Short Takes: F&M Merges 3 Va. Units In New Trust Company

F&M National Corp. last week consolidated the trust departments of three bank subsidiaries in Virginia into a new trust company.

The trust departments of the $2.5 billion banking company's lead bank, F&M Bank-Winchester, as well as of F&M Bank-Northern Virginia, Fairfax, and F&M Bank-Warrenton, now have centralized operations for $450 million of assets under management in 1,200 accounts.

F&M Trust Co., Winchester, which provides custody, employee benefits, estate, and trust administration will have one investment management process rather than three.

"It allows us to pool our expertise and make that available to all of our banks. Smaller banks may not be able to hire the expertise," said F. Dixon Whitworth Jr., president of the trust company.

Mr. Whitworth, who is also executive vice president of the parent company, said F&M plans to expand its trust business through the new state- chartered company to subsidiary banks in Charlottesville, Harrisonburg, and Richmond, Va.

When expanding into those markets, F&M Trust will promote its local status as a competitive edge over larger banking companies whose trust administration may be done in long-distance phone calls.

"So many of the megabanks that have acquired in our state are contracting trust services," Mr. Whitworth said.