Inside these posts: ShoreBank

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ShoreBank successor closing 3 branches

Crain’s Chicago Business | Urban Partnership Bank, the successor to ShoreBank, plans to close branches  in the Austin neighborhood, Bellwood and Detroit by mid-May. It intends to open new facilities in those locations at some point.

Execs position former ShoreBank for growth

William Farrow, 55, remembers trying to scrape together enough money to attend graduate school.

A product of Chicago’s Englewood neighborhood, Farrow had graduated from Augustana College in Rock Island in 1977, but got nowhere in obtaining a student loan from a couple of  banks. But when he visited a branch of Northern Trust Corp., the Chicago-based bank lent him $1,500. The son of two teachers was on his way to a master’s in management from Northwestern University in 1979. Get the full story »

Urban Partnership Bank adds legal staffer

Urban Partnership Bank, the $1.4 billion-asset successor to the failed ShoreBank, has hired Maureen Bismark as its legal department’s new assistant general counsel. 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 »

ShoreBank affecting state’s prepaid tuition program

From Crain’s Chicago Business | The Illinois Student Assistance Commission, the state’s prepaid college tuition program, is caught up in the problems of ShoreBank.

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.

FDIC is seeking bidders for ShoreBank

By Becky Yerak | The Federal Deposit Insurance Corp. began seeking potential bidders late last week for ShoreBank, in case the ailing South Side lender is unable to raise capital on its own, according to sources familiar with the FDIC process.

The FDIC also is seeking a healthy bidder for the assets and deposits of troubled Midwest Bank, a midsized lender based in Melrose Park. It is allowing potential bidders for that more desirable franchise to link bids to ShoreBank, which has lent heavily in more hard-hit areas, sources say.

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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.

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ShoreBank may hire former Bank One executive

By Becky Yerak | Eileen Kennedy, who spent more than 20 years at Bank One Corp. and predecessor First Chicago NBD Corp., will join Chicago-based ShoreBank Corp. as a full-time employee — if Shorebank is able to raise much-need capital from investors.

Kennedy, the former treasurer of Bank One,  would join David Vitale, who has also agreed to join ShoreBank Corp. as chairman if its capital raise is successful. Vitale had served as vice chair and president of First Chicago and First Chicago/NBD, and as vice chair and director of Bank One.

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