Rosemont, Illinois-based Signature Bank has recently launched Signature Trust, a new trust division, in response to a surge in trust-related enquiries from clients. The bank, which primarily serves family-owned small businesses and legal firms, previously lacked the necessary trust capabilities and was required to refer clients to third-party companies, a practice that was far from ideal.
Signature Bank’s Innovative Trust Solution
According to Bryan Duncan, the co-founder of Signature Bank, the institution was not in a position to establish a standalone trust company due to its scale and available capital. Additionally, the bank was hesitant to take on the significant compliance challenges associated with operating a community bank. However, the $1.96 billion-asset Signature Bank identified a solution to these issues, which involved forming a partnership with an established trust company to create a bank-branded trust unit.
Midwest Trust, an $18 billion-asset trust company based in Overland Park, Kansas, became the chosen partner for this venture. With Midwest Trust’s backing, the newly formed Signature Trust is equipped to handle the trust needs of clients. Duncan acknowledged that while this arrangement does not offer full control of client relationships, which the bank prefers, he is confident that Midwest Trust will serve their clients effectively.
Trust Services Offered by Signature Trust
Signature Trust will offer clients a variety of trust services, which include personal trust administration, retirement and IRA trusts, estate settlement and executor services, as well as investment management accounts. The decision to launch the trust division comes at a time when several banking institutions are downsizing their trust assets, aiming to streamline operations. However, Signature Bank views this as an opportunity to cater to the increasing trust needs of their clients.
Industry Trends in Trust Services
Several industry leaders, such as Huntington, Citi, and BMO Harris, have chosen to offload their trust units. For instance, in June, Huntington Bancshares opted to sell a portion of its corporate trust and institutional trust business to Argent International Trust, based in Tampa, Florida. Meanwhile, Citi sold its global fiduciary and trust business to the U.K.-based JTC Group. Furthermore, in January 2025, the $1.3 billion-asset Bank of Idaho sold its trust and wealth management division to Idaho Trust.
These trends have provided opportunities for Midwest Trust, which provides investment, operations or trust services to over 50 banks nationwide. The company has notably benefited from the industry’s shift, acquiring an institutional trust services business from BMO Bank in December 2023.
Future Plans and Strategy
Signature Bank’s agreement with Midwest Trust allows the bank the flexibility to gradually bring some or all of its trust business in-house. However, Duncan stated that the bank has no immediate plans to do so, as outsourcing to experts in areas outside of their core competency has proven to be a successful strategy for the bank.
Matthew Ordway, Managing Director of Signature Chicago Wealth Management, the bank’s wealth management unit, expressed that the addition of a trust function aligns well with his group. Ordway highlighted that the trust division allows the bank to engage in holistic conversations with clients and better understand their needs.
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