Ohio bank expands products with a hand from trade group.

Late last month, a small bank in rural Ohio got into the retail investment sales business with substantial help from a local bank association.

First-Knox National Bank of Mount Vernon, is hoping to make between $250,000 and $300,000 of fees a year from the sale of mutual funds, annuities, and insurance products through its 10-branch network, according to Cheri L..Butcher, head of the bank's new brokerage operation.

To get there, the $400 million-asset community bank has lined up help from an insurance subsidiary of the Ohio Bankers Association, and an investment marketing company, Essex Corp., New York, that the association began recommending to its members last fall.

"Our state organization is very strong, and we felt comfortable with their choices," said Ms. Butcher.

"We know they will not Connect us with any company that does not have sound financial backing," she added. First-Knox is starting off small. The bank is having two full-time sales representative travel among its 10 branches.

In addition to insurance licenses, the brokers hold Series 6 licensess from the National Association of Securities Dealers that allow them to sell mutual funds and annuities.

Ms. Butcher, who oversees their activities, also plans to make some sales.

To that end, she said she is renewing a Series 7 license from the NASD that will allow her to sell a broader range of investments.

The brokerage service has been dubbed the' LifeLink

Investment Service.

The brokers are paid by both Essex and First-Knox. Essex helps the bank with order execution, compliance reviews, and supplies marketing materials. OBA Insurance Agency Inc., a unit of the Ohio Bankers Association, supplies the life insurance brokers sell. The brokers are also selling mutual funds from Fidelity Investments and Massachusetts Financial Services Inc., and variable and fixed annuities from john Hancock and AllState Insurance.

While First-Knox relied heavily on the bank association referrals, the bank also did its own yearlong due-diligence review before choosing its insurance and investment sales partners.

First-Knox has been in the trust business for several years, and bank officials hope the new brokerage services will help bridge the gap between the bank's retail side and it trust services, Ms. Butcher said.

"It helps to round out our offerings," she said. To help inaugurate the investment services, First-Knox is holding open houses and sending out mailings to the town's residents.

Bank employees are being rewarded with $10 for referrals of bank customers with money to invest.

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