CHICAGO--(BUSINESS WIRE)--Urban Partnership Bank (UPB, www.upbnk.com) announced its earnings for the fourth quarter and full year 2016. For Q4 2016, the Bank recorded a pre-tax profit of $1.4 million resulting in a net income of approximately $1.0 million.
Profitability in Q4 2016 was the direct result of the Bank completing its plan to transition from a loan workout bank to a commercial bank. The key elements were: 1) the early termination of the loss-share agreement with the FDIC and the reduction of related expenses; 2) the sale of underperforming single family loans; 3) the continued focus on new commercial loan production; and 4) the reduction of other expenses. The result is a community MDI and CDFI Bank focused on executing its core mission – importing capital into low and moderate income (LMI) neighborhoods to stimulate job and affordable housing growth.
Other financial highlights include:
- 2016 Q4 net interest income of $6.2 million.
- 2016 loan originations of $51 million and funded loans of $64 million.
- Approximately 80% of the Bank’s loans were made in LMI census track areas.
- The Bank’s equity capital at December 31, 2016 was $35.2 million, up $2.6 million from September 30, 2016.
- The Bank’s Tier 1 capital ratio at December 31, 2016 was 6.41% improving by .93 basis points from September 30, 2016.
The Bank reported a net loss of $11.5 million for FY 2016 versus a loss of $21.7 million for FY 2015. This improvement is directly related to the termination of the loss-share agreement, strong commercial loan production and expense reduction.
After almost 7 years of working through the ShoreBank loan portfolio consisting of over $1 billion of troubled loans, the Bank’s outlook for 2017 is very positive. “Our plan is to stay the course – to continue to invest in neighborhoods that are underserved. Executing our strategic plan allows Urban Partnership Bank to have a leaner organization with a single focus,” said President and CEO William Farrow. “2016 created the foundation for an ongoing sustainable Bank that serves the South and West sides of Chicago and Detroit. Our Q4 results and the stabilization in the value of our loan portfolio show we can be successful banking partners in these markets.”
About Urban Partnership Bank
Urban Partnership Bank is an FDIC-insured, certified Community Development Financial Institution with approximately $550 million in assets that was established when it acquired the deposits and some of the assets of ShoreBank from the FDIC in August of 2010. Its mission is to make a difference every day: building vibrant urban neighborhoods, promoting economic and environmental sustainability and creating long-term success for its communities and the Bank.