Community bank investment programs are on pace to make 2013 a record year.
During the first three quarters of 2013, the programs generated $427.8 million in revenue, the most theyve ever produced in the same nine-month period since 2007, according to the latest report from Michael White Associates, a consulting and research firm based in Radnor, Pa.
Securities brokerage accounted for the lions share of the revenue, bringing in $320.3 million in fee income, up 10.2% from $290.5 million in the first three quarters of 2012. Annuities hauled in the remaining $107.5 million, up a modest 3.8% year-over-year.
On average, the programs generated $299,173, the highest average level of production community banks achieved since the Michael White starting tracking the data in 2007. Financial institutions increased their 2013 year-to-date mean program income by 13.2%, as the banking industry consolidated and bank investment programs strengthened, said Michael Anderson, first vice president of Financial Institutions/Mergers & Acquisitions at Securities America, an independent broker-dealer and sponsor of the report.
According to the report, most community banks managed to grow their investment programs. Of the banks on track to earn at least $150,000 in revenue in 2013, 80% experienced growth relative to the first nine months of 2012, with 65.5% growing 10% or more.
CenterState Bank of Florida was the biggest producer of investment program fee income for the three quarters of 2013, generating $17.94 million, followed by North Shore Community Bank & Trust Company with $16.96 million and TIB The Independent Bankersbank with $6.17 million.
In annuity fee income, Victoria National Bank led the charge, producing $2.03 million, followed by CenterState Bank of Florida with $1.92 million and Bank Mutual with $1.61 million.
The report, titled Michael White Securities America Report: Community Bank Investment Programs, is based on data reported by all 6,891 commercial and savings banks and savings associations operating on Sept. 30, 2013.
Register or login for access to this item and much more
All Bank Investment Consultant content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access