The Dukes County Savings Bank has opened a trust department in North Tisbury, restoring local trust services to the Vineyard.
The Martha’s Vineyard National Bank sold its trust department in March, effectively shutting the Island’s only trust department.
“We think this is a service that should remain on Martha’s Vineyard,” Edward Mayhew, president of the Dukes County Savings Bank, said this week.
The Dukes County Savings Bank has opened the new office exclusively for trust services, across the street from its North Tisbury bank branch. The bank has also hired the four former employees of the Martha’s Vineyard National Bank.
Robert Kelley is serving as senior trust officer, along with Paul Ryan, Katie Davies and Melissa Healy.
The Dukes County Savings Bank last week received the state approval necessary to open a trust department. The bank applied for permission in April, soon after news that the Island’s only trust department would close.
Meanwhile, Martha’s Vineyard National Bank also received approval to sell its trust department to State Street Bank and Trust Department. State Street is actively seeking trust customers on the Vineyard. Vineyard accounts are being managed by State Street’s Hyannis office.
Martha’s Vineyard National Bank president Edward S. Redstone said his bank decided to sell the department because it was not profitable for a small bank to operate. Trust departments are traditionally not profitable for small banks because the assets cannot be loaned out.
“Over the past several years it’s become quite apparent that we could not do the job that State Street can,” Mr. Redstone said. “It’s like comparing a rowboat to a steamship.”
The fees at State Street are slightly higher than those at Martha’s Vineyard National Bank, Mr. Redstone said, but the services are also more complete.
“State Street is recognized as a leader in the financial services industry and, in our judgment, is the best possible institution to which to transfer our trust department.”
Mr. Mayhew said his board’s decision to begin a trust department came in response to the sale at Martha’s Vineyard National Bank.
“There is a direct relationship between the two,” Mr. Mayhew said. “We were approached by a number of Island people and asked to consider this. We’re thinking of this as a service to the community.”