Business Line Results
Commercial Banking continued its impressive growth again in 2018. Average annual outstanding loan balances increased by $211 million to just over $3.7 billion on a mix of both Commercial Real Estate (CRE) and Commercial and Industrial (C&I) loan opportunities. Net new loan commitments to Commercial Banking customers totaled nearly 1 billion for the year.
Treasury Services earned $8.64 million in gross fees — a 12.4 percent increase over 2017 — and year-to-date average Treasury deposits grew to $1.96 billion. Treasury growth was supported by the division’s Purchasing Card product, which crossed the $1 million revenue mark in 2018.
We continued to find innovative ways to meet customer needs as well. One example was the creation of a new Equipment Finance division, which launched in early 2018. This new division provides customers with several additional financing options to grow their businesses. We also continued growing our specialized lending efforts, including Commercial Real Estate, Dental Practice and ESOP Finance lending. Our Business Banking team was the No. 1 SBA lender to women-owned businesses in Iowa in 2018.
We achieved strong results and introduced innovative solutions, all while preparing for future growth. This includes scaling our operations and automating manual processes. Our goal is to deliver sophisticated solutions, supported by the local expertise and personalized service our customers have come to expect.
Market expansion was a key component of Wealth Management’s growth strategy in 2018. Specifically, we focused on building Private Client Services expertise in Phoenix, where there is a concentration of high-net-worth potential customers, and expanding the delivery of our trust services from BTC Trust Company of South Dakota.
Following a nearly 18-month process improvement journey, Bankers Trust agreed at the end of 2018 to convert its back-end technology to the SEI Wealth Platform by the end of 2019. This new technology platform will grow as we grow, while enhancing the customer experience and mitigating risks associated with manual processing.
In all markets, Wealth Management is collaborating in new ways with other areas of Bankers Trust, with a focus on growing our pipeline and deposits. In particular, our Private Client Services, Retirement Plan Services and Institutional Services teams are working more closely than ever with the Private Banking and Commercial Banking areas to ensure current and potential customers have access to the products and services they need.
Bankers Trust broke ground on a new, larger location in Ankeny and completely renovated our Windsor Heights branch. Both of these exciting developments support Consumer Banking’s commitment to growth, outstanding service and the bank’s Universal Banking model, which we introduced in 2016.
Operating under the bank’s business line reporting structure, Consumer Banking is building a culture of consistent products and services and a focus on relationship building in Central Iowa, Eastern Iowa and Phoenix.
Consumer Banking is also focused on streamlining processes and making technology enhancements that create a better customer experience. For example, we introduced a new, more automated consumer lending approval process, which has yielded an increase in loan volume. We also introduced card controls as a new security feature on Bankers Trust debit cards.
Through these efforts, along with focused leadership, Consumer Banking continued to grow. By year-end 2018, customer accounts reached 64,000+, the number of customers rose to nearly 39,000 and the year-to-date average consumer deposits totaled $1.1 billion. Private Banking deposits totaled $437 million and Residential Real Estate reported mortgage originations of nearly $300 million.
BTC Capital Management
BTC Capital Management is an affiliate of Bankers Trust and an SEC Registered Investment Advisory firm. The company offers a full array of investment solutions including portfolio management, advisory services and asset allocation.
BTC Capital Management added two new strategic bank partners in 2018 and the geography it serves continued to expand. The firm’s focus on process improvement and efficiency, along with solid financial performance, has enabled important strategic investments in operational and technology resources.
With the right people, tools and solutions in place, BTC Capital Management is well positioned for continued growth.