On Friday, ShoreBank, the South Side bank known for its community lending, was seized by the Feds. Its assets were turned over to its management team and will be reopened as Urban Partnership Bank, the Sun-Times is reporting.
Urban Partnership Bank "has indicated that they will maintain ShoreBank's focus of providing loan and deposit products and services to individuals and small- to mid-sized businesses, with a special emphasis on the underserved" neighborhoods, according to a fact sheet issued by the FDIC, according to the paper.
Most of ShoreBank's $2.14 billion in assets was acquired.
ShoreBank's 15 branches will reopen Saturday morning as branches of Urban Partnership Bank and will get a new board of directors. ATM debit cards and checks can be used as usual.
ShoreBank has become renowned nationally for its support of low-income borrowers. According to a report the bank filed, during the first six months of this year, the bank lost $39.6 million and lost $119 million in all of 2009, partly due to bad loans to apartment buildings.
Earlier this month, Ravenswood Bank was also seized by the Feds.