his tenure as vice chairman of U.S. Bancorp's corporate banking
business in St. Louis from 2001, Hasten returned to his hometown
of Chicago in 2007 to become president and chief executive officer
of ShoreBank, a $2 billion company with locations in nine U.S.
cities and around the world. Though the mortgage industry at
large has nearly collapsed under the weight of easy credit and
unscrupulous lenders, Hasten says it's no surprise that ShoreBank's
mortgage portfolio is "performing very nicely."
Hasten manages the 'triple bottom line'.
in 1973 to bring financial services to underserved urban communities,
the bank — whose tagline is "Let's change the world"
— launched a program in September to help locals refinance
high-cost, subprime adjustable rate mortgage loans. According
to Hasten, the program has already saved more than 100 borrowers
from losing their homes. "By the end of this year," he says,
"I want to save another thousand."
MBA in a family of lawyers, Hasten worked in a bank after
graduating from Fairfield University in Connecticut. When
he was applying to business school, he decided to study finance
in hopes of moving up through the ranks in banking. He says
he chose the Kellogg Part-Time
MBA Program because he knew he would learn a lot more
than number crunching: "[At Kellogg], you aren't just majoring
in finance. You're majoring in management."
savings: ShoreBank promotes green design and sustainable
development opportunities. Its Home Energy Conservation Loan program encourages energy-saving
home improvements, such as adding insulation to this Chicago
bungalow, ENERGY STAR appliances and more. These enable
homeowners to wrap the purchase price of the home and
its improvements into one mortgage payment that will reduce
energy costs and consumption by 25 to 50 percent while
adding value and comfort.
his Jesuit education instilled in him a strong sense of community
from a young age, and he rejects the idea that community involvement
is strictly a feel-good exercise that eats up company resources.
"You can pursue social goods without sacrificing your returns,"
than that, Hasten says, aspects of ShoreBank's social mission
that appear to have little to do with banking — including
the bank's environmental sustainability initiatives —
all contribute positively to the "triple bottom line" that
aims to maximize shareholder return, social return and environmental
return. "This wasn't just a nice liberal point of view that
was added to the mission because it was virtuous," he says.
In addition to financing the renovation and clean-up of neglected
buildings, homes, and manufacturing sites, the bank also offers
free energy evaluations to its home-rehab loan customers.
"If they see us advising them in ways that other lenders don't,
i.e. around making their home energy-efficient, they see us
as more committed."
even he didn't fully grasp the scope of ShoreBank's triple
bottom line until after he had been invited to join the company.
"I thought ShoreBank was a community bank with a very nice
social mission on the side," he recalls. He was subsequently
impressed and delighted to find that "[that] was actually
what the place was all about. The mission was the competitive
of us in my generation were really trained to think of business
in terms of social responsibility," Hasten says, noting that
a younger generation of MBAs is driving social responsibility
to new industries all the time. "I think there's a lot more
interest in the social impact of business."
remembers when the formula for profitable banking was purely
mathematical. "As you read more and you grow older, you realize
it's not that simple," he says. "The fact that ShoreBank is
pursuing its mission is actually driving its profits."