Urban Partnership Bank, a Chicago bank formed to buy ShoreBank's deposits and assets from the Federal Deposit Insurance Corp. in 2010, has agreed to buy a large branch in Chicago's South Side from Northern Trust (NTRS).
Urban Partnership said in a press release Wednesday that the acquisition will include an undisclosed amount of deposits and loans. The branch had $120 million in deposits at mid-2011, according to the most recent data from the FDIC. The $1.2 billion-asset Urban Partnership did not say how much it would pay for the branch, though it said the deal should close by the end of this year.
"By acquiring deposits from a local source, we strengthen our balance sheet and build a stronger funding base," William Farrow, Urban Partnership's president and chief executive, wrote in an email to American Banker. "That allows us to make loans that make a difference in Chicago's urban communities — helping small business grow, creating much needed jobs and generating additional economic opportunities. The transaction will allow Urban Partnership Bank to continue to run off wholesale deposits, which helps us to fund loans for small businesses and real estate."
Urban Partnership is supported by roughly $140 million of capital from a consortium of big banks and foundations that banded together in an attempt to save ShoreBank, a high-profile community development bank that was often called the darling of the Clinton administration, which extensively touted the financial institution. Northern Trust is an investor in Urban Partnership.