ShoreBank

Infobox Company
company_name = ShoreBank (SBK)
company_
company_type = Community Development Bank, Green Bank
foundation = 1973
location = Chicago, Illinois
origins =
key_people = Ron Grzywinski,
Mary Houghton,
Joseph E. Hasten
area_served =
industry =
products = Financial Services
Microfinance
assets = $2.4 B. USD (2008)
revenue =
operating_income =
net_income =
num_branches =
num_employees =
parent =
subsid =
homepage = [http://www.sbk.com www.sbk.com]
footnotes =

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 $2.1 billion in assets [http://www.spokesmanreview.com/business/story.asp?ID=194303] and has affiliates across the United States and international consulting projects.

Founding

ShoreBank was founded in 1973, [Thomsen, Mark. " [http://www.socialfunds.com/news/article.cgi/673.html ShoreBank Surpasses $1 Billion in Community Development Investment] ", "Social Funds", 2001-11-1. Retrieved on January 8, 2007] 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. Douthwaite, Richard. " [http://www.feasta.org/documents/shortcircuit/index.html?sc4/shorebank.html "How a Bank can Transform a Neighborhood] ", "Short Circuit". Retrieved on January 8, 2007] 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. [Rafter, Dan. " [http://www.whatsyourmotto.com/Articles/shorebank.aspx Uncommon Vision] ", "Motto". Retrieved on January 9, 2007] Although mission-based, the bank's financial performance regularly matches or exceeds that of its peer banks.Marshall, Katherine. [http://mesh.medill.northwestern.edu/mnschicago/archives/2005/05/shorbank_shoreb.html "ShoreBank gauges success by profit and community impact"] , Medill News Service, "Northwestern University", May 17, 2005, retrieved September 19, 2007]

ShoreBank now has branches in Chicago’s South and West sides, Cleveland, and Detroit. It has affiliates in Oregon and Washington state, and in Michigan’s Upper Peninsula. ShoreBank’s international consulting services have offices in Chicago, Washington, D.C., and London, and projects in 30 countries around the world.

History

In 1975, the bank became profitable, and has remained profitable every year since.

In 1977, ShoreBank co-founder Ron Grzywinski was the only banker to testify before congress in favor of the Community Reinvestment Act of 1977 which required banks and thrifts meet the credit needs of the communities in which they did business, including low- and middle-income residents. Thanks in part to Ron’s testimony, it was enacted by congress later that year. [US Congress. " [http://www.fdic.gov/regulations/laws/rules/6500-2515.html HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1977] ", 1977. Retrieved on January 8, 2007]

In the early 1980’s, ShoreBank worked with Muhammad Yunus in Bangladesh to help him design and launch the Grameen Bank, under a grant from the Ford Foundation. [Glenn, Brandon. [http://www.chicagobusiness.com/cgi-bin/news.pl?id=22455&rel=1 "ShoreBank leaders had hand in Nobel Prize"] , "Crain's Chicago Business", 2006-10-16. Retrieved on January 8, 2007]

In 1982, ShoreBank launched mission-based "Development Deposits," a program encouraging persons from across the country to keep their savings with ShoreBank. The customers received a competitive rate, but had the added bonus of knowing that their money was supporting projects in ShoreBank target communities.

In 1985, ShoreBank worked closely with then Arkansas Governor Bill Clinton to set up the Southern Development Bancorporation, a community development bank serving rural Arkansans. [http://shorebank.blip.tv/#1262634] During this project, ShoreBank introduced Bill Clinton to Muhammad Yunus. Clinton later credited ShoreBank’s success with inspiring a movement of community development financial institutions (CDFI’s). [Clinton, William. " [http://www.clintonfoundation.org/legacy/071593-speech-by-president-on-community-development.htm REMARKS BY THE PRESIDENT IN ANNOUNCEMENT OF COMMUNITY LENDING INITIATIVE] " White House South Lawn, 1993-7-15. Retrieved on January 8, 2007] In a 1992 speech, Clinton called ShoreBank “the most important bank in America."

