Mid Penn Bancorp is fielding a sports and entertainment division designed to cater to the financial needs of high-profile athletes and entertainers.
- The unit formalizes an area where Mid Penn already has been making inroads, said Jordan Space, the bank’s COO.
- Many celebrities have come to know and trust the Harrisburg-based bank through its annual celebrity golf tournament benefitting breast cancer research, said Space, who is also president of Mid Penn’s private bank, which serves high-net-worth individuals and families.
- “That has led to us not only getting more and more people for the golf tournament but also getting more and more referrals from the people that we already do business with,” said Space, declining to name any clients. “And we know that we can execute on something that’s special.”
How does it work: The division, nestled inside Mid Penn’s private bank, is led by bank executives John Carpenter and Anthony Falco.
- The division will operate within Mid Penn’s existing footprint in Pennsylvania and central New Jersey but also nationally.
- It will offer wealth management, trusts, lending solutions, and other products and services but also focus on financial education, Space said.
- College athletes, for example, have growing financial needs, due to the proliferation of so-called name, image and likeness deals.
Is there competition: Yes.
- Given the wealth flowing in the sports and entertainment world — and its often complicated and unpredictable course — numerous banks boast units dedicated to athletes and entertainers.
- One — Los Angeles-based City National Bank — has even been nicknamed “bank to the stars” for its relationships in Hollywood.
- Other banks with a hand in the business include BMO, PNC, Truist and Wells Fargo.
- Recent entrants include Orlando, Florida-based Cogent Bank, which hired former NFL player Brandon Ghee to lead its efforts.
- Space is confident Mid Penn can compete.
- “It really comes back to two things,” he said. “The relationships and the trust are a part of that, and so is the way we service our clients at Mid Penn.”
The background: Wealth management accounted for nearly $5.1 million in revenue for Mid Penn in 2023, roughly even with 2022, according to a year-end earnings release.
- The bank has about $770 million in assets under management overall, Space said.
