Magazine article American Banker

Bank South Hires Partner to Boost Corporate Trust

Magazine article American Banker

Bank South Hires Partner to Boost Corporate Trust

Article excerpt

Bank South, which has failed to achieve steady growth of its corporate trust business over the past 15 years, is looking to an independent company for help.

Reliance Trust Co., also based in Atlanta, has a one-year contract, with the possibility of five five-year extensions, to handle the bulk of Bank South's $350 million corporate trust assets under management.

Because of initiatives in areas like mutual funds, Bank South officials were considering whether to try to expand the business or shelve it when Reliance approached them, said J. Blake Young, executive vice president in charge of investment management and trust services.

"Because the timing was so good when they came along, it put us in a position to feel good about going forward," Mr. Young said.

Revenue-Sharing Feature

Under terms of the deal, Reliance will assume the costs of doing business while sharing revenues with Bank South, Mr. Young said. He declined to elaborate further.

The main draw for the $4.6 billion-asset bank in choosing Reliance was its four principals, who were largely responsible for expanding the former C&S/Sovran Trust Co. corporate trust business to the largest in Georgia, Mr. Young said.

The team at C&S/Sovran blazed new trails in financing techniques, including the first collateralized mortgage obligation and one of the first leveraged lease financings for aircraft, according to Reliance.

The experience that Kenneth J. Phelps, James Maxwell, Anthony Guthrie, and Dan Davis have with the Georgia marketplace is invaluable in a business which is highly competitive and determined by narrow margins on bids, Mr. …

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