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VOL. 6 | NO. 23 | Saturday, June 1, 2013

‘One-Stop Shop’

Addition of investment services increases community banks’ offerings

By Andy Meek

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A few Memphis-area community banks are starting to add investment services to their mix of offerings.

Cary Allen is an investment adviser for LPL Financial, and Lisa Foley is with EVP retail banking for Magna Bank. Magna Bank is now offering investment services, which is managed under the retail banking group. 

(Daily News/Lance Murphey)

They include Magna Bank, which now is working with Cary Allen, a representative of independent investment securities firm LPL Financial Services.

Allen, who has more than 30 years' experience in the industry, will be based in Magna's Quail Hollow branch at 6525 Quail Hollow Road, but he'll be available to meet with customers at any of Magna's other branches if they need. He comes to the bank from Paragon National Bank, where he was the original member of Paragon's wealth management division.

“They've not had an investment adviser, and it's a good opportunity to serve the needs of their customers, because all bank depositors are looking for a higher yield, that's for sure, in this environment,” Allen said.

Lisa Foley, executive vice president and retail banking division manager with Magna, said the bank's customers have been asking for investment services for a while now.

“We have wanted and been waiting a long time to try to partner with the right broker-dealer to be able to offer alternative investments to our customers, and we have finally found the right partner, which is LPL Financial but most importantly Cary Allen, so we can better fulfill our customers' financial needs,” Foley said. “Our customers have been asking for these services, and today we can say we have them. This allows us to protect our customer base and be more of a one-stop shop for them. If you're going to protect your customer base, you've got to offer a gamut of financial services, and this is one we were missing.”

Another local community bank going a similar route, meanwhile, is BankTennessee, which recently began a relationship with Raymond James Financial Services Inc. so the bank can offer investment and wealth management services to customers.

Raymond James financial adviser David Lofton is working with the bank and will work out of BankTennessee's Collierville headquarters. He won't technically be an employee of the bank. Rather, it's a partnership designed to give BankTennessee customers access to Raymond James' reservoir of talent and expertise in a variety of fields.

BankTennessee Chairman Joel Porter said the partnership will allow the bank to provide clients access to more financial resources from what he described as one of the largest and most respected investment firms in the U.S.

“I'm going to work out of their main office, but I also grow my business from getting out and seeing people face to face and meeting them,” Lofton said. “The services I'm going to provide include giving financial planning advice – basically the kinds of services the bank doesn't provide now. It's anything having to do with mutual funds and investments. I'm a certified financial planner, so I'm going to work by not just selling a product but sitting down with people, figuring out where they are and helping them come up with a plan.”

Lofton has more than 15 years' experience in the financial services industry. He joined Raymond James in 2004 after seven years with Morgan Keegan.

Raymond James, which in 2012 completed its acquisition of longtime Memphis investment bank Morgan Keegan & Co. Inc., is well known for its award-winning equity research, integrated adviser technology, strong asset management and investment banking programs. The company also serves more than 1.4 million clients.

Raymond James' Financial Institutions Division was established in 1987 to provide banks and credit unions with brokerage services as an alternative to traditional third-party investment providers. The division currently provides brokerage and advisory services to more than 200 financial institutions with total investment assets under administration of more than $29 billion in more than 300,000 client accounts.

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