Principal® Expands Custody Solutions Program for Regional and Community Banks

Principal Financial Group^®  announced the expansion of its Principal^® Custody Solutions Bank Referral Program to help address a common obstacle regional and community banks face when seeking an institutional trust and custody services partner.

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The complexity and operational demands of custody services often lead regional and community banks to seek a partner. Many turn to large national providers, but some partnerships can introduce overlap with core banking relationships. Principal Custody Solutions, which does not offer commercial lending or treasury management services, provides custody and trust services designed to complement rather than compete with our partners’ client relationships.

“Banks are looking for partners who help them deliver more to their clients while reinforcing the relationships they’ve built,” said Mike Gaul, CEO Principal Trust Company^® and Head of Principal Custody Solutions. “We support that effort by providing specialized capabilities that help banks expand their offerings while remaining at the center of the client relationship.”

Principal® Custody Solutions Bank Referral Program provides flexible engagement options, including referral partnerships and full acquisition support for banks seeking to transition custody operations. Participating institutions can benefit from:

• Access to institutional-grade custody and trust services
• Revenue growth opportunities through referrals
• Protection of client relationships
• Reduced need for capital investment and operational buildout

“Working with Principal allows Northrim Bank to deliver a more comprehensive, integrated solution to our Alaska clients,” said Doug Ladenburger, senior vice president of Treasury Management Services at Northrim Bank. “By combining our local relationship-based banking model with custodial capabilities through Principal, we’re able to offer secure asset safekeeping, transparent reporting, and a seamless client experience.”

Principal Custody Solutions currently serves over 2,100 clients across more than 11,500 accounts, safeguarding over $1.2 trillion in assets, underscoring its institutional scale and experience. ¹

“At a time when many banks are being asked to do more with less, this program provides a clear path for banks aiming to grow, retain, and compete more effectively,” Gaul added. “It’s about helping banks stay at the center of their client relationships and remain the trusted financial partner as customer expectations continue to evolve.”

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