Cetera strengthens financial institutions division with new bank partnerships

Cetera is continuing to make moves in the community and local banking space this week, adding two new partners to its already formidable financial institutions division.

Cetera Financial Institutions has added two more banking partners to its growing network, with Peoples Bank and Trust and Alma Bank both selecting the privately held hybrid RIA giant to support their investment services programs.

The new relationships highlight Cetera’s ongoing focus on serving community banks and credit unions, as well as its efforts to attract institutions seeking greater flexibility and support for their advisors and clients.

Peoples Bank and Trust, which oversees about $120 million in assets under administration through its Peoples Financial Management & Planning program, recently transitioned from LPL Financial to Cetera. The move followed an evaluation process that prioritized responsiveness and service quality, according to Logan Schrag, executive director of the program.

Schrag said in the announcement that the bank wanted a partner who shares its “commitment to excellence,” adding that Cetera’s approach to relationship-building and support for community banks was a key factor in the decision.

LeAnn Rummel, president and chief executive of Cetera Investment Services, said the partnership would help Peoples Bank and Trust pursue further growth, noting that the two organizations are “well aligned” in their missions and values.

The partnership with Peoples Bank and Trust comes shortly after news that Alma Bank, which operates in the New York metro area, has elected to entrust Cetera with its own investment program under Alma Wealth Management.

The transition is being led by Richard Koll, who joined Alma Bank as head of wealth management after holding leadership roles at Osaic Institutions

Koll began his affiliation with Osaic Institutions as an investment professional in 2022, according to his LinkedIn profile. From there, he ascended to become SVP of client experience, a role he held for more than two years before his departure from Osaic  in August.

Before Osaic, Koll was with Investors Bancorp, where he led a similar investment program in partnership with Cetera prior to the bank's 2022 acquisition by Citizens Financial Group.

Read more: Citizens Financial CEO hunts for wealth deals

Koll pointed to Cetera’s “deep understanding of how to serve financial institutions” and its hands-on support as reasons for the move, saying the firm is the right partner to help Alma Wealth Management “scale and serve clients on our terms.”

A LinkedIn post by Cetera explained that AWM is elevating its investment program by "internalizing operations and launching a dual employee model in partnership with Cetera Financial Institutions."

Michael Psyllos, president and chief executive of Alma Bank, said the new partnership is expected to support the bank’s overall growth strategy.

The two new banking relationships come as Cetera continues to expand its presence in the institutional space. Earlier this year, Los Angeles Federal Credit Union moved its $160 million wealth management business from LPL to Cetera, joining a list of credit unions that have made similar moves since 2024.

Cetera also established a Credit Union Council last year to facilitate collaboration among leaders in the segment.

Cetera Financial Institutions supports investment programs for more than 450 banks and credit unions. The firm reported a 99% retention rate for institutions in its network as of October 2024, reflecting its emphasis on long-term partnerships and service continuity.