Independent Banker - October 2018 - 25

ment services. " We are not a hard sell, " Lane says. " We
emphasize an educational approach, including newsletters
and seminar events. In fact, we are currently working on a
retirement income seminar for our Primetime Club members.
The focus will be on how they can generate more
retirement income than what they might be getting on a
deposit product. "
Many of the bank's customers tend to be fiscally conservative,
so the department makes it a priority to introduce
them to value-added products that go beyond basic bank
deposit products. The goal is to make sure customers
understand everything the bank and its broker, Sorrento
Pacific, offers, so they can select products and services to
help them meet their financial goals.
" We truly do try to take a holistic approach, " says Lane.
" We want to determine what will work for each individual
customer. In addition, Sorrento Pacific offers a number of
different products that assist with this, such as financial
planning software. "
Since January 2018, Community Bank has ramped up
its efforts to grow its wealth management program.
" Overall, we want to be a resource for our customers, "
Lane says. " We want to be a one-stop shop financially as
much as we can. "
Frandsen Bank & Trust
New Ulm, Minn.
Frandsen Bank & Trust originated its wealth management
and trust department nearly half a century ago, in 1969.
The department was formed from trust powers that the
banking division of the Minnesota Department of Commerce
granted. The department's focus is threefold: estate
planning and trusts, pure investment management (in
which clients hire the division to be portfolio managers for
them) and retirement planning.
" We help some clients in just one area, and others in two
or all three, depending on where they are in life and what
their needs are, " says Steve Vranich, senior vice president
and trust officer of the $1.4 billion-asset bank's wealth
management division.
" Under trust powers, we don't need all of the usual
investment broker licenses. However, we do need to pass a
number of trust exams through the FDIC, " he adds.
The wealth management division adheres to the asset
allocation theory and has built five asset allocation models
to ensure diversification. These models are: income-oriented
(heavy on bonds); conservative growth; moderate
growth; growth; and aggressive growth (light on bonds
and heavy on stocks).
With smaller clients (less than $1 million), the departPhoto:
Rick Apitz
ment typically builds mutual fund portfolios for them
containing various types of bond and stock funds. " Some
of these clients are people who ran businesses and then
sold those businesses but don't know much about investing, "
says Vranich. " Others are people who were already
invested, worked with other advisors, and either didn't
like them or wanted someone to pull everything together
for them. "
For high-net-worth clients, the department will put
them into individual stock and bond portfolios, since
they have a need for tax-free income. " We buy individual
" We are not a hard
sell. We emphasize an
educational approach,
including newsletters and
seminar events. "
-Brennan Lane, Community Bank
Steve Vranich of Frandsen Bank & Trust's wealth management
division adheres to the asset allocation theory.
independentbanker.org Q 25
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Independent Banker - October 2018

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