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FWTB Northern Colorado Community Advisory Board Members Paula Edwards and Larry Edwards, President Kristi Benningsdorf, and Chairman James Sprout.

First Western Trust Bank (FWTB), founded in 2002 by CEO Scott Wylie, combines integrated wealth management solutions on a private banking platform with a more personally connected, client-centered approach that is proving very successful in Colorado, Arizona, and California.

Their vision? To be the best private bank in the western United States.

Wylie, who founded and later sold the Trust Bank of Colorado, established FWTB in Denver with help from another Colorado son, Warren Olsen. Olsen serves as Chief Investment Officer in charge of investment strategy. He was formerly the president of IBJ Whitehall Asset Management Group where he increased managed assets from $3 billion to $10 billion, and before that he founded and was president of Morgan Stanley Asset Management’s global fund business in New York.

Realizing that potential clients had few private banking options west of the Mississippi, FWTB founders set the auspicious goal of dominating the western market. Wylie describes the typical FWTB client:

“The big companies in the eastern half of the country are used to dealing with old established wealth, and offer a paternalistic service to their clients. But Colorado wealth (especially in Northern Colorado) is first generation, and is created from intellectual capital that comes out of places like UNC and CSU. These entrepreneurs and professionals are looking for a financial partnership, not a pat on the head… someone who offers smart savvy advice that will help them be as successful financially as they are in their fields.”

When Wylie and Olsen were investigating expansion from Denver into Northern Colorado, they talked to many industry professionals about the players in this market.

“After the tenth person told us to talk to Jim Sprout, we knew we had our guy,” says Wylie. “We weren’t even really thinking about this market,” he says, “but Jim is such a great leader in Northern Colorado. It was a significant opportunity.”

Based on those recommendations, a partnership was born that will pay dividends for many years. James Sprout & Associates and Poudre River Valley Trust Company, merged with FWTB in 2004.

“I liked First Western’s philosophy that values a comprehensive and long-term relationship in working with clients. We emphasize a team approach in collaborating with our clients and their other advisors to find the best solutions. Our senior management team consists of Kristi Benningsdorf, Tom Behr, Cindy Bragdon, Glory Burns, Denai Thornton, and Rich Ball,” says Sprout, now Chairman of FWTB Northern Colorado in Fort Collins. “Overall, it was a good opportunity for my clients as well as my associates.”

He continues: “The business model includes traditional banking services, a sophisticated and customized investment management platform, fiduciary and trust services and insurance consulting all integrated through a personal wealth management and advisory relationship.”

FWTB Northern Colorado Chairman James Sprout, center, works with clients Brown Abrams, left, and wife Melissa Abrams

Brown Abrams, owner of FiberLok, Inc. of Fort Collins, came to Sprout through the recommendation of a trusted personal and business relationship of twenty years. “I am too busy running my business to try and understand the type of work Jim does,” says Abrams, “His type of business is about trust. He is dealing with the concentrated results of my business, which I have worked hard at for over thirty years. That is why you need someone you trust.” FiberLok is a specialty printing company and manufacturer of Lextra, a high performance heat lock transfer used most often on textiles. FiberLok is on the high development track with over 100 U.S. patents, fifteen of which they have received in the past year.

First Western moved from the Old Town Fort Collins area to its new location at 3003 East Harmony Road in September 2008.

Meriting Recognition

FWTB’s impressive growth has made national and regional headlines. Business magazine, Inc. 500 tracks the fastest growing private companies in the U.S. In 2008, they ranked FWTB as the fastest growing bank, and report its growth since inception at an eye-popping 791.2 percent.

According to Wylie, last year’s loan growth was up 85 percent, exceeded only by deposit growth, which rose by 87 percent. The bank currently has $450 million in assets and manages $2.2 billion in financial assets. Approximately $250 million, including fiduciary assets, are managed in Northern Colorado.

Kristi Benningsdorf, President of FWTB Northern Colorado is a Colorado native and 25-year veteran of the banking industry. She explains the growth strategy for the institution: “We are looking for steady asset and revenue growth. We are also committed to growing our current locations from 8 to 28 locations by 2012. First Western recently opened new locations: one in Scottsdale, Arizona, and two in the Los Angeles, California area.”

Also, FWTB recently added new services in 401K consulting, cash management for nonprofits, foundations and businesses, and a full-scale mortgage department.

CIO Olsen explains how FWTB has remained very solid while other banks have found themselves on shaky ground in recent months. “Our growth has been a very considered effort. We’ve kept our credit standards very conservative.”

Wylie reiterates the sentiment on the company website: “We have a culture built around risk management, and we focus on long term results both for our clients and for our own operations. When the markets are booming, we may seem a little boring and cautious, but in times like these, we stand out as a safe harbor.”

Competitive Edge

“We focus on comprehensive wealth planning,” explains Benningsdorf. “Our portfolio managers are experienced and savvy investment professionals, and our investment committee is comprised of industry experts with years of experience.”

