Chicago Deposits $10 Million Into Albany Bank & Trust
The Chicago treasurer’s office dropped $10 million into Albany Bank & Trust in an effort to spur more affordable housing in the city’s North and Northwest Side communities.
Providing funds to a community bank like Albank — the only such bank approved to handle city deposits — is the best way to ensure taxpayer dollars go towards areas that need it most, according to City Treasurer Melissa Conyears-Ervin, the Chicago Tribune reported.
“We know community banks are more inclined to invest directly in our residents and our small business owners,” she told the outlet.
The deposit is especially timely given today’s tight lending climate. Rising interest rates and high construction costs are making it difficult for a number of developers to attain adequate financing for new projects.
With $700 million in assets, most of Albank’s loans go towards affordable, multifamily developments throughout 25 neighborhoods in the North and Northwest Side.
“That’s our bread and butter,” senior vice president Adam Steinback told the outlet. “Our lending is very heavily focused on community and economic development serving low- to moderate-income residents. That’s what we do every day, and this is a wonderful opportunity to do even more of that.”
In Albany Park, nearly 16 percent of residents get by on less than $25,000 per year, according to a 2022 report from the Chicago Metropolitan Agency for Planning.
Conyears-Ervin wants more community banks in Chicago to handle deposits from the city, particularly those on the South and West sides, both of which are areas that have historically been disinvested. Many community banks don’t apply for city approval, but she hopes that Albank can start a trend.
—Quinn Donoghue
