SBAC Member, Chuck Gitles from American Chartered Bank, would like to share their great news for small business.
American Chartered Bank landed a $50-million investment from four private-equity firms, the first such deal in the Chicago market since the financial crisis and a hopeful sign for a still-struggling local banking industry.
CEO Mr. Miller sees growth opportunities as small and mid-sized businesses in the Chicago area look for alternatives to larger banks. American Chartered’s typical customer is a manufacturer, wholesaler or distributor with $5 million to $20 million in revenue.
â€œThe number of small and middle-market businesses in this town is enormous,â€ he says.
American Chartered’s growth peaked at $3 billion in assets a few years ago but shrunk as it shed real estate loans. To offset losses from those writedowns, its 420 existing shareholdersâ€”many of them employeesâ€”added $27 million in capital over the past two years. The bank has sworn off commercial real estate lending; business loans now account for 60% of its $1.6-billion loan portfolio.
â€œI’d like to get back to $3 (billion) pretty quickly,â€ Mr. Miller says. â€œI’d like to be at $5 (billion) in the not-too-distant future.â€
Â© 2011 by Crain Communications Inc.
This new funding opens up the opportunity for more lending from American Chartered Bank to small and mid-market Businesses.
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