Investment programs at banks and credit unions boosted the revenue they generated to a record high, according to a new report from Michael White Associates, a consulting and research firm based in Radnor, Pa. 

In 2013, the programs produced $568.3 million in income, up 8.9% from the previous year and the most they’ve ever produced since Michael White started tracking the data in 2007.

Securities brokerage accounted for the lion’s share of the revenue, bringing in $425.1 million, up 8.9% from $385.0 million in 2012. Annuities hauled in the remaining $143.1 million, up 4.7% year-over-year.

On average, the programs generated $391,363 in fee income, the highest level of production achieved since 2007.  In terms of their “penetration ratio,” they produced an average of $858 per million dollars of retail bank deposits, significantly less than the $1,081 the average larger bank with more than $4 billion in assets produced. “The higher amount indicates that community banks can further grow their programs by increasing [the] penetration of their customer bases,” White said in a statement.

According to the report, most community banks managed to grow their investment programs.  Of the 704 community banks with at least $150,000 in program revenue, 82.5% had positive growth during the year, with 67.9% growing 10% or more and 49% growing in excess of 20%.

CenterState Bank of Florida was the biggest producer of investment program fee income in 2013, generating $22.52 million, followed by North Shore Community Bank and Trust Co. with $22.21 million and TIB The Independent Bankersbank with $7.57 million.

In annuity fee income, CenterState Bank of Florida also led the charge, producing $2.57 million, followed by AnchorBank and Bank Mutual, each bringing in $2.18 million.

The report, titled “Michael White – Securities America Report: Community Bank Investment Programs”, is based on data reported by all 6,812 financial institutions operating on Dec. 31, 2013, including 6,608 community banks.  The report was sponsored by Securities America.

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