Michael White-Securities America Report: Community Bank Investment Programs Grow, But Slow at Year-End 2011
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 6,679 commercial banks and FDIC-regulated savings banks operating on December 31, 2011. The annual report examines the 6,510 community banks among the 6,679 and further segments them into five asset classes whose performance is also analyzed.
"The 2011 revenues of community bank investment programs remained slightly ahead of those in 2010. While 2011 was the best year for program revenues since 2007 and second quarter was the highest quarter since first quarter 2008," said Gregg Johnson, Securities America senior vice president, "fourth quarter 2011 income was lower than that of fourth quarter 2010. Both the third and fourth quarters reflected a slide from program revenue in the second quarter."
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
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 $26.30 million, followed by North Shore Community Bank & Trust Company (IL), TIB The Independent Bankersbank (TX), BAC Florida Bank (FL) and The Washington Trust Company of Westerly (RI) rounding out the top five. Among the top five in annuity fee income were Lake City Bank (IN) with $1.88 million, followed by First Victoria National Bank (TX), Centier Bank (IN), Marquette Bank (IL) 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.