Michael White-Securities America Report
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 7,019 commercial and savings banks and savings associations operating on March 31, 2013. This quarterly report examines the 6,817 community banks among the 7,019; the annual report further segments them into five asset classes whose performance is also analyzed.
"It is good news that community bank investment program income continues to grow," said Michael Anderson, first vice president of financial institutions/mergers and acquisitions at Securities America. "It is even better news to know that results in the first three months of this year constituted the best first quarter since 2007, the first year in which we were able to measure them."
Of 673 community banks that reported investment program income in first quarter 2013 and are on track to earn minimum revenues of $150,000 in 2013, 456 banks or two-thirds (67.8 percent) grew their investment program income over last year, and 378 banks or nearly three in five (56.2 percent) grew it at a rate of 10 percent or better so far. "None of these findings include the 21 new programs reporting first quarter income for the first time and on track to earn at least $150,000," Anderson added.
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
1Q 2013 MEAN RATIOS
1Q 2012 MEAN RATIOS
|Production - Dollar Volume|
|Concentration - % of Noninterest Income|
|Penetration - $ per Million Dollars of Retail Deposits|
|Productivity - $ per Bank Employee|
|Density - $ per Domestic Office|
|SOURCE: Michael White-Securities America Report: Community Bank Investment Programs„¢|
CenterState Bank of Florida (FL) led in investment program fee income with $7.42 million, followed by North Shore Community Bank & Trust Company (IL), TIB The Independent Bankersbank (TX), Johnson Bank (WI), and United Bankers' Bank (MN) rounding out the top five. Among the top five in annuity fee income were CenterState Bank of Florida (FL)) with $616,000, followed by AnchorBank, fsb (WI), First Victoria National Bank (TX), Lake City Bank (IN), and Sun National (NJ).
About Securities America
Headquartered in La Vista, Neb., Securities America Inc. is a national top 10 independent broker-dealer (as ranked by Financial Planning magazine). 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 and the inaugural Bank Insurance & Securities Association (BISA) Technology Innovation Award in March 2013. 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 Equias Alliance/Michael White BOLI Holdings Report„¢ and Michael White Bank Insurance Fee Income Report„¢ sponsored by Dowling Hales provide, respectively, comprehensive analyses of bank-owned life insurance assets and bank insurance brokerage fee income. 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.