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.
With trailer and advisory fees included, average gross sales commissions fell 9%, to $20,195.
Variable annuities accounted for 33% of small bank brokerage revenue, while mutual funds accounted for 24%.
The survey was sponsored by Invest Inc., Tampa, Fla., a broker-dealer affiliated with Jackson National Life Insurance Company, Lansing, Mich.