WBEZ | lending http://www.wbez.org/tags/lending Latest from WBEZ Chicago Public Radio en Map: Where are all the community banks in Chicago -- and are they going away? http://www.wbez.org/programs/morning-shift/2012-09-25/whither-community-banks-chicago-102645 <p><p><iframe frameborder="no" height="166" scrolling="no" src="http://w.soundcloud.com/player/?url=http%3A%2F%2Fapi.soundcloud.com%2Ftracks%2F61258404&amp;show_artwork=true" width="100%"></iframe></p><p>Last week&rsquo;s sale of&nbsp;<a href="http://www.hydeparkbank.net/" target="_blank">Hyde Park Bank &amp; Trust. Co</a>&rsquo;s parent company is the latest example of community banks losing ground in a market dominated by multinationals with ATMs on every street corner and online banking. But as Crain&#39;s&nbsp;<a href="http://www.chicagobusiness.com/article/20120921/NEWS01/120929964/hyde-park-bank-gives-up-fight-will-other-community-banks-follow">reported</a>,&nbsp;what&#39;s interesting about the Hyde Park Bank sale is that they actually weren&#39;t suffering too much financially.</p><p>What drove the sale then? The bank wasn&#39;t sure they could continue to lend to community members.&nbsp;&ldquo;The environment for banks like ours is just incredibly difficult,&rdquo; said&nbsp;CEO Timothy Goodsell. &ldquo;And we don&#39;t see things getting better anytime soon . . . We could certainly continue to make money and move forward. We just felt our shareholders, employees and customers probably would be better off paired with a larger bank.&rdquo;&nbsp;</p><p>As you can see from the map below, Chicago actually has a bevy of community banks. In fact, Illinois as a whole has more community banks than any other state in the nation because of the &nbsp;remaining legacy of regulatory decisions made about 30 years ago. Illinois was one of the last states to allow branching -- where one bank opens multiple locations -- so everyone who wanted a new bank location would have to literally start another bank. &quot;As a result, we had a lot more bankers,&quot; said Crain&#39;s senior reporter Steve&nbsp;Daniels. &quot;As consolidation swept banking in the 1980s and 90s, you&rsquo;d have bankers out starting new banks, after they were consolidating. Chicago, as a result, has many more local banks.&quot;</p><p>For some in the modern age, banking locally can make them feel good, but comes with a host of problems.</p><div class="image-insert-image " style="text-align: center; "><a href="http://twitter.com/jdsommer/status/250636887335788544"><img alt="" class="image-original_image" src="http://www.wbez.org/system/files/styles/original_image/llo/insert-images/banking%20tweet%201.jpg" title="" /></a></div><div class="image-insert-image "><div class="image-insert-image " style="text-align: center; "><a href="http://twitter.com/jdsommer/status/250637269424295936"><img alt="" class="image-original_image" src="http://www.wbez.org/system/files/styles/original_image/llo/insert-images/banking%20tweet%202.jpg" title="" /></a></div></div><p>A few notes about the map below: for ease of use, we&#39;ve lumped banks by color that have more than 3 branches so you can see the community banks and their reach. The rest are all in blue; click around to see the names and locations of the banks. By our count, there are over forty community banks in Cook County, but reportedly around 300 in the greater Chicago metropolitan area; the former are displayed below. The information comes from a list provided by&nbsp;The <a href="http://www.cbai.com/">Community Bankers Association of Illinois</a>. (Not all local banks are members of CBAI).</p><p><iframe frameborder="0" height="450" marginheight="0" marginwidth="0" scrolling="no" src="https://maps.google.com/maps/ms?msa=0&amp;msid=213344537951060245026.0004ca88eaf01da1190c2&amp;ie=UTF8&amp;t=m&amp;ll=41.86547,-87.71347&amp;spn=0.460219,0.850067&amp;z=10&amp;output=embed" width="620"></iframe></p></p> Tue, 25 Sep 2012 12:49:00 -0500 http://www.wbez.org/programs/morning-shift/2012-09-25/whither-community-banks-chicago-102645 The unseen consequences of leaving a data trail http://www.wbez.org/episode-segments/2012-02-13/unseen-consequences-leaving-data-trail-96289 <img typeof="foaf:Image" src="http://llnw.wbez.org/segment/photo/2012-February/2012-02-10/5769368009_c566ea6f13_z.jpg" alt="" /><p><p>As Americans spend more of their lives online, companies are finding an increasing number of ways to follow our data trails and find out all sorts of things about our spending habits, our likes and our dislikes.