Santa Rosa’s Exchange Bank Expands by Purchasing a Trust & Wealth Management Business

Recently, Exchange Bank revealed that it had purchased a trust & wealth management business functioning in the South Bay right after the purchase by Santa Rosa based bank in October.

In the recent acquisition, cash of around $375,000 was given to purchase California Trust and Wealth Management business of Iowa-based American Trust and Savings Bank that has around eighty-five million in assets under administration. California Department of Business Oversight still needs to approve the acquisition.

If the agreement is sanctioned, assets managed by trust department of Exchange Bank will be around $1.185 billion. Last year, rights to manage around forty million in assets were bought by the bank of First Northern Bank’s trust department, located in Dixon, but the amount was not revealed. Trust departments of bank are charged with handling investments & assets frequently transferred from one generation to another.

American Trust and Saving Bank’s location will be in San Mateo. Cathleen Colgan, who is American Trust’s Senior Officer will become a part of Exchange Bank and it will be administered by her. Most of the trust department’s oversight will be managed by John Mackey, who is Exchange Bank Senior Vice President of Trust and Investment Management in Santa Rosa.

Chief Executive Officer and President of the bank, Gary Hartwick stated that the bank needs to be expanded gradually. He stated that the recent acquisition was a plan to expand reach of Exchange Bank into neighboring locations of the state.

Greg Jahn, who is Chief Investment Officer & Executive Vice President observed the aim was to cater to the families who have assets of trust starting from a million, which is a less amount as compared to several South Bay banks.

Any size trust can be managed and stating that several trust departments need at least assets of ten million. John Mackey stated that the strategy was planned to aim at Silicon Valley & South Bay. However, they are not targeting significantly high-net-worth families catered to by large banks.

John Mackey stated that almost every big trust firm in America has an office located in Silicon Valley, they want to cater to normal families with the help of the purchase. Hartwick stated that although several banks went in the new market by providing services related to lending, his confidence in trust department’s quality gave rise to the decision to guide by entering South Bay.

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