January 15, 2013 | Press Releases
Michael White-Securities America ReportLA VISTA, Neb. – Jan. 15, 2013 – Community bank investment programs grew by 10 percent in the first three quarters of 2012 with a double-digit increase in securities brokerage fee income and near double-digit growth in annuity commissions and fees, according to the Michael White-Securities America Report: Community Bank Investment Programs™.
The report measures and benchmarks investment programs at community banks, i.e., banks and savings associations with less than $4 billion in assets, based on data reported by all 7,181 commercial and savings banks and savings associations operating on Sept. 30, 2012. The annual report examines the 6,975 community banks among the 7,181, and further segments them into five asset classes whose performance is also analyzed.
Gregg Johnson, senior vice president at Securities America said, “Total revenues of community bank investment programs rose to their highest point over three quarters since 2007, when we were first able to measure them. Financial institutions increased their 2012 year-to-date mean program income by 6.6 percent, as the banking industry consolidated and bank investment programs strengthened. Of community banks on track to earn revenues of at least $200,000 in 2012, nearly 3 in 5 (56 percent) have grown their investment program income through third quarter, and more than 1 in 4 (27 percent) have been growing it at a rate of 20 percent or better so far.”
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’ non-lending 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
3Q 2012 YTD
3Q 2011 YTD
|Production - Dollar Volume|
Concentration - % of Noninterest Income (adjusted)
Penetration – $ per Million Dollars of Retail Deposits
Productivity - $ per Bank Employee
Density - $ per Domestic Office (adjusted)
|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 $28.84 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 CenterState Bank of Florida (FL)) with $1.63 million, up enormously from $27,000, followed by Bank Mutual (WI), AnchorBank, FSB (WI), First Victoria National Bank (TX) and Lake City Bank (IN).
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) 747-6111Michael Anderson, First Vice President of Financial Institutions and Business Development, ext. 7102 Email: firstname.lastname@example.org|
Tim Militti, Regional Vice President, ext. 7100
William “J” Lavender, Regional Director, ext. 7111
|Michael White Associates, LLCPhone: (610) 254-0440Michael D. White, Ph.D., CLU, ChFC, PresidentEmail: MWA@BankInsurance.com|