By: William Jones
How three local banks joined forces to create a company that changed the face of fiduciary services across Vermont and New Hampshire.
Built for Clients. Led by Community. Rooted in Integrity.
When three community banks from Vermont and New Hampshire joined forces to launch Community Financial Services Group (CFSG) in 2002, it wasn’t with lofty promises or shiny marketing. It was with a quiet conviction to do what was right for their clients.
CFSG was born of relationships and mutual respect. It was also a response to a growing need in the financial services landscape—one that was becoming harder for small-town institutions to meet on their own. As larger firms shifted their focus toward scale and profit margins, CFSG emerged as a different kind of wealth management company: one rooted in local values and built with trust as its cornerstone.
A Different Kind of Vision
Ken Perine, former President of the National Bank of Middlebury, spent years searching for a way to serve clients beyond traditional banking. It wasn’t until he, Richard White of Community National Bank, and Jim Graham of Woodsville Guaranty Savings Bank began sharing ideas that a new possibility emerged.
“We were all trying to reduce operational costs and were meeting to discuss shared services,” Perine recalled. “At one of those meetings, the idea of a joint investment services company came together.”
Richard White had overseen a small trust department at Community National Bank, managing about $20 million in assets. Woodsville was contracting with a third-party provider. National Bank of Middlebury had a brokerage relationship with LPL. Each institution had taken a different path, but none were entirely satisfied with the results. They saw an opportunity to build something better together.
The idea was simple but powerful: create a financial services firm that was independent of proprietary products, that aligned compensation with client success, and that treated clients the way the banks themselves had always aimed to—with personal attention and long-term relationships.
“We didn’t want a transactional model,” Perine said. “We wanted to offer clients steady, trustworthy advice with fees based on performance—not trades.”
The Power of Personal Relationships
That same emphasis on trust was reflected in how CFSG came together. White, Perine, and Graham weren’t just business partners; they respected one another and shared a similar philosophy.
“We all liked each other. We liked the way we approached our institutions,” Perine said. “There was alignment in values, even if our business models differed.”
Jake Wheeler, a founding board member brought in by Community National Bank, underscored that early momentum. “We didn’t launch CFSG with a five-year plan. It wasn’t about aggressive targets. It was about providing a needed service and doing it right.”
The early years were careful and steady. The founders hired thoughtfully. Among the first employees were Linda Parenteau and other trust officers from Community National Bank, followed by Doug MacCallum, a former teacher who became one of CFSG’s earliest investment advisers. Then came Joe Preddy, who joined in 2002 when CFSG officially launched as a separate company.
“I remember Joe saying that some people didn’t think he’d last six months,” Perine said with a smile. “Now he’s the president.”
Growing from Within
Preddy, now President and CEO of CFSG, brought experience from Merrill Lynch and Smith Barney but left that world behind for a new kind of opportunity.
“This was a leap of faith,” he said. “It was a huge shift from national firms, but I saw the potential. The mission was clearer, and the focus was local.”
CFSG would offer full-service financial planning, with no minimum account size and no push toward internal products. “Even before CFSG, I believed that if someone’s money was important to them, it should be important to me. That’s still our mindset,” Preddy said.
Wheeler echoed that philosophy. “Our job was to set the tone. We hired based on integrity and a desire to do right by people.”
As the business expanded, Preddy and his team never strayed from the firm’s founding principles. “When clients call, we know their names,” he said. “We don’t ask them for their birthdate. We ask how their grandkids are doing.”
Leadership Built to Last
One reason CFSG has endured is its leadership’s foresight. Wheeler described how every hire, every promotion, and every board decision was made with culture in mind.
“Mark Frederick brought energy and experience to the CEO role, and when he moved on, Joe was ready. Promoting from within helped preserve what made CFSG unique,” Wheeler said.
Ken Perine, now retired, agreed. “At the National Bank of Middlebury, we always focused on growing leaders from within. That continuity helps preserve culture. And that’s what CFSG has done too.”
It’s a tradition that stretches from the boardroom to the front desk. Preddy noted, “People stay here a long time. That’s unusual in this industry.”
Navigating Change with Steady Hands
Not every chapter in CFSG’s history has been easy. In 2025, Woodsville Guaranty Savings Bank, one of the firm’s original owners, was acquired by Bar Harbor Bank. That meant CFSG would no longer have physical offices inside former Woodsville branches.
“We found out about the merger in March, and by July, we had vacated offices, relocated, and ensured clients weren’t impacted,” Preddy said. “It was intense, but our service didn’t miss a beat.”
He credits the team for making it happen. “Everyone pulled together. We opened new offices in Littleton, and our New Hampshire staff continued doing what they’ve always done—serving clients with excellence.”
Wheeler added that this was precisely the kind of moment CFSG was built to withstand. “When you have the right people and the right values, you can adapt without losing your identity.”
A Model That Still Works
Today, CFSG serves clients in more than 40 states. It manages portfolios both large and small, always with the same flat-fee structure that reflects its fiduciary roots.
“We don’t charge based on transactions. We don’t push products. And we don’t have minimums,” Preddy said. “If someone wants to invest $100 a month, we’ll help them. If they have $30 million in trusts, we can do that too.”
It’s a model that Perine takes pride in. “When I retired, I put all my assets with CFSG. That was my vote of confidence. And I’ve never looked back.”
Still Local. Still Trusted. Still Growing.
More than two decades after it was founded, CFSG remains what it was always meant to be—a financial services company that values relationships over revenue, service over sales, and trust over trends.
Its legacy lives not only in the assets it manages but in the people who built it and continue to carry it forward.
“We started this because we wanted to do something better for our communities,” Wheeler said. “And we’ve done that.”
Perine agreed: “It felt good then. It feels good now. It’s one of the best things I’ve been part of.”
And as White put it, “We believed that if we kept doing the right thing—for the right reasons—people would trust us. That’s still what matters most.”
Disclaimer: Community Financial Services Group (CFSG) provides fiduciary and investment management services. The information in this article is for informational purposes only and does not constitute financial advice. Investments are subject to risks, including the potential gain or loss of principal. CFSG accounts are not guaranteed or insured by any bank, depository institution, or government agency, including the FDIC or the Federal Reserve Board. CFSG is the trust and investment management affiliate of Community National Bank and National Bank of Middlebury, and the trust and investment non-affiliate for Peoples Trust Company of St. Albans. Please consult with a financial advisor for personalized advice.
