Inside these posts: ShoreBank Corp.

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ShoreBank successor boosts online savings rates

Urban Partnership Bank, the successor to the recently failed ShoreBank, has already boosted the interest rates on a couple of savings accounts for its online ShoreBank Direct.

The ShoreBank Direct Online Savings Account now pays a 1.25 percent annual percentage rate with a $100,000 minimum balance, up from 1.19 percent. It also pays  1.2 percent for balances of less than $100,000, up from 1.03 percent.

The rate hikes were first reported by, a tracker of bank account trends. Get the full story »

ShoreBank’s buyer lays off 60 employees

An exterior view of ShoreBank at 3401 S. King Drive on the South Side, May 18, 2010. (Chris Walker/Chicago Tribune)

The company that bought ShoreBank has cut about 60 of the more than 300 positions at the recently failed South Side lender.

Urban Partnership Bank, the newly formed group that on Aug. 20 acquired ShoreBank through a deal brokered by the Federal Deposit Insurance Corp., said the job cuts were “a difficult decision.”

But “a smaller workforce is needed going forward in order for Urban Partnership Bank to continue the mission and to be a strong, sustainable player in our communities,” said Brian Berg, spokesman for Urban Partnership Bank. Get the full story »

Shorebank’s financial hole deepens

ShoreBank’s capital deficiency worsened in the second quarter, according to newly submitted financial results to regulators, and the Chicago-based lender now needs to raise at least $190 million just to meet targets set out in March by state and U.S. banking regulators.

The South Side bank has arranged a capital infusion of about $150 million from Wall Street investment firms, big banks, insurance companies and philanthropic groups. It’s hoping that private investment will then make it eligible for about $75 million in bailout funds from the U.S. Treasury Department. Get the full story »

Sources say ShoreBank bailout looks doubtful

From Fox Business News | Senior executives at major Wall Street banks say they doubt that community lender ShoreBank, despite its ties to the Obama White House, will be able to survive a government takeover and eventual liquidation that a bailout was designed to prevent. Just a few weeks ago, the officials thought they had contributed enough money to bail out the bank.

ShoreBank reports $17.3 million first-quarter loss

By Becky Yerak | ShoreBank lost $17.3 million in the first quarter and saw its capital
ratios worsen at a time when it’s trying to raise capital from both
existing and new investors.

The undercapitalized bank, besides hoping to tap such existing investors
as JPMorgan Chase and Citigroup, also wants to try to raise money from
State Farm, which has a tentative commitment. It also plans to hit up such
local institutions as Northern Trust, Wintrust and MB Financial, a
person familiar with ShoreBank’s situation said.

Get the full story »