Community bank investment programs are on pace to make 2013 a record year.
During the first three quarters of 2013, the programs generated $427.8 million in revenue, the most theyve ever produced in the same nine-month period since 2007, according to the latest report from Michael White Associates, a consulting and research firm based in Radnor, Pa.
Securities brokerage accounted for the lions share of the revenue, bringing in $320.3 million in fee income, up 10.2% from $290.5 million in the first three quarters of 2012. Annuities hauled in the remaining $107.5 million, up a modest 3.8% year-over-year.
On average, the programs generated $299,173, the highest average level of production community banks achieved since the Michael White starting tracking the data in 2007. Financial institutions increased their 2013 year-to-date mean program income by 13.2%, as the banking industry consolidated and bank investment programs strengthened, said Michael Anderson, first vice president of Financial Institutions/Mergers & Acquisitions at Securities America, an independent broker-dealer and sponsor of the report.
According to the report, most community banks managed to grow their investment programs. Of the banks on track to earn at least $150,000 in revenue in 2013, 80% experienced growth relative to the first nine months of 2012, with 65.5% growing 10% or more.
CenterState Bank of Florida was the biggest producer of investment program fee income for the three quarters of 2013, generating $17.94 million, followed by North Shore Community Bank & Trust Company with $16.96 million and TIB The Independent Bankersbank with $6.17 million.
In annuity fee income, Victoria National Bank led the charge, producing $2.03 million, followed by CenterState Bank of Florida with $1.92 million and Bank Mutual with $1.61 million.
The report, titled Michael White Securities America Report: Community Bank Investment Programs, is based on data reported by all 6,891 commercial and savings banks and savings associations operating on Sept. 30, 2013.