Urban Partnership Bank
| Company type | Private |
|---|---|
| Industry | Banking, Financial services |
| Founded | August 20, 2010 in Chicago, Illinois, United States |
| Founder | Former ShoreBank executives |
| Defunct | January 30, 2019 |
| Fate | Acquired by Providence Bank & Trust |
| Headquarters | Chicago , United States |
Area served | Chicago, Cleveland, Detroit |
Key people | William Farrow (President), David Vitale (Executive Chairman) |
| Products | Community development banking, prepaid cards, micro-branches |
Number of employees | (not specified) |
Urban Partnership Bank operated as a Federal Deposit Insurance Corporation-insured, full-service community development bank within the United States, managing assets totaling $1.4 billion. It was established on August 20, 2010, by acquiring deposits and select assets from ShoreBank through the FDIC. Based in Chicago, Illinois, the bank was ultimately purchased by Providence Bank & Trust on January 30, 2019, following a period of sustained financial losses.
The institution’s core mission centered on the economic and environmental sustainability revitalization of urban neighborhoods in underserved communities across Chicago, Cleveland, and Detroit. Its customer base comprised individuals, small enterprises, nonprofit organizations, foundations, and faith-based groups, with a particular focus on addressing the needs of underbanked populations.
Origin
Urban Partnership Bank was launched in 2011 by former ShoreBank executives after the FDIC approved their acquisition of ShoreBank via this newly chartered entity—a notable exception given ShoreBank’s collapse. William Farrow, who had served as ShoreBank’s President and was brought in to manage capital raising prior to its failure, continued as leader of the new bank. The institution’s financial foundation was supported by capital contributions amounting to $140 million from leading U.S. banks, alongside FDIC write-downs on nonperforming assets that cost taxpayers $367.7 million, coupled with a loss-share agreement covering future asset impairments.
The bank took over all of ShoreBank's $1.54 billion in deposits and the majority of its $2.16 billion in assets. Losses on $1.41 billion of those assets were shared between the FDIC (20%) and Urban Partnership Bank (80%). Initial capitalization approached $140 million.
In July 2011, Urban Partnership Bank achieved certification as a community development financial institution (CDFI), allowing other financial entities to earn Community Reinvestment Act credit for deposits made and gain access to CDFI Fund initiatives aimed at urban renewal.
Additionally, it received designation as a Minority Depository Institution (MDI), underscoring its dedication to enhancing community prosperity.
Operations history
Following multiple years of financial deficits, the bank implemented cost-cutting measures in 2016 by downsizing its branch network and workforce. These efforts led to stabilized results in Q4 and recorded its first profitable quarter. In September 2018, Providence Bank & Trust of South Holland, Illinois—operating 12 branches in the Chicago area—announced plans to acquire Urban Partnership Bank; the transaction was finalized on January 30, 2019.
Leadership
Experienced banking professionals with strong community connections guided Urban Partnership Bank. President William Farrow and Executive Chairman David Vitale expressed personal commitment to advancing ShoreBank’s original mission.
Serving the underbanked
Positioning itself as an affordable alternative to currency exchange services, the bank provided options such as prepaid cards targeting unbanked customers. It transitioned from large branch offices toward “micro-branches” and customized full-service locations designed to meet client needs.
Branch locations
Urban Partnership maintained branches across Chicago neighborhoods including Chatham, Austin, Bellwood, Bronzeville, Greater Grand Crossing, South Shore, Kenwood, Loop, West Ridge, and Stone Park; it also operated offices in Cleveland and Detroit.