Commissions from annuities sold in community banks fell to about $28 million in the first quarter, down 14% from the total recorded in the first quarter of 2009.
Community bank annuity commissions fell as overall community bank investment program income increased 13%, according to Michael White Associates L.L.C. (MWA), Radnor, Pa.
The percentage of community bank investment program income coming from annuity commissions fell to 25%, down from 29% in the first quarter of 2009.
MWA analyzed investment program data from about 7,000 community banks. At MWA, a “community bank” is a bank with less than $4 billion in assets.
The number of community banks participating in investment program activities fell to 1,412 during the quarter, down 6% from the total in the first quarter of 2009. About 766 of the community banks with investment programs generated annuity commission income, and 157 said all of their investment income came from sales of annuities.