Urban Partnership Bank
Industry | Banking |
---|---|
Founded | 2010 |
Headquarters | Chicago, IL , United States |
Key people |
|
Website | www.upbnk.com |
Urban Partnership Bank was a
The bank's stated mission was to build vibrant urban neighborhoods, promote economic and
Origin
Urban Partnership Bank was founded in 2011 by the former management of the failed, but politically connected,
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 shared the losses of $1.41 billion of those assets at 20% and 80%, respectively.[3] The new bank was capitalized with nearly $140 million.[4]
In July 2011 Urban Partnership Bank was certified as a community development financial institution (CDFI). As such, other institutions could receive Community Reinvestment Act credit for depositing their funds in the bank. It was eligible to apply for programs through the CDFI Fund that support its mission to revitalize its urban neighborhoods.
Urban Partnership Bank was also certified as a Minority Depository Institution (MDI), which meant that the bank was working towards improving and strengthening the community's overall well-being.[5]
Operations history
After enduring significant losses every year since its creation, the bank moved to cut its operating costs in 2016 by reducing its overall number of branches and employees. This resulted in stable fourth quarter numbers and the bank's first ever profit.[6] In September 2018, Providence Bank & Trust of South Holland, Illinois, a bank with 12 branches in the Chicago area, announced that it would purchase Urban Partnership.[7] The acquisition was completed on Jan 30, 2019.[8][9]
Leadership
Urban Partnership Bank was led by a team of experienced financial services professionals with 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.[10]
Serving the underbanked
Urban Partnership Bank positioned itself as a lower-cost competitor to currency exchanges and other cash-checking outlets, providing transaction services like prepaid cards to consumers who didn’t have bank relationships.[10] The bank was closing loan offices and big branch locations and replacing them with “micro-branches” or full-service banking offices that were more welcoming to its customers.[11]
Branch locations
In Chicago, the bank’s branches served the communities of Chatham, Austin, Bellwood, Bronzeville, Greater Grand Crossing, South Shore, Kenwood, Loop, West Ridge, and Stone Park. The bank also maintained branches in Cleveland and Detroit.
References
- ^ "Mission". Archived from the original on August 2, 2017.
- ^ "Politically Connected ShoreBank of Chicago Fails and Reincarnated at Taxpayer Expense". August 21, 2010.
- ^ " Chicago's ShoreBank fails, is bought by investors
- ^ Execs position former ShoreBank for growth.
- ^ "Our MDI Designation - Urban Partnership Bank". www.upbnk.com. Retrieved April 17, 2017.
- ^ "Urban Partnership Bank turns a profit for first time". February 6, 2017.
- Chicago Sun Times. Chicago. Retrieved March 26, 2019.
- ^ "Providence Bank & Trust Welcomes Urban Partnership Bank Customers"
- ^ "Welcome to Providence Bank & Trust". Providence Bank & Trust. 2019. Retrieved October 11, 2020.
- ^ a b Urban Partnership Bank execs lay out plans for former ShoreBank
- ^ Almost a Year After ShoreBank's Failure, Urban Partnership is Ready to Lend