Chicago-based bank acquires Philadelphia savings and loan (01/07/96)

Chicago-based bank acquires Philadelphia savings and loan

by Jaroslaw Kaczaj

After reading the 1st Security Federal Savings Bank bulletin for the year ending December 31, 1994, specifically President Julian E. Kulas' message about the acquisition of the former Ukrainian Savings and Loan Association in Philadelphia, many may wonder why the Chicago-based bank would venture so far away from home.

Perhaps the motivation of the board and president was rooted in financial risk-taking. Everyone knows that risk is inherent in the world of finance and banking. In this particular case, however, there was something greater than financial risk-taking. It was the nobleness and patriotism of the Chicago board of directors and President Kulas.

The bank bulletin also contained an article by one of the former vice-presidents of Ukrainian Savings and Loan, Zvena Romaniw. She cites the reasons for the downfall of the Philadelphia thrift, as well as the tremendous efforts made to save it from complete demise. The fate of Ukrainian Savings and Loan was left in the hands of the Resolution Trust Corp., a federal agency whose mission was to resolve failed thrifts throughout the United States.

The Philadelphia Ukrainian community, deeply concerned about its 74-year-old, $83 million association, formed a committee of various Ukrainian organizations called the Committee for the Preservation of the Ukrainian Savings and Loan Association. The greatest and only hope for saving the Philadelphia thrift lay with the Chicago-based 1st Security Federal Savings Bank. The Board of directors and President Kulas received many letters from Philadelphia for their help in ultimately acquiring the Ukrainian Savings and Loan.

Based on the numerous letters received from the Philadelphia community, the directors and president of 1st Security agreed to bid for this savings and loan association. However, this process was wt without obstacles. A local Philadelphia "minority-controlled" bank also was interested in purchasing Ukrainian Savings and Loan Association from the Resolution Trust Corp., which gives preferential treatment to minority bidders. The federal government does not consider ethnic-run banks as minorities. This created a considerable disadvantage for President Kulas and his board.

However, because of President Kulas' and the board's persistence and unwavering efforts, the Philadelphia Ukrainian community rejoiced at the news that they would have a Ukrainian bank where they could save their money and borrow money for home purchases and the like.

1st Security Federal Savings Bank in Philadelphia is managed by Adrian Hawryliw. Mr. Hawryliw holds a master's degree in business administration from Temple University and has over 30 years of banking experience in the Philadelphia area.

In closing, it should be noted that the president of 1st Security Federal Savings Bank, Mr. Kulas, is an individual of the highest caliber, whom God has blessed with exceptional talents. Mr. Kulas is, first and foremost, a Ukrainian patriot known to many as a prominent lawyer, civic leader and humanitarian. Mr. Kulas also is a very influential individual with the Clinton administration in Washington, and has played major roles in various diplomatic visits from Ukraine, most recently, the visit of President Leonid Kuchma to Washington.

The Philadelphia community will now strive to make this branch prosper.

Jaroslaw Kaczaj is a member of the Committee for the Preservation of the Ukrainian Savings and Loan Association.

| Home Page |