Shorebank was one of the early pioneers in sustainable community banking. Their success has paved the way for expansion in the Pacific Northwest, and indirectly spawned the likes of New Resource Bank (SF), Green Bank (Houston). With community banks getting recent press due to the Ariana Huffington-sponsored Move Your Money campaigns, this model of community banking should be encouraged in every way possible, if only to provide competitive pressure against the big four.
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David Anderson (davidryal)
Feb 13, 2010
Aug 2, 2011 10:46 PM UTC
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ShoreBank is an American community development bank and green bank. It was founded in 1973 in Chicago. A pioneer in profitably lending to underserved urban and rural communities, ShoreBank has grown to over $2 billion in assets and has affiliates across the United States and international consulting projects. Founding ShoreBank was founded in 1973, when Milton Davis, James Fletcher, Mary Houghton, and Ron Grzywinski purchased the South Shore Bank at 71st Street and Jeffery Boulevard in Chicago’s South Shore neighborhood to fight redlining and prevent the bank’s relocation due to white flight and demographic change in South Shore. At the time, one third of all apartment buildings in South Shore were tax-delinquent and in danger of abandonment by landlords.
Over the last thirty years, loans made by ShoreBank, especially home mortgage loans and loans to small businesses, have contributed to the economic resurgence of Chicago neighborhoods like Kenwood, Chatham, Bronzeville, Austin, and, most dramatically, South Shore. Over one-quarter of all mortgage and rehab loans in the South Shore area have been made through ShoreBank. ShoreBank has helped finance the purchase and renovation of 49,000 affordable housing residences. Between 2000 and 2006, it issued nearly $900 million in loans to citizens in Chicago, Detroit, and Cleveland. Although mission-based, the bank's financial performance regularly matches or exceeds that of its peer banks.