Banking's Family Ties
April 11, 2013 8:00 AM
Investors pay attention to banks' dealing with relatives of executives and directors. Many of those details are highlighted in annual proxy statements. Here are some high-profile examples. (Image: Thinkstock)
Signature Client
Ivanka Trump is a director at Signature Bank (SBNY) in New York (though not for long ). Donald Trump, her father, has letters of credit with the bank totaling $212,301 for Trump International Golf Club. (Image: Bloomberg News)
Home Run Deal
Trustmark (TRMK) in Jackson, Miss., owns the naming rights to a baseball stadium in nearby Pearl. The family of William Yates 3rd, a Trustmark director, controls a real estate firm that owns the stadium and receives funds from the naming rights deal. (Image: Thinkstock)
Car Talk
TFS Financial (TFSL) in Cleveland paid Joseph Cech, the brother-in-law of its bank's president, $267,000 last year for business development work. Cech also received a company car. (Image: Thinkstock)
Fueled Up
Affiliates of F.N.B. Corp. (FNB) in Hermitage, Pa., bought nearly $200,000 in gas from Sheetz gas stations. Stan Sheetz, the convenience store chain's CEO, is a director at F.N.B.
Tax Season
Glacier Bancorp (GBCI) in Kalispell, Mont., paid $190,000 to accounting firm Jordahl & Sliter for tax preparation, among other things. Justin Sliter, the son of Glacier's chairman, Everit Sliter, is a partner at the accounting firm. (Image: Thinkstock)
Brotherly Love
Two brothers-in-law of Eagle Bancorp (EGBN) CEO Ron Paul work for the Bethesda, Md., company. Eagle paid Jeffrey M. Fink, a mortgage loan officer, $691,215 last year. Kenneth Van Valkenburgh, a vice president of insurance sales, earned $136,541 and an incentive bonus.
Justice for All
TrustCo Bank (TRST) in Glenville, N.Y., paid about $460,000 last year to Overton, Russell, Doerr and Donovan. Thomas McCormick, a partner at the law firm, is the brother of TrustCo CEO Robert McCormick. (Image: Thinkstock)
Rent Due
EverBank (EVER) in Jacksonville, Fla., paid $2.4 million in 2012 to rent office space from HGL Properties. Russell Newton 3rd, an EverBank director, owns 9.2% of HGL Properties. EverBank also paid about $550,000 to a law firm where EverBank CEO Robert Clements' brother is a partner.
