Urban Partnership Bank Moving Forward; On Course with Strategic Plan, Preserving Capital for Commercial Lending

CHICAGO, ILLINOIS -  Urban Partnership Bank (UPB, www.upbnk.com) the community bank established in 2010 has announced that consistent with its strategic plan, it is on track to continue to deploy capital in low and moderate income (LMI) neighborhoods through commercial lending in the upcoming year.

Since its inception, the Bank has worked to resolve over $1 billion in ShoreBank troubled loans, initiated job creation and affordable housing opportunities in LMI communities and supported those communities through charitable contributions and employee volunteer engagement.  The bank has also originated over $275 million in new loans and commitments over that time frame to drive economic growth in those communities.

“Urban Partnership’s mission has always been to build communities by strengthening their local businesses,” said President and CEO William Farrow.  “In order to be successful in our mission, we knew the first few years would require difficult decisions and a leaner business model, but our results to date show we are doing the work that will ultimately grow our communities.”

To date, the Bank has financed the development and rehabbing of more than 1,000 units of affordable housing in communities across Chicago and Detroit, some 4,800 jobs have been created or saved, and over $58 million in loans to faith-based organizations – the pillars of many inner-city neighborhoods – have been restructured.  Through its job creation and commercial lending UPB is fulfilling its mission of building vibrant communities that are economically sustainable. 

“Without question, the work that UPB is doing is important but it is also very costly and resource-intensive, which impacts the Bank’s profitability,” said Farrow.  “However, we have a plan that will allow us to better focus our resources on our core commercial lending business.”

In order to preserve capital to continue the commercial lending that will serve as the bedrock for LMI neighborhoods, UPB intends to sell certain loans from its ShoreBank legacy loan portfolio before the end of the calendar year.  The sale is being advised by First Financial Network (FFN).

“Because of its track record, we are confident FFN will help source buyers with strong servicing capabilities, allowing us to focus on our core mission of deploying capital into the neighborhoods we serve, “ said Farrow.

For the third quarter of 2015, the bank had an operating loss of $1.3 million, excluding a writedown of its indemnification asset.  Its Tier 1 leverage capital ratio exceeds 7%, above the guidelines for a well-capitalized institution. 

Moving forward, UPB will continue to develop and implement business practices that will identify and provide additional capital that will be utilized for the ongoing economic development of LMI neighborhoods. 

About First Financial Network

Since its founding in 1989, FFN has defined the loan sale industry, selling billions of dollars in loans and other assets in 28 countries.  The company provides loan valuation, compliance reviews, due diligence and loan sale advisory services to banks, agencies of the Federal government, major foreign banks and other lenders.  The company’s online Loan Sale Network platform is used in conjunction with exceptional marketing techniques to achieve optimal value in today’s loan sales market.  For further information, call 405.748.4100 or visit www.ffncorp.com.

About Urban Partnership Bank

Urban Partnership Bank is an FDIC-insured, certified Community Development Financial Institution with approximately $650 million in assets that was established when it acquired the deposits and some of the assets of ShoreBank from the FDIC in August of 2010.  Its mission is to make a difference every day: building vibrant urban neighborhoods, promoting economic and environmental sustainability and creating long-term success for its communities and the bank.  Visit www.upbnk.com to learn more.

Contact:  Monica Carney