</p><p>The information is being used to determine things like a person’s access to credit, employability and insurance coverage.</p><p><em>Eight Forty-Eight</em> guest <a href="http://www.newcreditrules.com/" target="_blank">Kevin Johnson</a> discussed a letter he received from a credit card company that said they lowered his credit limit because of where he shopped.</p><p><a href="http://www.kentlaw.edu/faculty/landrews/" target="_blank">Lori Andrews</a>, a professor at Chicago-Kent College of Law, explained the legal implications.</p><p>And Erin Peterson, head of talent acquisition for <a href="http://www.aon.com/human-capital-consulting/default.jsp" target="_blank">Aon Hewitt</a>, answered why employers care more and more about candidates’ social media profiles.&nbsp;</p><p>&nbsp;</p></p> Mon, 13 Feb 2012 14:00:00 -0600 http://www.wbez.org/episode-segments/2012-02-13/unseen-consequences-leaving-data-trail-96289 Housing groups salute banking giant for rehab deal http://www.wbez.org/story/austin/housing-groups-salute-banking-giant-rehab-deal <img typeof="foaf:Image" src="http://llnw.wbez.org/Hartnack_0.JPG" alt="" /><p><p>One of the nation&rsquo;s largest banks Friday provided details about an agreement with some nonprofit groups in Chicago-area neighborhoods devastated by foreclosures. <br /><br />The deal, <a href="http://www.wbez.org/story/austin/us-bancorp-cuts-deal-housing-advocates">revealed Wednesday by WBEZ</a>, stems from the collapse of Oak Park-based banking chain FBOP Corp. The company&rsquo;s flagship, Park National Bank, was known for donations and loans in low-income areas. In 2009, federal authorities took over FBOP and sold it to Minneapolis-based U.S. Bancorp, the parent of U.S. Bank.<br /><br />U.S. Bancorp said it couldn&rsquo;t fill Park National&rsquo;s shoes in the community. After protests, though, the banking giant last fall started negotiating with a coalition of nonprofit housing groups. The two sides reached a deal a few weeks ago and kept it quiet until this week.<br /><br />U.S. Bancorp is promising $600,000 in interest-free loans this year to buy six foreclosed homes in Chicago&rsquo;s Austin neighborhood and Maywood, a suburb nearby. Community groups will then renovate them and sell them at cost. If the effort breaks even, U.S. Bancorp will lend another $800,000 next year and $1 million more in 2013, bringing the total to $2.4 million.<br /><br />To celebrate the deal, U.S. Bancorp officials flew in for a gathering outside an Oak Park branch Friday. They included Richard Hartnack, vice-chairman of the company&rsquo;s consumer and small-business banking.<br /><br />Could this agreement be a model for banks and community groups to soften effects of the nation&rsquo;s housing crisis? Or is the deal just a U.S. Bancorp public-relations ploy? We got a chance to ask Hartnack at the celebration and included his responses in this WBEZ segment:<br /><br /><span player="null" class="filefield_audio_insert_player" id="filefield_audio_insert_player-89527" href="/sites/default/files/story/insert-image/2011-march/2011-03-04/bank2way110304cm.mp3">bank2way110304cm.mp3</span></p></p> Fri, 04 Mar 2011 20:59:00 -0600 http://www.wbez.org/story/austin/housing-groups-salute-banking-giant-rehab-deal U.S. Bancorp cuts deal with housing advocates http://www.wbez.org/story/austin/us-bancorp-cuts-deal-housing-advocates <img typeof="foaf:Image" src="http://llnw.wbez.org/Virgil_Crawford.JPG" alt="" /><p><p>One of the nation&rsquo;s largest financial firms will fund some nonprofit groups in Chicago-area neighborhoods devastated by foreclosures. <br /><br />Minneapolis-based U.S. Bancorp, the parent of U.S. Bank, has faced pressure from community groups in West Side neighborhoods and nearby suburbs since 2009, when it purchased an Oak Park-based banking chain, FBOP Corp., as part of a federal rescue.<br /><br />FBOP units included Park National Bank, a Chicago-area lender known for charity and investment in low-income areas. U.S. Bancorp said it couldn&rsquo;t fill those shoes, but last fall started negotiating with a cluster of West Side groups called the Coalition to Save Community Banking.