In the mid 1990’s, ShoreBank helped develop a triple-bottom line approach to banking—a system equally prioritizing profits, impact on people, and the impact of a project on the environment. In 1997, ShoreBank launched ShoreBank Pacific, the nation’s first commercial bank formed to support environmentally sustainable development. [Iowa State University. " [http://www.leopold.iastate.edu/news/pastevents/shorebank/shorebank.htm Investing for Triple Bottom Line Returns] ", 2006-6-1. Retrieved on January 8, 2007] ShoreBank Pacific scores potential loan customers based on the sustainability of their operations, environmental impact, and similar factors. [Weinberger, Dawn. " [http://www.portlandtribune.com/sustainable/story.php?story_id=115793363057160400 Company banks on the environment] ", "Portland Tribune", 2006-9-10. Retrieved on January 8, 2007] In Chicago, Detroit, and Cleveland, ShoreBank has pioneered lending for projects involving Green Building, urban environmental conservation, and energy efficiency.

At the end of 2000, the South Shore Bank was officially renamed ShoreBank.

In 2004, ShoreBank founded The Center for Financial Services Innovation to encourage the financial services sector to serve unbanked and underbanked consumers.

In late 2007, ShoreBank became the first community development and environmental bank to launch an online, high-interest savings account. [http://www.suntimes.com/business/568052,CST-FIN-shore21.article]

Today ShoreBank’s success is reflected in the global reach of its affiliates like ShoreBank International. ShoreBank continues to reflect the diversity of the communities it serves. Two-thirds of its more than 500 employees are African-Americans.

Currently, ShoreBank Corporation is the holding company for ShoreBank.

Affiliates of ShoreBank Corporation

* [http://www.sbk.com ShoreBank] (in Chicago, Detroit, and Cleveland)
* [http://www.sbksbi.com ShoreBank International]
* [http://www.eco-bank.com/ ShoreBank Pacific]
* [http://www.sbpac.com/bins/site/templates/splash.asp ShoreBank Enterprise Cascadia]
* [http://www.shorebankenterprisegroup.org/ ShoreBank Enterprise Cleveland]
* [http://www.northerninitiatives.com/ Northern Initiatives]
*ShoreBank Enterprise Detroit
* [http://www.cfsinnovation.com/index.php Center for Financial Services Innovation]
* [http://www.shorecap.net/bins/site/templates/splash.asp ShoreCap International]
* [http://www.shorecapexchange.org/about.php ShoreCap Exchange]
* [http://www.shorebankneighborhoodinstitute.org/ ShoreBank Neighborhood Institute]

Awards

In 1988, ShoreBank founder Ron Grzywinski received the Medal for Entrepreneurial Excellence from the Yale School of Management. [ [http://www.fdic.gov/news/news/press/2006/pr06100a.html "FDIC Advisory Committee on Economic Inclusion"] , FDIC press release, November 2, 2006, retrieved September 19, 2007]

In 2000, ShoreBank received the Community Investing Hall of Fame Award from Business Ethics magazine for “trailblazing efforts in community development financing." [First Sustainable. " [http://www.firstsustainable.com/view.php?show=153 Business Ethics Announces Six Social Investment Award Winners] ", "SRI News", 2000-4-2. Retrieved on January 8, 2007]

In 2004, ShoreBank cofounder Mary Houghton was named “Community Banker of the Year” by American Banker magazine for her work making ShoreBank “the gold standard of community development banks." [Cook, Tim. " [http://www.icba.org/news/newsreleasedetail.cfm?ItemNumber=4738&sn.ItemNumber=1733 ICBA Congratulates Houghton on Community Banker of the Year Award] ", "ICBA", 2004-12-1. Retrieved on January 8, 2007]

Also in 2004, ShoreBank received the Workforce 2.0 Award from Mayor Richard M. Daley of Chicago. [Clutter, Charles. " [http://www.cael.org/newsroom/WFC2_awards_PR.pdf Mayor Daley Awards Local Companies Employee Development Achievements" (pdf)] , "workforceChicago2.0", 2004-6-2. Retrieved on January 8, 2007]

