Thursday, September 6, 2018 || By Michael Romain | @maywoodnews
Featured image: Urban Partership Bank in Bellwood.
In a joint statement released on Sept. 6, Providence Bank & Trust and Urban Partnership Bank announced that they have reached an agreement for Providence to acquire Urban Partnership. The two banks will combine their operations.
“Pending regulatory approval, Urban Partnership Bank, a community development financial institution and minority depository institution with approximately $450 million in assets, will operate under the name Providence Bank & Trust,” according to the statement.
Providence has 12 locations throughout the Chicago area and Northwest Indiana. Urban Partnership Bank, which was founded in 2010 in order to provide financial services and products to under-banked communities, has four Chicago area locations — including one 4310 St. Charles Rd. in Bellwood.
In an interview with the Chicago Sun-Times on Wednesday, Urban Partnership’s president and CEO, Darrell Hubbard, said that his bank was still hurting after buying $1.3 billion of failed assets from ShoreBank, a community development bank, nearly a decade ago.
“Quite frankly, after climbing through a billion dollars of restructuring, eight years later, what Urban Partnership thought it was going to be in terms of size has been greatly reduced,” Hubbard told the Chicago Sun-Times.
According to the Sun-Times, “Providence will maintain the four Urban Partnership branches.” Providence has approximately $630 million in assets.
“Our investment in Urban Partnership Bank reflects the growing economic vibrancy of their service area,” said Steve VanDrunen, the president and CEO of Providence Bank & Trust, in the joint statement.
“We’re confident that customers will have a positive banking experience, as we will ensure the high level of service that customers and partners have grown accustomed to,” he said.
In the statement, Hubbard said that the combined institution “will provide a stronger banking network and enhanced services for our customers.”
He added that customers “will have access to an array of services, including access to customer banking products not currently offered, an improved online banking platform [and] increased lending options for our commercial customers and small businesses.”
Terry Van Der Aa, the chairman of Providence, said in the joint statement that the combined institution will expand the Stewardship Program that Providence created in 2004 to Urban Partnership communities.
The program sets aside 10 percent of the bank’s profits for donations to local civic, non-profit and Christian organizations. VFP
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