Community bank investment programs produced growth in annuity commissions during the first half of 2011, according to a new report.
Michael White Associates LLC, Radnor, Pa., published this finding in a quarterly survey of 6,805 commercial banks and FDIC-regulated savings banks operating on June 30, 2011. Sponsored by Securities America, La Vista, Neb., the survey measures and benchmarks investment programs at community banks with less than $4 billion in assets.
Community banks earned annuity fee income of $64.4 million in first half 2011, up 12.5% from $57.2 million in first half 2010, the survey reports. Second quarter 2011 annuity revenues of $33.7 million were up 9.8% from $30.7 million in first quarter 2010 and up 13.4% from $29.7 million in second quarter 2010.
Annuity commissions constituted 26.9% of community bank investment program income of $239.6 million in first half 2011, up from 25.3% for the first half 2010, the report finds. In the second quarter 2011, annuity commissions accounted for 27.7% of the total, up from 25.6% in second quarter 2010.