In 2005, ShoreBank cofounder Ron Grzywinski received the John W. Gardner Leadership Award from the Independent Sector recognizing a career that has "transformed underserved neighborhoods into vibrant communities and inspired a community development banking movement worldwide." [The Independent Sector. " [http://www.independentsector.org/media/20050607_gardner.html Independent Sector to honor ShoreBank CEO Ronald Grzywinski with the 2005 John W. Gardner Leadership Award] ", "www.independentsector.org", 2005-6-8. Retrieved on January 8, 2007]

Also in 2005, the Independent Community Bankers of America conferred to ShoreBank the National Community Bank Service Award. [Cook, Tim. " [http://www.icba.org/news/newsreleasedetail.cfm?ItemNumber=9117&sn.ItemNumber=1733 ICBA Announces National Community Bank Service Award Winners] ", "ICBA", 2005-4-29. Retrieved on January 8, 2007]

In 2006, ShoreBank cofounders Ron Grzywinski and Mary Houghton received the Gleitsman Citizen Activist Award at Harvard University for their work transforming "under-served urban neighborhoods across the country into vibrant communities." [The Gleitsman Foundation. " [http://www.gleitsman.org/ Statement of Purpose] ", "www.gleitsman.org". Retrieved on January 8, 2007]

In 2006, ShoreBank received the Right Workplace Award from the Chicagoland Chamber of Commerce. [Chicagoland Chamber of Commerce. " [http://www.chicagolandchamber.org/sub/initiatives_detail.asp?INI_ID=331 Four Chicagoland Businesses Recognized for Workplace Innovations] ", "www.chicagolandchamber.org". Retrieved on January 8, 2007]

In 2007, ShoreBank cofounder Ron Grzywinski was named to the Affordable Housing Finance Hall of Fame. [http://www.housingfinance.com/ahf/articles/2007/oct/BANKER1007.htm]

In November of 2007, ShoreBank cofounders Ron Grzywinski and Mary Houghton were named to U.S. News & World Report's list of America's Top Leaders. [http://www.usnews.com/features/news/special-reports/best-leaders.html?s_cid=related-links:TOP]

In 2008, ShoreBank received the Social Capitalist Award from Fast Company magazine. [http://www.fastcompany.com/social/2008/profiles/shorebank.html]

In 2008, ShoreBank cofounders Ron Grzywinski and Mary Houghton received the Hesburgh Award for Ethics in Business from the University of Notre Dame. [http://newsinfo.nd.edu/content.cfm?topicid=27488]

ources

*"Democracy's Edge : Choosing to Save Our Country by Bringing Democracy to Life" by Frances Moore Lappe, Jossey-Bass Publishers, 2005 (ISBN 0787943118)

*Johnston, Chris. " [http://worldbenefit.cwru.edu/inquiry/feature_sb.cfm ShoreBank: A self-sustaining institution"] , Center for Business as an Agent of World Benefit, 2004. Retrieved on January 8, 2007.

*Sachdev, Ameet: "Nobel winner's bank has Chicago interest", "Chicago Tribune", 11/22/2006

*"Uncommon Vision", "Motto", premier issue, 2006

*Marcus, Craig: "Beyond the Boundaries of the Community Reinvestment Act and the Fair Lending Laws: Developing a Market-Based Framework for Generating Low- and Moderate-Income Lending", "Columbia Law Review" Vol. 96, No. 3 (Apr., 1996), pp. 710-758

*Wisniewski, Mary. " [http://www.findarticles.com/p/articles/mi_qn4155/is_20050216/ai_n11842188 Milton Davis, community banking pioneer] ", "Chicago Sun-Times", 2005-16-12. Retrieved on January 9, 2007.

Notes

External links

* [http://www.shorebankcorp.com/ ShoreBank Corporation]