more 

unless such debts are well secured and in the process of collection). 

Under the Federal Deposit Insurance Corporation Improvement Act of 1991 

(“FDICIA”), no insured depository institution may declare any dividend if, following 

the payment of such dividend, the institution would be undercapitalized. 

The Bank is required to have minimum tier one and total risk based capital 

ratios of 6% and 10% respectively. The Bank’s actual ratios as of December 31, 

2008 and December 31, 2007 were 17.21% and 17.73% respectively. The Bank’s 

leverage ratio at December 31, 2008 and December 31, 2007 was 10.11% and 

10.30% respectively. 

21


Note 13 — Acquisition of Seaway Bank and Trust Company Common Stock 

On September 29, 1987, the Corporation consummated a transaction in which it 

acquired the remaining 1,130 shares of bank common stock. Under the terms of 

this transaction, the Bank was merged with an interim bank. The bank resulting 

from the merger continued to conduct the business of the Bank with the same 

officers and directors, and with all the same rights, duties, powers and obligations 

which the Bank held immediately prior to the merger. Upon consummation of 

the merger, the holders of the remaining 1,130 shares of Bank common-stock 

relinquished any ownership interest in the Bank and became entitled to receive 

$145.00 cash for each of their shares. At September 29, 1987, the Corporation 

owned 100% of outstanding common stock of the Bank. Payment to the holders 

of the 1,130 shares of Bank common stock is made by the Corporation upon 

delivery of the certificates representing such shares. As of December 31, 2008 

and 2007, 315 shares respectively, had not been delivered to the Corporation. 

The amount due to these shareholders was $45,675 at December 31, 2008 and 

December 31, 2007, respectively. 

Note 14 — Seaway Community Development Corporation 

On March 15, 1997 the Corporation guaranteed a $400,000 Line of Credit 

extended to Seaway Community Development Corporation (SCDC) by Bank 

of America, N.A. Effective November 28, 2007, the Corporation guaranteed 

the renewed Line of Credit Agreement, which expired on October 31, 2008. At 

December 31, 2008 and 2007, SCDC had outstanding advances of $100,000 and 

$94,965 respectively. 

Note 15 — Profit Sharing Trust 

On January 1, 1977, the Board of Directors of the Bank adopted an Employee 

Profit Sharing Plan for those employees with a minimum of one year of service. 

Effective January 1, 1989, the Board of Directors adopted the Seaway National 

Bank Employee Savings Plan. The two plans were merged as of March 31, 1990 

to form the Seaway National Bank Profit Sharing Trust (the “Trust”). The Trust 

qualifies under Internal Revenue Code sections 401 and 501. 

The Bank makes contributions to the Trust from its current or accumulated 

profits, as well as, a matching contribution on behalf of each qualified employee 

equal to 25% of the employee’s matchable salary reduction of up to 4%. Employees 

may elect to make a salary reduction contribution on an optional basis 

up to a maximum of 12% of their annual earnings. Contributions of the Bank 

and employees are subject to certain Internal Revenue Code limitations. Vesting 

in the Trust begins after two years of service and employees are fully vested after 

seven years of service. The Bank’s contributions to the Trust were $150,000 and 

$178,560 in 2008 and 2007, respectively. 

Note 16 — Stock Option Plan 

In December of 1998, the Seaway National Bank Incentive Stock Option Plan 

(ISO) was established. Participants in the Plan shall be selected by the Board of 

Directors from among the Bank’s executive officers and any other key employees 

of the Bank who have the capability of making a substantial contribution to the 

Bank. The aggregate number of shares, which may be issued under the options 

granted pursuant to the Plan shall be 25,000 Common Shares. The grant of 

incentive stock options (ISO) will be considered annually at a regularly scheduled 

board meeting. The price per share of Common Stock payable upon exercise 

of an ISO shall be equal to 110% of the fair market value of a share of Common 

Stock on the date the ISO is granted. The Bank will engage the services 

of an independent business valuation company to determine the fair value of a 

share of Common Stock on the date the ISO is granted. Each ISO shall be fully 

exercisable upon issuance and may be exercised during a period of ten (10) years, 

commencing on the date of grant. The Plan was terminated effective October 1, 

2003 by the Board of Directors in August 2003. 

In August 2003, The Board of Directors approved the Executive Incentive 

Plan (Phantom) and the Supplemental Executive Retirement Plan, (SERP). These 

plans were designed to replace the ISO Plan. The Board of Directors in December 

2008 and 2007, respectively, awarded 550 and 500 Phantom Stock Units. 

