In January 2024, a small investor group acquired Union Springs-based Community Bank & Trust and rebranded it as LifeSteps Bank & Trust. The group was led by Henry Ford, who is the principal and senior adviser for LifeSteps Financial, a registered investment advisory based in Claremont, California; Hill Womble, chief executive officer; and Adam Russell, a director. Today, the LifeSteps executive team also includes President and Chief Credit Officer John Johnson and Chief Financial Officer Dana Potts.
The bank’s goal is to be a commercial bank that works hand-in-hand with a wealth management office, says Womble, who has been in banking more than 30 years — most recently as president, CEO and director of Merit Bank in Huntsville, where he is credited with growing the bank’s total assets from $25 million to more than $155 million between March 2019 and December 2020.
The reasoning behind this two-pronged approach, he says, is in part to address the financial needs of what is being called the “silver tsunami.” The term refers to the large number of baby boomers reaching retirement age — an estimated 10,000 Americans are turning 65 every day, and the trend is expected to continue through 2050. With it comes an enormous amount of wealth transfer estimated to be between $60 and $70 trillion over the next 25 years.
“So, what that means to us is you have this baby boomer generation that has been running companies and building companies, and at some point in the near future they’re reaching that retirement age, and they need an exit strategy along with a plan for the next phase of life,” says Womble.
The form that exit takes, whether it’s an employee stock ownership plan (ESOP), selling the company outright or passing it down to family members, creates different opportunities and different needs, and that’s where the LifeSteps wealth management office comes in.
For example, the person exiting the company needs to be bought out, Womble explains, and they’ll likely need advice on how to handle the money they’ll be receiving and the timing of it, what kind of taxes are going to be involved and what kind of financial plans they may want to put in place for the next generation.
“We believe this to be a unique and wonderful opportunity to support these relationships with their commercial banking needs and support them as they move into a new phase of life with different needs as they exit their business. We like the idea of supporting both sides of the equation. They have known their banker for a while and under this approach, they don’t have to leave the relationship, they simply add to it,” says Womble.
Womble is quick to add that this idea isn’t new, but that often these situations are handled by much bigger national banks and on behalf of larger companies.
“They’ve done it for decades, and we recognize that we’re not a three- or four- or five-decade-year-old bank; we will be a newer bank. But we do have a lot of relationships [with companies] that we can easily put a finger on that in the next few years will be transferring $10, $15, $20, $25 million and would prefer not to have to start over building a new relationship with a new financial service provider. They know that we care.”
“It really starts with building a strong, safe and stable commercial bank to attract those customers that are involved heavily with growing their business and growing their family enterprises,” adds Johnson, who has more than 25 years of banking experience and most recently served in roles focused on commercial and small business credit during his 12-year tenure at Regions Bank.
One thing Johnson thinks sets LifeSteps apart in a crowded banking market is its ability to provide a more person-to-person approach to addressing their clients’ needs.
“Even in a day and age where banks are [operating] more like technology companies than financial institutions, we think we can bring more of that consultative expertise found in high-worth- or middle-market-style conversations and enterprises down to the small and medium business and the entrepreneur segment.” That, he continues, will build a high degree of trust. “And then, as we grow, we’ll introduce wealth management to those same customers.”
LifeSteps is a state-chartered branch, and, while the original Union Springs location will remain open, the financial institution will be headquartered in Huntsville. Renovations are currently underway at an office on Church Street near downtown Huntsville, with plans to be fully operational by the end of the year.
Johnson says they are excited about moving to Huntsville and the broader North Alabama market. “It’s a great place and a hotbed for the exact kind of business thesis that we’ve identified. Huntsville finds itself with double-digit growth in both population and deposits for the last several years, and that’s going to continue.”
For Womble, the allure of Huntsville’s development and economic strength goes without saying.
“I think a quick review of our board members gives some insight into our kind of model and how we’re trying to build it,” he says, pointing to Board Chairman Kelli Powers, who is CEO of the Decatur Morgan Hospital System and was formerly chief financial officer of the Huntsville Hospital Health System. “When we talk about a healthy community, we’ve got a very key, influential person [who plays] a key role in the community and also a key role on our board.”
Board Vice Chairman Patrick Frawley has spent some 50 years in banking, including work as a bank regulator for the Office of the Comptroller of the Currency and executive roles in corporate banking. Another board member, Rich Raleigh, is a partner in the Huntsville office of Womble Bond Dickson, an international law firm where he focuses on government contracts, employment law, complex business litigation and civil litigation. He is also a former president of the Alabama State Bar. And Madison native Ronnie Williams is CEO of Timber Products Inspection Inc., a company headquartered in Peachtree City, Georgia, that provides inspection and testing services for the forest products industry in 49 states and internationally.
“Hill and I and many of our board members have a real concentration of experience here in dealing with the economy and the facets of the Huntsville and broader North Alabama market,” says Johnson.
And while the solidity of its board is something they both say strengthens their business model, ultimately, they agree, it’s all about fostering a healthy community and a deep level of trust with their clients.
“We want to make sure we’re providing a high degree of connectivity between our customers as well as the resources within the bank,” says Johnson — for example, introducing clients who operate within the same supply chain or industry to each other or connecting a business that’s experiencing a financial or operational problem with another business who may be able to provide a solution.
“We’re going to be a commercial bank, not a community bank,” Johnson says. “But what we want to do is build community — community within our team and within our clientele.”
Katherine MacGilvray and Dennis Keim are Huntsville-based freelance contributors to Business Alabama.
This article appears in the October 2024 issue of Business Alabama.
