Michael White-Securities America Report
Sponsored by Securities America and issued by Michael White Associates, LLC, the report measures and benchmarks investment programs at community banks, i.e., banks with less than $4 billion in assets. The current quarterly report is based on data reported by all 6,589 commercial and savings banks and savings associations operating on September 30, 2014. The annual report specially examines the 6,373 community banks among the 6,589, 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 2014 year-to-date mean program income by 2.7%, 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 2014 PERFORMANCE BENCHMARKS FORCOMMUNITY BANK INVESTMENT PROGRAM INCOME|
|MEAN PERFORMANCE MEASURES||3Q 2014 YTD||3Q 2013 YTD|
|Production - Dollar Volume||$307,365||$299,173|
|Concentration - % of Noninterest Income||8.20%||7.51%|
|Penetration - $ per Million Dollars of Retail Deposits||$654||$659|
|Productivity - $ per Bank Employee||$2,142||$2,072|
|Density - $ per Domestic Office||$40,208||$42,683|
|SOURCE: Michael White-Securities America Report: Community Bank Investment Programs„¢|
"Most programs are growing. Of 711 community banks on track to earn revenues of at least $150,000 this year, 7 in 10 (70.9%) have grown their investment program income through third quarter, and more than half (52.0%) have been growing it at a rate of 10% 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, however, was over 9 points lower than in third quarter 2013 (80.1%)."
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. Wintrust Bank (IL) led in investment program fee income with $17.80 million, followed by CenterState Bank of Florida (FL), Johnson Bank (WI), Espirito Santo Bank (FL), and TIB The Independent Bankersbank (TX) rounding out the top five. Among the top five in annuity fee income were CenterState Bank of Florida (FL) with $2.03 million followed by AnchorBank, fsb (WI), Bank Mutual (WI), Firstrust Savings Bank (PA), and Centier Bank (IN).
About Securities America
Securities America is one of the nation's largest independent broker-dealers with more than 1,800 independent advisors and $50 billion in client assets.
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. |
Michael Anderson, First Vice President of Financial Institutions and Business Development, ext. 7102
William J. Lavender, Regional Vice President, x7111
|Michael White Associates, LLC (610) 254-0440Michael D. White, Ph.D., CLU, ChFC, President|
Securities America Advisors, Inc. - An SEC Registered Investment Advisory Firm
Securities America, Inc. - Member FINRA/SIPC