The expense recorded in 2008 and 2007 for the Phantom Plan was $52,311 and 

$63,703, respectively. The SERP provides an incentive for continuing performance 

by key executives and provides for additional retirement benefits. During 

2003, the Bank purchased a $4.3 million bank-owned life insurance contract to 

fund the plan. The contract has been reported in the financial statement in Other 

Assets. At December 31, 2008 and 2007 cash surrender value was $5,244 and 

$5,061 million, respectively. The expense for the SERP recorded in 2008 and 

2007 was $317,734 and $293,421, respectively. 

Note 17 — Commitments and Contingencies Support 

The Bank’s financial statements do not reflect various commitments and contingent liabilities which arise in the normal course of business and which involve elements of 

credit risk, interest rate risk and liquidity risk. These commitments and contingent liabilities are commitments to extend credit and standby letters of credit. A summary of 

the Bank’s commitments and contingent liabilities at December 31, 2008 and 2007 are as follows: 

approximate Amount 

2008 2007 

Commitments to Extend Credit $ 66,124,479 $ 53,657,751 

Home Equity Loans $ 473,802 $ 462,667 

Standby Letters of Credit $ 46,870 $ 341,870 

Commitments to extend credit, home equity lines of credit and standby letters of credit all include exposure to some credit loss in the event of non-performance by the 

customer. The Bank’s credit policies and procedures for credit commitments and financial guarantees are the same as those for the extension of credit that are recorded 

on the Statement of Condition. Because these instruments have fixed maturity dates and because many of them expire without being drawn upon, they do not generally 

present any significant liquidity risk to the Bank. 

Generally, home equity lines are secured by real property and standby letters of credit are secured by deposits or other acceptable collateral. The Bank does not anticipate 

any losses as a result of these commitments. 

The Bank is a defendant in legal actions arising from normal business activities. Management believes that those actions are without merit or that the ultimate liability, 

if any, resulting from them will not materially affect the Bank’s financial position. 

Note 18 — Retirement of Certain Seaway Bancshares, Inc. Common Stock 

On September 27, 2000, Seaway Bancshares, Inc. made an offer of $80.00 a share 

to any stockholder who owned 500 or fewer shares of common stock. This offer 

expired on October 27, 2000. Related to this offer 1,171 shares valued at $93,680 

were tendered. 

On October 19, 2000 the Board of Directors of Seaway Bancshares, Inc. approved 

a resolution to effectuate a reverse stock split on a 101 to 1 basis on all of 

the issued and outstanding shares of record on the close of business on November 

14, 2000, and to retire fractional shares at a price of $77.00 per share. The Corporation 

retired 479 shares valued at $36,883 under this resolution. The Corporation 

upon completion of the stock split, acquired from shareholders who owned 

fewer than 100 shares of the common stock, 316 shares that were not tendered 

at December 31, 2000 under the November 14, 2000 offer. The value of these 

shares acquired, but not tendered, was $2,695 at December 31, 2008 and 2007, 

respectively, and is included on Other Liabilities on the Seaway Bancshares, Inc. 

financial statements. The Corporation authorized a 100 to 1 stock split effective 

as of 12:00 am on November 15, 2000. 

22 

Note 19 — Intangible Assets 

In late December, 2000, certain assets of the foreign exchange operation of Highland 

Community Bank were acquired. The excess of the cost of this acquisition 

over the fair value of the acquired net assets at the date of acquisition is reported 

as intangible assets. The Corporation adopted FAS 142 effective January 1, 2002, 

and accordingly, has ceased amortizing amounts related to goodwill starting from 

that date. 

As required by FAS 142, goodwill is subject to an annual impairment test. The 

test consists of a two-step process whereby a determination is made as to whether 

impairment exists, and then whether an adjustment is required. Impairment losses 

were recognized in 2008 and 2007 in the amounts of $210,000 and $140,338, 

respectively. The aforementioned banking operations have been submitted to bid 

by the City of Chicago. A number of local Banks and Financial Service Companies, 

along with Seaway Bank and Trust Company have submitted bids. Currently, 

it is impossible to predict the outcome of the bidding process. We are confident 

that we have submitted a highly competitive bid. However, our analysis indicates 

that it would be prudent to recognize an impairment loss to accurately report the 

current fair value of the goodwill.

Independent Auditor’s Report 

To the Board of Directors and Stockholders of Seaway Bancshares, Inc. and Subsidiary 

We have audited the accompanying consolidated statements of financial condition of Seaway Bancshares, 

Inc. (a Delaware Corporation) and Subsidiary as of December 31, 2008 and 2007, and the related consolidated 

statements of income, changes in stockholders’ equity, and cash flows for the years then ended and 

the accompanying statements of financial condition of Seaway Bank and Trust Company as of December 

31, 2008 and 2007, and the related statements of income, changes in stockholders’ equity, and cash flows 

for the years then ended. These financial statements are the responsibility of the Corporation’s management. 

Our responsibility is to express an opinion on these financial statements based upon our audits. 

