Small Bank Brokerage Income Soars

U.S. community banks and credit unions increased the average amount of brokerage revenue per $1 million in retail deposits to $393 in the third quarter, up 11% from the total for the third quarter of 2004.[@@]

The researchers at Kenneth Kehrer Associates, Princeton, N.J., who conducted the community bank and credit union survey found that financial institutions with more than $4 billion in assets produced an average $742 in brokerage revenue per $1 million in retail deposits during the third quarter. That figure was 89% higher than the total for smaller institutions.

Bank broker productivity fe11 11% at the institutions surveyed, with gross broker sales commissions dropping to $16,914 per month.