Sun National Bank in Vineland, N.J., has found a big difference between using investment sales representatives that work for a third-party broker-dealer and employing them directly. In January 2008, the $3.6 billion-asset bank brought in-house the reps at Sun Financial Services, its investment arm, and saw strong results by the end of the year. The Sun Bancorp Inc. holding company's investment product sales more than tripled, from $974,000 to $3.04 million.
Overall Sun, which had $250 million of investment assets under management at Dec. 31, accomplished the improvement without adding to its 10-person corps of investment reps. Moving the investment professionals under Sun's banner allowed the bank to better integrate the brokers into a branch-based system of goals and incentives. This system makes branches as a whole accountable for meeting investment revenue targets, says Edward Malandro, the executive vice president of consumer banking at Sun. "We share the accountability and the goals," he says.