Urban Partnership Bank
Encyclopedia
Urban Partnership Bank is a Federal Deposit Insurance Corporation
-insured, full-service community development bank in the United States with $1.4 billion in assets. It was established August 20, 2010, when it acquired the deposits and some of the assets of ShoreBank
from the FDIC, and is headquartered in Chicago, IL.
The bank’s singular focus is to build vibrant urban neighborhoods and promote economic and environmental sustainability in distressed and underserved areas of Chicago, Cleveland, OH, and Detroit, MI. Its customers range from individuals to small businesses, nonprofits, foundations and faith-based organizations. The bank places a special emphasis on serving underbanked
populations.
from the FDIC. These investors, including socially responsible individuals, financial institutions and foundations, had been impressed by ShoreBank’s mission and values. But when ShoreBank
started to fail, the new investors stepped in, securing a charter within 30 days and creating a new financial institution to continue serving its customers in urban communities where responsible, affordable financial services are often unavailable.
Urban Partnership Bank acquired all of ShoreBank's $1.54 billion in deposits and most of its $2.16 billion in assets. The FDIC and Urban Partnership Bank share the losses of $1.41 billion of those assets at 20% and 80%, respectively. The new bank was capitalized with nearly $140 million.
In July 2011, Urban Partnership Bank was certified as a Community Development Financial Institution. As such, other institutions can receive Community Reinvestment Act
credit for depositing their funds in the bank. It is also eligible to apply for programs through the CDFI Fund that support its mission to revitalize its urban neighborhoods.
In addition, the bank is shedding loan offices and big branch locations and replacing them with “micro-branches” or full-service banking offices that are more welcoming to its customers.
The bank also maintains branches in:
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation is a United States government corporation created by the Glass–Steagall Act of 1933. It provides deposit insurance, which guarantees the safety of deposits in member banks, currently up to $250,000 per depositor per bank. , the FDIC insures deposits at...
-insured, full-service community development bank in the United States with $1.4 billion in assets. It was established August 20, 2010, when it acquired the deposits and some of the assets of ShoreBank
ShoreBank
ShoreBank was a community development bank founded and headquartered in Chicago. At the time of its closing it was the oldest and largest such institution, and in 2008 had $2.6 billion in assets. It was owned by ShoreBank Corporation, a regulated bank holding company.ShoreBank had branches in...
from the FDIC, and is headquartered in Chicago, IL.
The bank’s singular focus is to build vibrant urban neighborhoods and promote economic and environmental sustainability in distressed and underserved areas of Chicago, Cleveland, OH, and Detroit, MI. Its customers range from individuals to small businesses, nonprofits, foundations and faith-based organizations. The bank places a special emphasis on serving underbanked
Underbanked
The underbanked are people or businesses that have poor access to mainstream financial services such as banks and so rely upon alternative financial services targeted at poor people such as cheque cashers, loan sharks and pawnbrokers They may be distinguished from the unbanked who have no banking...
populations.
Origin
Urban Partnership Bank was established when investors acquired the deposits and assets of ShoreBankShoreBank
ShoreBank was a community development bank founded and headquartered in Chicago. At the time of its closing it was the oldest and largest such institution, and in 2008 had $2.6 billion in assets. It was owned by ShoreBank Corporation, a regulated bank holding company.ShoreBank had branches in...
from the FDIC. These investors, including socially responsible individuals, financial institutions and foundations, had been impressed by ShoreBank’s mission and values. But when ShoreBank
ShoreBank
ShoreBank was a community development bank founded and headquartered in Chicago. At the time of its closing it was the oldest and largest such institution, and in 2008 had $2.6 billion in assets. It was owned by ShoreBank Corporation, a regulated bank holding company.ShoreBank had branches in...
started to fail, the new investors stepped in, securing a charter within 30 days and creating a new financial institution to continue serving its customers in urban communities where responsible, affordable financial services are often unavailable.
Urban Partnership Bank acquired all of ShoreBank's $1.54 billion in deposits and most of its $2.16 billion in assets. The FDIC and Urban Partnership Bank share the losses of $1.41 billion of those assets at 20% and 80%, respectively. The new bank was capitalized with nearly $140 million.
In July 2011, Urban Partnership Bank was certified as a Community Development Financial Institution. As such, other institutions can receive Community Reinvestment Act
Community Reinvestment Act
The Community Reinvestment Act is a United States federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods...
credit for depositing their funds in the bank. It is also eligible to apply for programs through the CDFI Fund that support its mission to revitalize its urban neighborhoods.
Leadership
Urban Partnership Bank is led by a team of experienced financial services professionals with deep roots in the community. Urban Partnership Bank President William Farrow and Executive Chairman David Vitale have said that their personal histories led them to take on the task of filling ShoreBank’s shoes.Mission
The bank defines its mission as “making a difference every day.” Its vision is to build communities where more people want to live, work and do business – and do so in an economically and environmentally sustainable manner.Serving the underbanked
Urban Partnership Bank positions itself as a lower-cost competitor to currency exchanges and other cash-checking outlets, providing transaction services like prepaid cards to the many consumers who don’t have bank relationships.In addition, the bank is shedding loan offices and big branch locations and replacing them with “micro-branches” or full-service banking offices that are more welcoming to its customers.
Branch locations
In Chicago, the bank’s branches serve the following communities:- Chatham
- Austin (opening 4Q 2011)
- Bellwood (opening 4Q 2011)
- Bronzeville (opening to 1Q 2012)
- South Shore
- Kenwood
- Chicago Loop (opening Oct. 2011)
- West Ridge (opening 4Q 2011)
- Stone Park
The bank also maintains branches in:
- Cleveland, OH
- Detroit, MI (new location opening 1Q 2012)