Business Line Results
Money is often thought of as a commodity, but money without support and partnership is much less valuable. Each day, Bankers Trust’s Commercial Lending and Treasury Management teams demonstrated how essential they were by providing consultation and guidance to help the bank’s business customers navigate this challenging time. We served as an essential partner when our customers needed us most.
The Commercial Lending team’s main focus in 2020 was supporting our customers’ financial well-being. Joined by colleagues from across the bank, the Commercial Lending team quickly connected with customers to assess their immediate needs and accept PPP loan applications. As noted earlier in this report, the positive impact of these efforts was significant.
Commercial Lending exceeded its goal for fee income and had solid loan portfolio growth. Our annual average outstanding loan balance increased by $318 million to just over $4.0 billion. Net new loan commitments to Commercial Lending customers exceeded $885 million.
The Treasury Management team went the extra mile throughout 2020 to help keep businesses running smoothly. Examples ranged from helping create business continuity plans so our customers could process payments remotely, to daily assistance with account balances, transactions and fraud mitigation.
We quickly rolled out additional security solutions to many customers and helped them easily convert from paper-based to electronic payments. These efforts resulted in a 16% increase in clients using electronic payments, which supports retention.
By focusing on building and growing relationships, Treasury Management achieved 23% year-over-year deposit growth.
As front-line workers, the pandemic impacted our Retail teams the most, yet they rose to the challenge and thrived. These essential workers kept branches open for lobby appointments and drive-up service to continue supporting customers while it felt like the rest of the world worked from home. Safety and financial challenges of consumer and small business customers were top of mind as Bankers Trust offered loan and mortgage payment flexibility for up to a year to those who qualified. And the Consumer team contributed significantly to the bank’s Paycheck Protection Program efforts, with 50% of these loans processed by our branch team members and Private Bankers.
Mortgage loan and refinance volumes were up nearly 30% compared to the two-year average of 2018 and 2019 due to some of the lowest rates in U.S. history.
In all markets, our team handled a total of 1,551 home loans for customers. The team was thrilled to help many first-time home buyers build their credit and move into their dream homes, while also refinancing loans to help others significantly reduce monthly payments on existing mortgages.
Based on deposit volumes, Bankers Trust remains number one when it comes to market share in our home office location of Des Moines, while focusing on growth throughout Central and Eastern Iowa, as well as in Phoenix. More than 41,000 customers entrust the bank with their 67,500 accounts.
Despite the pandemic and challenges to having in-person meetings, Private Banking added nearly 200 new customers in 2020 as new professionals moved into our markets and others chose to leave larger financial institutions for the personalized service that is the hallmark of Bankers Trust’s reputation and success.
In 2020, we thanked division leader Paul Erickson for 42 years of extraordinary service. Upon his retirement, Emily Abbas, SVP – Chief Consumer Banking and Marketing Officer, began overseeing these teams.
In 2020, both customers and prospects turned to Bankers Trust for Wealth Management expertise during an uncertain and volatile year. Our aim is to provide stability and consistency to clients. Across all Wealth Management business lines, including Private Client Services, Retirement Plan Services, Institutional Services and BTC Trust Company of South Dakota, we worked to proactively engage with customers.
As a result, the Wealth Management division increased assets under administration (AUA) by $2.5 billion, or 20%. The division again achieved a 97% customer retention rate while also successfully expanding several existing customer relationships. The division also exceeded new business goals with new customers accounting for nearly $200 million in additional assets under management and more than $1.0 billion in new AUA. And at year-end, BTC Trust Company of South Dakota had $2.8 billion in AUA.
The Wealth Management team also expanded its financial planning services in 2020. The team now has three Certified Financial Planners and a Certified Wealth Strategist. This level of knowledge and planning expertise proved essential during such a difficult year and contributed to several clients consolidating their assets with Bankers Trust.
BTC Capital Management
BTC Capital Management is an affiliate of Bankers Trust and an SEC-Registered Investment Advisory firm. BTC Capital currently manages nearly $4.0 billion for institutions, banks and individuals throughout the country.
The company helps clients achieve strong investment performance through its full array of investment solutions, including portfolio management, advisory services and asset allocation. The firm offers these services in three main areas: direct institutional investment management, bank partner channel, and as investment manager for high-net-worth individuals and families served by Bankers Trust Wealth Management.
Throughout 2020, BTC Capital Management served as an essential resource and partner for clients. Providing remote client service, risk management and investment performance during a volatile year for both the markets and the economy was no easy feat.
However, BTC Capital Management is known for its strong, consistent investment philosophy and ability to tailor a solution to each client. These strengths, coupled with a focus on timely communication throughout 2020, enabled BTC Capital Management to achieve strong growth and retention, while also expanding its bank partner network.