August 09, 2012 | Press Releases
Michael White-Securities America Report: 60% of Community Bank Investment Programs Set to Earn $250K Grow in 1QLAVISTA, Neb. – Aug. 9, 2012 – Community bank investment programs grew 8.5 percent in first quarter 2012, but most of the growth was due to the influx of thrift (i.e., savings association) data, according to the Michael White-Securities America Report: Community Bank Investment Programs™. Until this year, thrifts had not previously reported line item noninterest fee income.
The report measures and benchmarks investment programs at community banks, i.e., banks with less than $4 billion in assets, based on data reported by all 7,307 commercial banks, FDIC-regulated savings banks and, for the first time, savings associations operating on March 31, 2012. The annual report examines the 6,685 community banks among the 7,307 and further segments them into five asset classes whose performance is also analyzed.
“Perhaps the best news among first-quarter findings is that, of 412 community banks on track to earn a minimum $250,000 in yearly program revenues, three in every five (59.0 percent) experienced growth over first quarter 2011,” said Gregg H. Johnson, Senior Vice President at Securities America. “In fact, nearly half (48.5 percent) registered double-digit growth in program revenues. In addition, first quarter 2012 mean program income was 5.7 percent
higher compared to 2011.”
The report analyzes several key measurements commonly used in banks:
- Program Production - investment program fee income
- Program Penetration - program revenue generated per million dollars of core or retail deposits
- Program Concentration - the portion of total noninterest income attributable to investment program fee income as an indicator of how meaningful bank investment programs are among banks’ nonlending activities
- Program Productivity - program fee income per bank employee
- Program Density - program fee income per domestic banking office
|Performance Benchmarks for Community Bank Investment Program Income|
|Performance Measures||1Q 2012 Mean Ratios||1Q 2011 Mean Ratios|
|Production - Dollar Volume||$91,151||$86,269|
|Concentration - % of Noninterest Income||7.56%||7.90%|
|Penetration - $ per Million Dollars of Retail Deposits||$204||$210|
|Productivity - $ per Bank Employee||$634||$634|
|Density - $ per Domestic Office||$13,496||$14,584|
SOURCE: Michael White-Securities America Report: Community Bank Investment Programs™
The report also analyzed the growth in income from securities brokerage fees and annuity fees, and identified which community banks were leading in those areas of income. CenterState Bank of Florida (FL) led in investment program fee income with $8.59 million, followed by North Shore Community Bank & Trust Company (IL), TIB The Independent Bankersbank (TX), United Bankers’ Bank (MN) and Espirito Santo Bank (FL) rounding out the top five. Among the top five in annuity fee income were AnchorBank, fsb (WI) with $684,000, Community Bank Investment Programs followed by CenterState Bank of Florida (FL), Lake City Bank (IN), First Victoria National Bank (TX) and United Bank (WV).
About Securities America
Headquartered in La Vista, Neb., Securities America Inc. is the nation’s eighth largest independent broker-dealer (as ranked by Financial Planning magazine, June 2012, based on 2011 total revenue). For more than 25 years, Securities America’s mission has been to foster the success of financial professionals so they can provide quality, objective counsel and services to their clients. Advisors benefit from the firm’s industry-leading programs in practice management, advisory services and retirement income distribution, supported by state-of-the-art technology. Founded in 1993, Securities America Advisors Inc. is an SEC-Registered Investment Advisory firm that offers investment management, financial advice and financial planning through a national network of independent financial advisors. Securities America Financial Corp. is a wholly owned subsidiary of Ladenburg Thalmann Financial Services Inc. (NYSE MKT: LTS). Securities America received the inaugural Thought Leadership Award from the Retirement Income Industry Association in March 2011. Additional information is available at www.securitiesamerica.com.
About Michael White Associates
Michael White Associates, LLC (MWA) is a consulting, publishing and research firm headquartered in Radnor, PA, and online at www.BankInsurance.com. Produced by Michael White and Michael White Associates, LLC (MWA), the Michael White-Securities America Report: Community Bank Investment Programs™ measures and benchmarks the performance of community banks’ investment programs. The annual Michael White-ABIA Bank Annuity Fee Income Report™ and Michael White-Prudential Bank Insurance Fee Income Report™ provide, respectively, comprehensive analyses of bank annuity commission income and bank insurance brokerage. Additionally, the MWA Fee Income Ratings Reports™ compare, rank and rate a particular financial institution’s insurance or other noninterest fee income program nationally, regionally, statewide and in its asset-peer group. Copies of MWA reports can be ordered by calling (610) 254-0440, or by visiting www.BankInsurance.com.
For additional information contact:
Securities America, Inc.
Phone: (800) 747-6111
Michael Anderson, First Vice President of Financial
Institutions and Business Development, ext. 7102
Tim Militti, Regional Vice President, ext. 7100
Michael White Associates, LLC
Phone: (610) 254-0440
Michael D. White, Ph.D., CLU, ChFC, President