Community banks earned annuity fee income of $29.7 million in the second quarter, down from $33.4 million in the same period a year earlier, according to Michael White Associates L.L.P. (MWA).
Annuity commissions totaled 25.6% of community banks’ investment program revenues in the first half, down from 32.6% in the first half of 2009.
In the first half as a whole, community banks’ fee income from annuities totaled $57.2 million, down almost 13% from $65.6 million in first half of 2009, reports MWA, Radnor, Pa. MWA defines community banks as those with assets of $4 billion or less.
MWA reports 1,458 community banks were earning income from investment programs, of which 813, or 56%, sold annuities. For 162 of these banks, annuities were the only investment product sold to customers.
The surveyed banks reported securities brokerage fee income in the second quarter of $86.5 million, up from $70.1 million in the second quarter of 2009. For the first half of this year, their securities brokerage fee income totaled $169 million, up almost 25% from $135.6 million for the first half of 2009, MWA reports.