The Federal Savings Bank in Chicago has been expanding its mortgage business across the country, but now it aims to grow locally by partnering with another bank.
The $200 million-asset Federal Savings announced on Monday that it has partnered with the $2 billion-asset West Suburban Bank in Lombard, Ill., to offer mortgage products across West Suburban's 37-branch network.
Federal Savings' offerings include mortgages guaranteed by the U.S. Department of Veterans Affairs and U.S. Department of Agriculture; jumbo and super jumbo loans; and portfolio lending.
"We feel the partnership with the Federal Savings Bank will provide enhanced mortgage services with additional products that will benefit our customers, that we could not provide them before," Keith Acker, president of West Suburban, said in a press release.
Federal Savings said it plans to add 10 mortgage bankers to its team because of the partnership.
"The Federal Savings Bank is thrilled to further expand our footprint in the Chicagoland area and offer our mortgage banking and home loan services to more customers in Chicago's west suburbs," Stephen Calk, chairman and chief executive of the thrift, said in a press release.
Federal Savings has two loan production offices in suburban Chicago and 15 offices throughout the country.
It was acquired in 2011 by brothers Stephen and John Calk, who at the time ran mortgage bank Chicago Bancorp, in a rare bank foreclosure in Kansas. It was then called Generations Bank and its previous owners had defaulted on a loan from a unit of Dickinson Financial where Generations served as the collateral. The Calk brothers recapitalized it and relocated it to Chicago in 2012.
The relocation was aided by commitments from the city of Chicago for $10,000 per employee it hired, with the money earmarked for training. The bank was also lured by as much as $9.5 million in tax credits over a decade if it hired the 400 people it promised. The company has 600 employees throughout its 18 offices nationwide, it said in the press release.