The trio went through their own evaluation process and decided to reconnect with a community bank that wanted to be able to compete with the larger banks by providing financial planning services. They settled on Firstrust Bank in 2006.
"Firstrust Bank fit with our goal of community involvement and building a sustainable business while helping clients achieve their long-term goals," Fleisher says.
FFR now has 50 employees, including 20 bankers who are also licensed as financial advisors, and has $680 million in assets under management, which is not part of Firstrust Bank's $2.4 billion in assets. It has a downtown headquarters in Philadelphia, as well as offices in 20 bank branches. It has grown by 30% in the past two years. The firm provides the same types of services for the bank's customers that it provides for its own clients.
FFR specializes in high-net-worth owners of closely held businesses, as well as professionals. It is beginning to expand into the not-for-profit area for employee benefits and retirement plans. It works on both a fee and commission basis.
In addition, the partners also are focusing on women as investors and families with special needs, partially through educational workshops.
Last year, FFR decided to affiliate with MetLife as its broker-dealer. Fleisher says MetLife is a leader
with female investors and families with special needs.
MetLife, with the guidance and experience of working with FFR, will be able to use the business model established between FFR and Firstrust Bank to transfer that same working relationship to other MetLife-affiliated firms in other areas of the country, Fleisher says. He adds that similar working relationships could then be established between financial firms and community banks in their geographic footprint.
-Karen DeMasters
Finra Reports $84 Million Loss
What a difference a year makes.
Finra reported a $84 million loss in 2011 that officials attributed to reduced regulatory fee revenues and transaction volumes from which Finra collects fees, as well as a more conservative investment policy that shrunk its portfolio. That's a big comedown from the prior year when the agency earned $54.6 million.