This company is tailor-made for small and midsized business owners. Taylor Capital Group is the holding company for Cole Taylor Bank, which specializes in commercial banking, real estate lending, and wealth management services aimed primarily at closely-held and family-run businesses in the construction, manufacturing, distribution, transportation, and professional services industries. Business loans, including working capital, owner-occupied real estate financing, and letters and lines of credit, account for approximately 90% of the bank's loan portfolio. With about 10 branches in the Chicago metropolitan area, the bank also offers traditional banking services to consumers.
Outside the Chicago area, Taylor Capital Group has opened lending offices in about 10 other states, including California, Texas, Washington, and Wisconsin.
The bank's revenue fell more than 15% in 2011 vs. 2010, on declines in both interest and non-interest income, down 10% and 32%, respectively. A drop in interest and fees on loans, and interest and dividends on securities depressed interest income. Despite falling revenue, the bank returned to profitability in 2011 for the first year since 2006.
Chicago was one of the hardest hit areas during the recession and, not coincidentally, Taylor Capital Group reported losses each year between 2007 and 2010 as real estate prices plummeted. The company, which increased its provisions for loan losses in 2010, is focusing on improving its asset quality. It has reduced its exposure to residential construction and land loans and ramped up its asset-based lending and residential mortgage operations.
Cole Taylor Bank sold its corporate trust business to Amalgamated Bank of Chicago in 2010, a move that allows it to focus on its core commercial banking business. The company supports organic growth by cross-selling financial products and services to middle-market businesses and their owners and executives.
Taylor Capital Group is sticking to its "fix and grow" strategy, in place since early 2008. The strategy focuses on remediating the asset quality issues caused by the downturn in the Chicago area real estate market in recent years, while at the same time growing the diversifying its earnings. The bank has worked to reposition itself as a commercial and industrial lender to closely-held businesses in the Chicago area, while reducing its exposure to risky residential real estate construction and land loans.
Members of the Taylor family, including brothers Bruce and Jeffrey Taylor (chairman and vice chairman of the company, respectively) control nearly 19% of Taylor Capital's voting power. The bank was founded in 1929 by forefathers of the Taylor family. – less