ShoreBank Direct

In the 1970s, banks still continued to “redline” against minority neighborhoods, even to credit-worthy residents. Inspired by their success running a minority business-lending program, ShoreBank founders, Mary Houghton, Ron Grzywinski, James Fletcher and Milton Davis, with backgrounds in banking, social service and community activism, decided to try an even larger venture. The vision? Buy a bank in a disinvested neighborhood, and create complementary affiliates, focusing all of the resources on one neighborhood.

Their big opportunity turned out to be South Shore National Bank, a small bank in one of Chicago’s racially changing neighborhoods. After the bank lost more than half its deposits, its owners planned to abandon the neighborhood and move downtown. But neighborhood residents fought back. In an unprecedented response, federal regulators banned the move. Still determined to move, the owners sold the bank to ShoreBank. The year was 1973.

In order to attract capital the neighborhood needed, the bank created Development Deposits for people who wanted to invest their savings for community development while earning a competitive rate. This helps ShoreBank reverse the normal flow of capital, channeling resources into underserved neighborhoods to power their revitalization.

Today, ShoreBank is committed to building vibrant communities by providing financial services and information to create economic equity and a healthy environment. Headquartered in Chicago, ShoreBank Corporation has subsidiary banks in Chicago, Detroit, Cleveland, Portland, Oregon, and Ilwaco, Washington. ShoreBank Corporation also has nonprofit affiliates in Chicago, Cleveland, Detroit, Ilwaco, and Michigan’s Upper Peninsula; and consulting services around the world.