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Seven Major Milestones a Progress Report on Our First 16 Months

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Seven Major Milestones a Progress Report on Our First 16 Months Seven Major Milestones A Progress Report on Our First 16 Months A message from our CEO In 2010, we began with a great Dear Friends, legacy. Today, I am pleased to report on the outstanding progress we have made since our bank was established in August 2010. we’re becoming a great bank. As you will see, we have maintained our commitment to serving low- to moderate-income urban communities and have taken When we established Urban significant steps to build a new bank that is strong, secure, and Partnership Bank in 2010, we well-positioned for long-term success. And we have accomplished knew that building a new bank all this while continuing to serve the thousands of customers who out of a failed bank would pre- Urban Partnership Bank celebrated the opening of a new Loop location at 55 E. Jackson, where count on us to provide excellent personal service every day. sent uncommon challenges. we teamed up with Investing In Communities to help strengthen our neighborhoods. Needless to say, it has been a challenging task—one that at times But we also knew that it would has seemed like changing the tires on a moving car. But it is one offer incredible opportunities. that everyone at Urban Partnership Bank knows is worth every Making a ounce of effort we are putting into it. In our first 16 months, we have taken a variety of steps to meet difference Indeed, despite the growing evidence that our nation has begun to those challenges and seize recover from the Great Recession, we see every day that the urban those opportunities. And today every day communities we serve continue to struggle. And that is why Urban a great, new bank—one that Partnership Bank is deeply committed to our mission. As a com- goes beyond ShoreBank’s Urban Partnership munity development bank, we understand that our job is to create legacy of community develop- Bank’s mission is to hope and opportunity in places where hope and opportunity are ment—is on the rise. needed most. make a difference This report describes seven every day: My own hope—and my expectation—is that this progress report important milestones we will prove to be just the first chapter in the long story of the crea- have achieved since Urban serving our tion of a great new bank. But I also know that it’s not what we Partnership Bank was formed customers publish that counts. It’s what we do, day in and day out, that makes in 2010. While our journey has a difference. I would like to thank all of our customers for their just begun, we are very proud building vibrant continuing support. I would also like to thank our management, of how far we have come in neighborhoods staff, and board for their hard work and dedication. Let us all such a short time. And we are continue working together to build a bank that is as great as was confident that each step we promoting economic the legacy on which it was founded. have taken is bringing us closer and environmental to a brighter future for our Sincerely, institution and for the commu- sustainability nities we serve. and creating long-term success William Farrow for our communities President and CEO and bank Urban Partnership Bank Seven Major Milestones 1 16 Months, 7 Major Milestones Developed a new business model to 1make a difference Urban Partnership Bank is proud to build on our legacy as a community development bank. We serve distressed and underserved urban communi- ties in Chicago, Cleveland, and Detroit, providing low-cost, responsible financial services and products to help people build a strong financial foun- dation for the future. We also provide financing to help small businesses grow, to strengthen nonprofits and faith-based organizations, and to renovate and acquire commercial and residential real estate. Our ability to accomplish this mission depends not just on Members of the Urban Partnership Bank leadership team Back row, left to right: Terrence Young; Brian Jones; Edward Karasek; Levoi Brown; Darrell Hubbard; Daryl Newell; Kirkland Jones our good intentions, but also Front row, left to right: Kim Lynch; Suzanne Griffith; Robert Marjan; Brian Berg; Joel Ramos; Robert Dennis; Terrell Anderson on our financial strength. So Not shown: Gregory Champlain; Dan Hollowed; Jan Hoffenkamp; Michael Morrell; William Morfoot one of our first steps was to develop a new business model we are well-positioned to grow Today, Urban Partnership Bank in Chicago, Cleveland, and designed to ensure our long- stronger in the years to come. is led by a team of proven Detroit, and is playing a vital term success. professionals with extensive role in our efforts to catalyze Urban Partnership Bank’s new experience in financial services sustainable development business model calls for a di- Strengthened our and deep roots in our com- opportunities