We conducted our audits in accordance with auditing standards generally accepted in the United States 

of America. Those standards require that we plan and perform the audits to obtain reasonable assurance 

about whether the financial statements are free of material misstatement. An audit includes examining 

on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also 

includes assessing the accounting principles used and significant estimates made by management, as well 

as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable 

basis for our opinion. 

In our opinion, the financial statements referred to above present fairly, in all material respects, the 

financial position of Seaway Bancshares, Inc. and Subsidiary and Seaway Bank and Trust Company as of 

December 31, 2008 and 2007, and the results of operations and cash flows for the years then ended in 

conformity with accounting principles generally accepted in the United States of America. 

Washington, Pittman & McKeever, LLC 

Chicago, Illinois 

March 11, 2009 

23


Board of Directors and Officers 

seaway bank and trust company 

Front row (left to right) 

Jacoby Dickens, Walter 

E. Grady, Phyllis Davis. 

Back row (left to right) 

David A. Kelly, James 

Compton, William Bates, 

Jr., Joseph Caldwell, 

Jory Luster, Richard S. 

Abrams. 

Board of Directors 

Jacoby Dickens 

Chairman of the Board 

Walter E. Grady 

President & Chief Executive 

Officer 

Richard S. Abrams 

Executive Vice President & 

Chief Operating Officer 

William Bates, Jr. 

Executive Vice President & 

General Counsel 

Joseph Caldwell 

President 

Tailo-Rite Clothing Care 

James Compton 

President & Chief Executive 

Officer - Retired 

Chicago Urban League 

Phyllis Davis 

President 

Phyllis Davis Real Estate 

David A. Kelly 

Vice President - Retired 

NiSource, Inc. 

Jory Luster 

President 

Luster Products 

Officers 

Sandra Alfonso 

Airport Operations Officer 

Gail L. Bahar 

VP/Human Resources Officer 

David Becerra 

Retail Loan Officer – 

Waukegan LPO 

Virgil Booker 

VP/Retail Loan Officer 

Ronald Branch 

Commercial Loan Officer 

Addie Collins 

AVP/Retail Loan Officer 

Danny Davis 

Commercial Loan Officer – 

Waukegan LPO 

Terrence Grady 

Commercial Loan Officer 

Claudette Harris 

AVP/Marketing Officer 

Daren Hobbs 

AVP/Commercial Loan 

Officer 

David Hollins 

AVP/Operations Officer 

Lois B. Jenkins 

VP/Trust Officer 

Kathleen Martin 

Teller Operations Officer 

Patricia McCreary 

SVP/Cashier 

Jeanne McGraw 

Loan Accounting Officer 

Tracy Meeks 

VP/Commercial Loan Officer 

Musibau Oriola 

VP/Airport Operations 

Officer 

Trina E. Phelps 

VP/Internal Auditor/Loan 

Review Officer 

Dwayne Shipp 

VP/Comptroller 

Morris Simpson 

Assistant Comptroller 

Alice Stewart 

Business Development Officer 

Daniel Taylor 

SCDC Director/ 

Business Development 

Coordinator 

Brenda Terrell 

Administrative Services/ 

Security Officer 

Denise Weaver 

VP/BSA/Compliance Officer 

Arlene Williams 

EVP/Lending 

April Wright 

AVP/Loan Operations/ 

Credit Administration Officer 

24 

Kimberley Richardson 

Trust Officer

Banking Facilities 

Design: Stephen B. Starr Design, Inc. Editorial: Kevin Cranfill Principal Photography: Wheeler Commercial Photography Printing: Graphic Partners, Inc. 

Main Bank 

645 East 87th Street 

Chicago, IL 60619 

West Facility 

Chatham Ridge Shopping Center 

8652 South Lafayette Avenue 


South Facility 

11116 South Michigan Avenue 


East Facility 



Loan Production Office 

1334 North Lewis Avenue 

Waukegan, IL 60085 

Airport Facilities 

O’Hare International Airport 

Foreign Currency Exchange 

Terminals 1, 2, 3 and 5 

Depository, Terminals 2 and 5 


Midway International Airport 

Foreign Currency Exchange 

Concourse A 

5700 South Cicero Avenue 


New name. 

Additional ATM Facilities 

City of Chicago Revenue Office 



2550 West Addison 


Kimbark Liquors 

1214 East 53rd Street 


McCormick Place 

2301 South Lake Shore Drive 


Skyway Bowl 

9915 South Torrence Avenue 


YMCA 

6330 Stony Island Avenue 


New look. 

Same commitment.

Seaway Bancshares, Inc. 


Chicago, Illinois 60619 

773. 487. 4800 

www.seawaybank.us

Same commitment. - Seaway Bank and Trust Company

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