Frequently Asked Questions
About ShoreBank Corporation
Q: How is ShoreBank Corporation different from other bank
holding companies?
A: ShoreBank is the nation’s first and leading community development and environmental banking corporation, committed to building vibrant communities and a healthy environment – our “triple bottom line.” There are now other “community development financial institutions,” but none are as large as ShoreBank, nor have they adopted the conservation mission. In contrast, most bank holding companies do not have a community development or conservation mission.
Q: What is “triple bottom line?”
A: Most businesses have a single bottom line – maximizing shareholder return. “Triple bottom line” companies typically manage to achieve three returns: profitability, social return and an environmental return. ShoreBank describes its triple bottom line as profitability, community development impact and conservation.
To measure our triple bottom line success, we evaluate the following:
- Traditional financial performance.
- The dollars we invest in priority communities, which are specific communities whose median income and housing values are below the regional or state's medians and the dollars we invest in minority-owned businesses, faith-based and other nonprofit organizations - which we call "community development investment"
- The dollars we loan to finance activities that contribute to a healthier environment, such as building renovations that reduce energy and resource consumption or sustainable business practices, which we call “conservation loans.”
By translating ShoreBank’s mission and strategies into specific objectives and measures, we make our mission very practical and tangible. ShoreBank’s annual reports include data about our annual performance in development investment and conservation loans.
Q: What is community development banking?
A: Community development banking uses traditional banking services to revitalize communities by spurring the redevelopment of real estate, financing business growth, helping residents build their own wealth, and encouraging new services. Most community development banks operate in communities that have traditionally been disenfranchised, often because of race or income levels.
To achieve its community development purposes, ShoreBank lends extensively in its priority communities, and also focuses on lending to minority-owned businesses, nonprofits and faith-based organizations. To fund the loans, ShoreBank offers market rate, federally insured Development Depositssm to customers worldwide.
Q: What is conservation or environmental banking?
A: Conservation or environmental banking uses traditional bank services to promote a healthier environment. For example, ShoreBank makes conservation loans to customers who are making changes to improve their use of key resources like energy, water, materials and land. These loans help them reduce operating costs by using resources more efficiently, lessen solid waste and improve air and water quality.
To fund the conservation lending, ShoreBank offers EcoDeposits® to customers from around the world. EcoDeposits® are market rate, federally insured deposits.
Q: Why does ShoreBank have so many different companies?
A: One of ShoreBank’s hallmarks is its commitment to being local – so in each community in which we work, we established local organizations whose staff develop strong relationships in the community and extensive knowledge of the local market.
In addition, strengthening communities and working towards a healthier environment requires more tools than just what regulated banks can offer. Therefore, ShoreBank has created affiliated nonprofit organizations that can provide a variety of services such as business development services, wealth building services, entrepreneurial training and workforce development services. In addition, the nonprofits and our small business investment corporation provide higher risk financing than banks can offer.
And because the need for community development and conservation services far exceeds ShoreBank’s capacity, we established the consulting company. ShoreBank International works with other financial institutions and community development organizations, sharing ShoreBank’s learnings with others that have similar goals. ShoreBank International also serves as a research center to test new ideas for creating wealth and economic equity for people outside the traditional banking system.
Q: Where is ShoreBank located?
A: ShoreBank is headquartered in Chicago, Illinois. ShoreBank has banks and affiliated nonprofits in Chicago; Cleveland; Detroit; Ilwaco, Washington; and Portland, Oregon. Northern Initiatives, based in Marquette, Michigan provides business development services in Michigan’s Upper Peninsula. ShoreBank International has headquarters in Chicago, with offices in Washington, D.C., and London. ShoreBank Capital has offices in Marquette and Detroit, Michigan.
Q: What products and services does ShoreBank offer?
A: Each ShoreBank company offers an array of information and financial products and services, uniquely developed to meet the needs of the communities in which they operate. More information is available in the Companies section of this website, or you can visit the companies’ individual websites.
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