The bank's profitability comes from its personal way of dealing with borrowers, strict standards for business lending and innovative corporate structure. Knowing Your Clients Shortly after taking over a bank that wanted to abandon the South Shore, SSB's new managers began their personal approach to lending by meeting many community residents to learn about their needs and aspirations. When meeting with prospective borrowers, bank staffers carefully assess each applicant's character, skills and business ideas. Borrowers, the majority of whom invest in apartment complexes, are required by the bank to renovate their buildings. Although SSB originally required them to live on the premises, it still prefers to lend to landlords who, by living on their own rental property, have a strong interest in the viability of the building and the safety of its occupants.
Bank managers stay in close touch with borrowers, monitoring the use of loan funds.
Attracting Funds To obtain resources for these development programs, South Shore Bank has reversed the trend of savings flowing from economically-depressed areas to prosperous areas that promise higher returns. South Shore Bank's managers also have established a parent company, Shorebank Corporation, and affiliates that attract development funding not available to a commercial bank. City Lands Corporation is a for-profit real estate development company that buys, sells, renovates and manages residential housing. The Neighborhood Fund arranges minority financing with support from the US Small Business Administration. TNI also supports the commercial space made available to budding enterprises, while one of its affiliates rebuilds rental and cooperative housing for low-income tenants.