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 6,812 commercial and savings banks and savings associations operating on December 31, 2012. The annual report examines the 6,608 community banks among the 6,812, 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 since 2007, when we were first able to measure them. Better still, hundreds of bank programs have been growing rapidly. Of 704 community banks with investment program income in 2012 and at least $150,000 in investment program revenues in 2013, 581 banks or more than four in five (82.5%) had positive growth of some amount in their investment program income, and 478 banks or two in three (67.9%) grew it at a rate of 10% or better so far and 345 or one in two (49.0%) grew in excess of 20%."
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
2012 INVESTMENT PROGRAM INCOME
PERFORMANCE BENCHMARKS FOR COMMUNITY BANKS
|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 $22.5 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 $2.57 million, followed by AnchorBank, fsb (WI), Bank Mutual (WI), Lake City Bank (IN) and Sun National Bank (TX).
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 (MWA) is a bank insurance consulting firm headquartered in Radnor, PA, and at www.BankInsurance.com. The annual Michael White Bank Insurance Fee Income Report„¢ and Michael White-Securities America Report: Community Bank Investment Programs„¢ provide, respectively, comprehensive analyses of bank insurance brokerage and community bank investment programs. 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
|Michael White Associates, LLC|
Phone: (610) 254-0440
Michael D. White, Ph.D., CLU, ChFC, President
Securities America Advisors, Inc. - An SEC Registered Investment Advisory Firm
Securities America, Inc. - Member FINRA/SIPC