She continues: “We are client focused; we are a trusted advisor; we are locally based and engrained in the community; we have local decision making and loan approvals; we have a unique focus on providing ongoing education/life planning; we are relationship based; we provide peace of mind, and most of all; we are very good at what we do.”

Generally, new clients to FWTB are referred by current clients or other professional advisors. The bank also has an active Community Advisory Board that includes: Larry Edwards, Paula Edwards, Jim McWilliams, Cliff Buchholz, Rodney Rice, Kim McDaniels, Rachel LaValley, Alistar MacDonald, and Eric Peterson.

Larry Edwards, who is also owner of The Light Center in Fort Collins, has served as an advisory board member for five years. He says, “Our function is to be a good sounding board for the bank’s leadership. We give them more fingers in the community and help expand their reach.”

Paula Edwards, also serves on the board. “The relationship my family and I have established with the bank is so beneficial. If I’m able to repay them by making introductions of people I know to the bank, I’d love to be able to do that,” she says. New clients might begin their relationship with a wealth management review - essential in tying up loose ends, according to Sprout. The solutions planned in the review process might result in the development of a family fiduciary plan for loved ones, a succession plan for one’s business (very often overlooked, he says), contingency planning in case of a life changing event, an investment plan for the management of financial assets, and possibly some banking related services, he says.

“Our staff really works as a team, not separate departments,” Sprout explains. “Ours is a holistic planning approach. We only serve about 220 long-term clients in Fort Collins. So our business is not driven by volume. We really ask, how can we add value to clients?”

As Wylie noted, the typical First Western client is interested in being actively involved in their wealth management. As such, “much of our maketing is educational in nature,” he says.

Their educational services include seminars about wealth-life balance, family trusts, philanthropy, business succession, and even how to raise children to be good stewards.

Invitations to FWTB annual client appreciation events are highly prized. Usually each year in April, the bank hosts a nationally known speaker. Guest lecturers have included highly respected economists and political advisors like: former Secretary of Labor, Robert Reich; CNN’s senior political analyst David Gergen; but this year’s guest, Pulitzer Prize winner, George Will will appear in November.

It’s About the People

Ask the leaders of FWTB about the most satisfying parts of their job, and they all invariably talk about the team and the clients.

Wylie relates the story of a job candidate who, after a day of interviews summarized his impressions of the bank. “Everybody here is on a mission: they are all passionate about creating this first private bank and trust in the West. They all talk about trying to do a great job for the clients.”

Benningsdorf continues that thought. “I have a great group of professionals in this [Fort Collins] office that really care about each other and the clients that we serve. It’s great to work for a company that has a vision to be the best it can be.” Not only does FWTB provide excellent service to its clients through teamwork, their commitment to people stretches throughout the city. One of their six core values is community service. “It’s the right thing to do,” Wylie asserts. “You need to connect to local non-profits.”

“We are all actively engaged in the communities we serve to promote a greater social, cultural, and economic good. We encourage employees to volunteer on boards,” states Benningsdorf who herself is a board member of the Weld County American Cancer Society and is a Windsor Rotarian.

Sprout’s public service over the years could entirely fill another article, however he notes that the bank supports many local arts organizations like the Fort Collins Symphony and Bas Bleu Theatre. Currently, he personally volunteers through UniverCity Connections.

On its surface, the banking business seems like it should be all about money, but FWTB’s success is much more than just monetary. Because it was conceived for and remains dedicated to its clients, the bank continues to prove itself worthy of their trust.

Savvy Market Advice - The financial experts from First Western Trust Bank offer a bit of advice in the current market.

FWTB’s CIO Warren Olsen urges people to avoid a “Sky is Falling” reactionary approach. “It might be a good time to do or re-visit your financial plan,” he advises. “Everyone has seen the face value of their portfolios go down, but don’t panic. You want to react in an intellectual, not emotional, way.

“You may need to adjust at the margins by reducing your spending or working a year or two longer. You might need to consider changes to your business structure. You may need to reconsider your investment strategy; perhaps you can’t stomach your initial plan.

“Don’t succumb to short term difficulty (even two or three years of it). Over the long term, people who do best exhibit discipline and patience. Guessing in the short term is impossible, and the cost of being wrong outweighs the benefit of being right.

“We insist that all clients have an investment policy statement to make goals and objectives. After all, if you don’t have goals or objectives you’re always going to be disappointed,” he explains.

Chairman Jim Sprout adds that investing requires total risk assessment: “A good strategy integrates your investment plan with your total situation which includes cash flow management, liquidity needs, taxes, savings and spending plan, risk, rate of return requirements, and asset preservation and protection.”

He adds, “Risk is broader that just investment risk and takes into consideration various economic and market conditions as well as personal circumstances like the loss of income, incapacity, the sale or transfer of an illiquid asset like a business or real estate, and proper insurance coverage.”