Independent Banker - January 2022 - 25

Next: The future of the municipal bond market 
commodities, " Pacheco says.
" You have to do a good job in
delivering them, because if you
mess up, you could lose the entire
banking relationship. "
Comprehensive
community banking
Ledyard National Bank in Hanover,
N.H., offers integrated investment,
tax, banking and wealth management
services under the wealth
management umbrella.
" We're a boutique community
bank where clients expect us to be
able to help them with their entire
financial picture, so offering these
services lets us do that, " says Michael
Hakoun, executive vice president
and managing director of Ledyard
Financial Advisors, the $1.9 billionasset
community bank's wealth
management division.
The bank performs most of these
services in-house, though it works
with a tax advisory firm in delivering
some tax planning services. " We
have credentialed financial planners
... and investment professionals on
staff, which distinguishes us from
most RIAs [registered investment
advisors] or asset management
firms that are just looking at one
component of a client's finances, "
Hakoun says.
Offering these niche services allows
Ledyard National Bank to provide
a more comprehensive approach to
banking and financial management
for affluent clients.
" For example, we can help clients
determine what risk looks like for
them and what the impact of a
certain strategy might be on their
tax liability, " Hakoun says. " You
can only do this when you take a
comprehensive approach. "
According to Pacheco, one of
the biggest benefits of offering
these services to clients is that the
" We're a boutique community bank where
clients expect us to be able to help them
with their entire financial picture, so
offering these services lets us do that. "
-MICHAEL HAKOUN, LEDYARD NATIONAL BANK
community bank increases its share
of wallet. " And you're doing this in
a way that's highly personalized and
takes advantage of the relationships
you have with your business and
high-net-worth clients, " he adds.
These fee-based services also
provide community banks with a
steady, predictable stream of income.
" This can help offset the rise and
fall of spread income, which can
be unpredictable, " Pacheco says.
" Our trust and asset management
business didn't slow down during the
pandemic. In fact, it actually picked
up, as some people thought more
about their mortality and did more
trust and estate planning. "
Krupps says offering these services
gives United Community Bank
another touchpoint with clients.
" Of course, there are also crossselling
benefits, " he adds. " These
services add to our arsenal of
products and services. "
Hiring and retention challenges
To best deliver these services,
Hakoun says community banks need
skilled personnel who can deliver
the high level of customer service
expected by customers who rely on
these specialized services.
To that end, Krupps stresses
that community banks should
prioritize retaining these skilled
staff members. " In this business,
relationships are crucial, so you
have to try to avoid high employee
turnover, " he says. " Your employees
have to earn the trust of clients,
which takes time. "
Pacheco agrees. " You must
provide the support your employees
need to deliver the high-touch level
of service these clients expect, " he
says. " You've got to go all in; you
can't just dip your toes in the water. "
Importantly, community banks
should be patient when planning to
offer specialty trust and tax strategy
services to clients for the first time.
" It could take two to five years to
reach profitability if you're starting
from scratch, " Pacheco says, " so you
have to stick with it. "
Despite the high barrier to entry,
Krupps believes offering specialty
trust and tax strategy services is
essential in today's environment.
" It's a must, because community
banks can't survive in a world
of transactions, " he says. " You
need these services to have a full
and healthy relationship with
your clients. " 
Don Sadler is a writer in Georgia.
independentbanker.org Q 25
http://www.independentbanker.org
Independent Banker - January 2022

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