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December 17, 2013 | Press Releases
Michael White-Securities America Report
La Vista, Neb. – Dec. 17, 2013 – Community bank investment programs grew by 8.5 percent in the first three quarters of 2013 with a double-digit increase of 10.2 percent in securities brokerage fee income and more modest growth of 3.8 percent 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., commercial and savings banks and savings associations with less than $4 billion in assets, based on data reported by all 6,891 commercial and savings banks and savings associations operating on Sept. 30, 2013. The annual report examines the 6,689 community banks among the 6,940, and further segments them into five asset classes whose performance is also analyzed.
Michael Anderson, First Vice President of Financial Institutions/Mergers & Acquisitions 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 2013 year-to-date mean program income by 13.2 percent, as the banking industry consolidated and bank investment programs strengthened.”
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
THIRD QUARTER YTD 2013 PERFORMANCE BENCHMARKS FOR COMMUNITY BANK INVESTMENT PROGRAM INCOME | ||
| MEAN PERFORMANCE MEASURES | 3Q 2013 YTD | 3Q 2012 YTD |
| Production - Dollar Volume | $299,173 | $264,351 |
| Concentration - % of Noninterest Income | 7.51% | 6.37% |
| Penetration – $ per Million Dollars of Retail Deposits | $659 | $595 |
| Productivity - $ per Bank Employee | $2,072 | $1,842 |
| Density - $ per Domestic Office | $42,683 | $38,105 |
| SOURCE: Michael White-Securities America Report: Community Bank Investment Programs™ | ||
“Most programs are growing. Of 692 community banks on track to earn revenues of at least $150,000 this year, 4 in 5 (80.1 percent) have grown their investment program income through third quarter, and more than 2 in 3 (65.5 percent) have been growing it at a rate of 10 percent or better so far,” said Michael White, president of Michael White Associates and author of the report. “This rate of growth in bank investment programs was over 12 points higher than in first quarter 2013 (67.8 percent).”
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 $17.94 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 First Victoria National Bank (TX) with $2.03 million, followed by CenterState Bank of Florida (FL), Bank Mutual (WI), AnchorBank, fsb (WI), and Lake City Bank (IN).
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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 1994, 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, the inaugural Bank Insurance & Securities Association (BISA) Technology Innovation Award in March 2013 and was named to the 2013 InformationWeek 500, a list of the top technology innovators in the U.S. 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 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.
For additional information contact:
| Securities America, Inc. (800) 747-6111Michael Anderson, First Vice President of Financial Institutions and Business Development, ext. 7102Email: mianderson@saionline.comWilliam J. Lavender, Regional Vice President, x7111Email: wlavender@saionline.com | Michael White Associates, LLC (610) 254-0440Michael D. White, Ph.D., CLU, ChFC, PresidentEmail: MWA@BankInsurance.com |