<br /><br />Now they&rsquo;ve inked an agreement. U.S. Bancorp will put up $600,000 for rehabbing six foreclosed homes, according to the coalition&rsquo;s Rev. Catherine Palmer. Three of the homes are in Chicago&rsquo;s Austin neighborhood and three are in Maywood, a suburb nearby.<br /><br />Palmer says U.S. Bancorp will contribute a smaller sum for housing advocacy by the coalition and four other groups: Bethel New Life, Inc.; South Austin Coalition; Westside Health Authority; and Maywood-based Housing Helpers, Inc.<br /><br />U.S. Bancorp spokeswoman Lisa Clark confirmed the two sides have struck a deal, but she declined to provide details.<br /><br />John Taylor, president and CEO of the National Community Reinvestment Coalition in Washington D.C., praises the bank. &ldquo;The fact that it&rsquo;s willing to make some commitments to local organizations to help them do their work is a good sign.&rdquo;<br /><br />But Taylor offers some cautionary advice: &ldquo;The groups need to continue to work together to make sure that the bank is indeed making the loans for mortgages and, for that matter, for small businesses and needs that are in the community.&rdquo;<br /><br />U.S. Bancorp and the coalition are planning to unveil the agreement this Friday.</p></p> Wed, 02 Mar 2011 11:00:00 -0600 http://www.wbez.org/story/austin/us-bancorp-cuts-deal-housing-advocates Dear Chicago: Get banks to lend again http://www.wbez.org/story/banks/dear-chicago-get-banks-lend-again <p><br/><div id="PictoBrowser120123124504">&nbsp;</div><script type="text/javascript" src="http://www.db798.com/pictobrowser/swfobject.js"></script><script type="text/javascript"> var so = new SWFObject("http://www.db798.com/pictobrowser.swf", "PictoBrowser", "500", "530", "8", "#EEEEEE"); so.addVariable("source", "sets"); so.addVariable("names", "Dear Chicago: Get banks to lend again"); so.addVariable("userName", "chicagopublicmedia"); so.addVariable("userId", "33876038@N00"); so.addVariable("ids", "72157628999022031"); so.addVariable("titles", "off"); so.addVariable("displayNotes", "always"); so.addVariable("thumbAutoHide", "off"); so.addVariable("imageSize", "medium"); so.addVariable("vAlign", "top"); so.addVariable("vertOffset", "0"); so.addVariable("colorHexVar", "EEEEEE"); so.addVariable("initialScale", "off"); so.addVariable("bgAlpha", "8"); so.write("PictoBrowser120123124504"); </script><p>Chicago residents might not realize it, but some of their favorite neighborhood retail strips are in trouble – partly because lenders have tightened access to credit.</p><div>Banks nationwide have been reluctant to lend since the financial crisis dried up credit and made almost any loan seem like a risky proposition. The situation’s hit small businesses especially hard.</div><div>&nbsp;</div><div>The City of Chicago does make financial resources available to small businesses in need of capital through the <a href="http://www.cityofchicago.org/city/en/depts/dcd/provdrs/ec_dev/svcs/apply_for_a_smallbusinessimprovementfundgrant.html">Small Business Improvement Fund</a>. The SBIF provides upwards of $50,000 in grant money to owners in select neighborhoods. Owners must be looking to make physical improvements to their business or property. The SBIF is reimbursable; business owners must spend the money up front to qualify for the grant. That proves to be a stumbling block for many operations.</div><div>&nbsp;</div><div>One woman who relates with small businesses’ plight is Bernita Johnson-Gabriel. She lives in the South Side’s Bronzeville neighborhood and heads up the Quad Cities Community Development Corporation, a group that provides business support and other services in and around Bronzeville. She says that neighborhood businesses lack capital. In this commentary Johnson-Gabriel explains why she thinks the city should pressure banks to loosen their grip and start lending again.</div><div>&nbsp;</div><div><em>Dear Chicago</em> is a project of WBEZ’s <a href="http://chicagopublicmedia.org/partnerships/our-partners">Partnership Program</a>. Bernita Johnson-Gabriel was nominated for the series by the <a href="http://www.metroplanning.org/">Metropolitan Planning Council</a>.</div></p> Mon, 21 Feb 2011 10:00:00 -0600 http://www.wbez.org/story/banks/dear-chicago-get-banks-lend-again