ShoreBank successor reports profit

By Becky Yerak
Posted Nov. 1, 2010 at 8:32 a.m.

The new bank that took over the operations of failed ShoreBank on Aug. 20 made a $25.4 million net profit in the period ending Sept. 30, according to newly filed documents with the Federal Deposit Insurance Corp.

Results of Urban Partnership Bank, whose investors include Goldman Sachs, General Electric and Citigroup, included $41.5 million of noninterest income related to what’s called “gains on bargain purchases.”

That’s the result of the discount earned on the purchase of ShoreBank’s assets. Such gains aren’t unusual in deals in which the FDIC arranges for another institution to take over the deposits and assets of a failed bank.

Urban Partnership has $1.38 billion of total assets, of which $848.1 million is loans. It also has $33.7 million in securities, most of which are issued by U.S. government-sponsored agencies.

Total deposits are $1.12 billion.

The bank, whose top staffers have been recruited from the old First Chicago, has total capital of $163.1 million, the 69-page filing shows. That exceeds the level at which a bank is considered well capitalized.

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