A Trusted Resource

A new ICBA alliance with Kanaly Trust provides an alternative for underperforming trust and wealth management programs

By Carol Patton

Maximizing return on investments has never been more important, for both companies and individuals. So here’s a question to consider: Is your community bank’s trust department or wealth management program delivering the same level of capital returns that your bank’s clients would demand for their own assets?

If not, ICBA has developed a new member service program worth considering. Under a new ICBA strategic alliance with Kanaly Trust, an independent, Houston-based trust and wealth management firm, community banks have a new option for repositioning underperforming trust and wealth management business lines.

“If you believe your established trust business within your community bank is underperforming, or that it no longer fits your bank’s strategic plan or that you have retiring management and simply want to look at options, this ICBA program would be a good place to start,” explains Gary Teagno, president and CEO of the ICBA Services Network.

Better together

Teagno says the joint ICBA-Kanaly Trust program’s focus is to assist community banks seeking better solutions for their clients as a larger independent provider focused singularly on the trust and wealth management business—one that wants to work with them as a trusted local partner.

The opportunity is ideal for community banks with trust and wealth management assets of $500 million and greater. Kanaly Trust currently manages and advises more than $2 billion of assets for its client families and related institutions.

According to Teagno, ICBA chose Kanaly Trust, which has provided robust asset management and financial and estate planning advisory solutions since 1976, as its program’s service provider for two important reasons. First, the company is backed by Lovell Minnick Partners, a private-equity firm that invests in financial services, and SEI, a global provider of outsourced processing and wealth management solutions for institutional and private clients. Second, the company is not a depository institution, so its services complement, but do not compete against, the core services community banks offer.

Assessing your needs

To help determine whether repositioning a trust and wealth management business makes sense for your community bank, Bill Rankin, CEO of Kanaly Trust, suggests considering the following questions:

– Is the trust and wealth management business an important part of your community bank’s strategic plan?

– Could the capital invested in owning and managing your bank’s trust and wealth management programs be better deployed toward core competencies or traditional banking services?

– Is your bank satisfied with the growth of its trust and wealth management business?

– Does your bank have a quality investment platform that its clients respect and seek out?

– Does your bank have the next generation of technology tools and leadership to ensure its competitiveness in the future?

“Any arrangement we would make with a community bank would be a long-term partnership, whereby we would continue to use the bank as our primary go-to solution for traditional banking services for our trust and investment clients,” Rankin says. “And hopefully the banks involved in this ICBA program would look to us as their long-term solution for trust and investment solutions for their clients.”

The key for community banks’ success under the new ICBA-Kanaly Trust program would always be developing and maintaining a strong local partnership that leverages the complementary strengths of each firm, Rankin adds.

Carol Patton is a writer in Las Vegas.