$1.6B RIA and Trust Company to Split from Bank Parent$1.6B RIA and Trust Company to Split from Bank Parent

HFG Trust, the wealth management subsidiary of Community First Bank in Washington with about $1.6 billion in assets, and its affiliated trust division will go independent in July or August of this year.

The Kennewick, Wash.-based registered investment advisor will be taking back its ownership stake from Community First Bank, with BNY Mellon Pershing and Charles Schwab as its custodians, this summer, according to managing director William Wang. The firm will retain its structure in the move, keeping a presence in Berkeley, Calif. and Roseburg, Ore., in addition to Washington.

With the new setup, Wang will take the CEO title, and the shareholder pool for the firm will shrink, with those not remaining getting cash-outs.

HFG, founded in 1985, became a subsidiary of Community First Bank in 2016. In October, the bank signed an agreement to be acquired by Richland, Wash.-based HAPO Community Credit Union, which led to the RIA going independent. HFG will continue a strategic partnership with HAPO, Wang said.

“This wasn’t by design in the sense that it wasn’t something we were trying to do,” he said. “But it’s the nature of community banking, with credit unions buying them up.”

HFG has a team of 32, including 11 financial advisors. It offers financial planning, 401(k) advice to businesses and trust and estate services.

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Wang said there are advantages to disaffiliating from the bank both for HFG Trust and clients.

“Going independent can be beneficial because you’re a lot more nimble and can operate purely from a fiduciary level and not worry about other business lines,” he said.

He said the firm will seek to grow organically and inorganically, with strategic acquisition interest in Washington or nearby states.

HFG Trust acquired RIA Professional Investment Management Services in January of 2024, a Kennewick, Washington-based firm led by Garrick Russell.

Wang started with the firm as a financial planner in 2011.

This week, a study published by consultancy Cerulli Associates forecasted that the independent RIA channel would be the fastest-growing wealth advisory channel in the coming year.