Former Illinois president of Citibank lands at Urban Partnership Bank

 

DPH 

Published in Crain's

By Steve Daniels September 23, 2014

Darryl Hendricks, who retired from Citibank more than two years ago, is the new director of consumer banking at Chicago-based Urban Partnership Bank, a business and mortgage lender in low-income minority neighborhoods in Chicago and Detroit. The 64-year-old will oversee the community bank's eight branches in Chicago and one in Detroit. He started Sept. 8.

UPB, the successor institution to failed urban community bank ShoreBank, has overhauled ShoreBank's old branch network. It pulled out of the Cleveland market and closed ShoreBank's flagship main branch in Chicago's South Shore neighborhood.

At the same time, UPB moved into some new neighborhoods, acquiring Northern Trust Co.'s South Side branch at 78th Street and the Dan Ryan Expressway and opening a mini-branch within the new Wal-Mart superstore in the Pullman neighborhood.

UPB has been searching for a retail banking head for about a year. After two years of retirement — “I thought I was enjoying retirement up to the point where my wife was giving me more stuff to do than when I was working” — Mr. Hendricks was beginning to mull his next chapter when the opportunity arose.

“I was thinking about volunteering,” Mr. Hendricks said in an interview. “And then out of the blue, I got a call.”

A native of New York's Harlem neighborhood, Mr. Hendricks said, “I'm going back to the kind of community I once came out of.”

Still, Urban Partnership Bank, which caters to low-income neighborhoods on the city's South and West sides, is a far different animal than Citibank. Citi is a mass-market player, with about 70 Chicago-area branches and more than $12 billion in local deposits as of a year ago, the most recent data available. Urban Partnership Bank had $785 million in deposits as of June 30 and serves a lower-income clientele.

“We want to be a reasonable alternative to payday loans and check cashing operations in our marketplace,” Mr. Hendricks said.

The bank also is piloting a prepaid card soon.

Mr. Hendricks spent 30 years with Citibank, the last 10 of them as Illinois president. He's the latest African-American veteran of larger Chicago financial institutions to join Urban Partnership Bank in hopes of establishing a sustainable model of actively lending in low-income urban neighborhoods. UPB CEO William Farrow is a veteran of First Chicago Corp., and Chief Banking Officer Levoi Brown came from GE Capital Corp. Mr. Hendricks reports to Mr. Brown.

With $892 million in assets as of June 30, UPB is far smaller than ShoreBank, which at one time topped $2 billion in assets.