Keystone Financial Corp., Harrisburg, Pa., said it plans to start selling personal auto and business liability insurance within three months.
The $6.8 billion-asset bank will then add lines such as homeowners and life insurance, said J. Daniel Keppel, who joined Keystone in November as vice president in charge of insurance services.
Within two or three years the insurance business should generate as much as $3 million of new annual premiums, Mr. Keppel said.
Distribution is likely to be done through platform employees as well as a dedicated staff, Mr. Keppel said, and phone sales are possible as well.
"We think insurance is one more product that allows us to offer the broad palette to our customers," said Robert Leech, president and chief executive of the bank's asset management division. "Obviously, we also hope to make a little bit of money on it."
Before joining Keystone, Mr. Keppel was director of insurance at New York's Dime Savings Bank.
Compiled by Stephen Garmhausen