Community banks’ investments programs enjoyed the best first half since at least 2007, according to Michael White Associates.
A report sponsored by Securities America and issued by Michael White shows double-digit growth in securities brokerage fee income and near double-digit growth in annuity commissions.
The report, which focused on banks and savings associations with less than $4 billion in assets, found a total of $266 million in program income for the first half, up 11% over the same time period last year. There were 1,468 institutions in this category so the average program income was $181,170, up from $168,614 the previous year.
These are the highest such levels since 2007 when these data first became accessible.
Annuity fee income alone accounted for more than one-quarter (26.5%) of overall revenue for community bank programs. For the first half, annuity income was $70.5 million, up 9.3% in year-over-year comparisons.
One area where community banks lag their larger counterparts was in the common program-revenue-per-core-deposit gauge. Community banks generated $408 in program revenue per $1 million in deposits, down 1.4% from the previous year. Big banks generated $502 per $1 million in deposits.