that will build munities—people such as better lives and vibrant urban versified loan portfolio that is leadership team spread among a wide variety Levoi K. Brown, our Director neighborhoods. of Commercial Banking. of categories—including small- 2We understand that a new Another new hire, Darrell business loans, real estate business model requires new A native and resident of Hubbard, recently joined our loans, and consumer loans— leadership. So, in addition to Chicago’s South Shore neigh- team as Director of Business in communities where financial retaining selected ShoreBank borhood, Brown came to Urban Banking. Darrell has a broad services are too often unavail- executives, we have hired Partnership Bank in January background in business able. And before we make any several experienced managers 2011 from General Electric Real development, most recently loan, we follow a rigorous and from other financial institu- Estate, where he spent nearly a at the National Equity Fund, as disciplined lending process. tions and community develop- decade in the company’s Senior Vice President of ment organizations for critical Today, Urban Partnership Bank Affordable Housing Group and Investment Management. positions within our organiza- Capital Markets Services. He is is a well-capitalized, financially tion. We have also recruited an And Terrence Young, Director secure institution with more responsible for our commercial entirely new Board of Directors. and multi-family real estate of Commercial Real Estate, than $1.3 billion in assets. And came to Urban Partnership with our new-business model, and business banking portfolio Seven Major Milestones 2 Bank with extensive commu- Managed agreement with the FDIC The result: We have kept nity development experience, stipulating that it would cover borrowers in their homes, having spent more than a thousands of 80 percent of the losses we prevented businesses from dozen years at Fannie Mae problem loans incurred on these loans. closing—and made our organ- and, before that, at First 3 ization stronger, healthier, and National Bank of Chicago. Among the assets Urban Before we could begin lending, more stable in the process. Partnership Bank acquired we had to manage this $800 They join a core of strong from the Federal Deposit Insur- million loan portfolio. Since professionals from ShoreBank ance Corporation in August September 2010, we have Upgraded our —like Terrell Anderson, 2010 were nearly 6,000 loans, reviewed nearly the entire Director of Treasury Manag- 30 percent of which were troubled-loan portfolio. And branch system ement Services & Nonprofit classified as troubled loans. while we were unable to restruc- 4 and technology to and Foundation Banking, and The amount of troubled loans ture many of the loans, we have Daryl Newell, Director of Con- has since increased because of succeeded in modifying approx- expand our reach sumer Banking. Together, our continued economic stress in imately $125 million of our From October 2011 to February new leadership team is focused our neighborhoods. When we troubled-loan portfolio. Thanks 2012, we opened four new on serving our customers, im- acquired these assets, we to these modifications, scores branches in some of Chicago’s proving our communities, and entered into a loss-sharing of problem loans have been most underserved urban succeeding over the long term. returned to performing loans. communities. Located in Austin, Bellwood, Bronzeville, and the Loop, these new branches are part of Seven Major Milestones 3 16 Months, 7 Major Milestones continued our long-term plan to create a an agency of the United States new branch system that is Department of Treasury. more convenient for our custom- ers and expands our services Urban Partnership Bank is one in neighborhoods that lack of fewer than a hundred com- access to low-cost, respon- munity development banks in sible financial services. A new the nation to be certified as a branch in Detroit opened in CDFI. We’re proud to be in such May 2012. The new branches select company. Our certifica- are smaller than the typical tion reflects our deep-seated bank branch, but they provide commitment to serve these a full range of retail services under-banked communities. and are easily accessible to all of our customers. The goal is to offer customers who do not Implemented use banks a responsible a new lending alternative to the payday 6process and lenders and other high-cost financial service providers in resumed their communities. making loans We are also upgrading our One of our major goals has technology to better serve been to implement a new people—especially younger lending process with rigorous people—in our communities, Helping kids—and creating jobs controls. And we have made who prefer to bank using com- solid progress. Tess McKenzie knows firsthand the power of small-business puters, smart phones, and loans to create jobs and improve communities.
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