2017-2018 Regional & Community Bank Survey (August 2018)

More bank customers are able to invest where they bank than ever before.  Over 1,600 regional and community banks are offering investment services in partnership with third party broker dealers. But how well are banks penetrating this opportunity? And what can banks do to improve the performance of their investment services units and better serve their clients?

 

The 2017-2018 Regional & Community Bank Survey, conducted by Kehrer Bielan Research & Consulting, answers these questions by drilling down to the performance of individual banks.  For this year’s survey, Kehrer Bielan obtained detailed data for 96 banks on the revenue, expenses, asset accumulation, advisor performance, and management of their investment services businesses. Click here for a complete list of survey participants. 

 

The study provides benchmarks for financial advisor coverage and productivity, product mix, asset accumulation, and referral penetration, as well as revenue and net income penetration of the bank's clients. 

 

We Are Offering Two Views Into Our Findings:


The Regional & Community Bank Dashboard provides a highly detailed overview of the investment services businesses in the 96 banks that participated in the survey. The dashboard describes the range of experience across 48 key metrics, including penetration of the institution’s opportunity, profitability and efficiency ratios, advisor productivity, asset growth, asset and product composition, and key management and expense metrics. Click here for a complete list of the survey metrics.

 

The Regional & Community Bank Study identifies the most important year-over-year trends in the data, including changes in business mix, production, and profitability; revenue penetration; advisor coverage; advisor productivity; and acquisition of new assets.

 

Survey Participants


1st Central State Bank

German American Bancorp

1st Source Bank

Gulf Coast Bank and Trust

Amegy Bank

Heartland Bank

American National Bank of Texas

Home Investment Survey

BancorpSouth

Iberia Bank

Bank Mutual

Independence Bank

Bank of Springfield

International Bank of Commerce

Bank of St. Francisville

Intrust Financial Services

Bank of Tampa

Kennebec Savings Bank

Bankplus Wealth Mgmt Group

Kentucky Bank

Banner Bank 

Klein Bank

Bell Bank

Landmark Investments

Burke & Herbert Bank

Lincoln Savings Bank

Cadence Bank

Lyons National Bank

California Bank and Trust

MidwestOne Investment Services

Camden National Bank

NBT Bank

Capital City Investments

Nevada State Bank

Cashmere Valley Bank

New York Community Bank

Centennial Bank

Northwest Bank

Central Investment Advisors

Old National Bank

Central Pacific Bank

Peoples Bank (WA)

Citizens and Farmers Bank

Peoples Security Bank & Trust

Citizens Business Bank

Pioneer Bank

Citizens National Bank

Popular Investments

Citizens National Bank of Bluffton
Quad City Bank & Trust
Columbia Bank
Regions Bank
Community National Bank
Renasant Bank
Community Resource Bank
Rockland Trust Company
Community Trust Bank
S&B Financial Services
CoreFirst Bank & Trust
S&T Bank
Equity Bank

Salem Five Financial

F&M Investment Services

Security National Bank

Farmers Bank of Northern Missouri

South State Bank

First American Bank

Southern Bank & Trust

First Bank 

Springs Valley Bank

First Bankers Trust Co.
Sterling National Bank
First Farmers and Merchants Bank
The Farmers & Mechanics Bank
First Federal Lakewood
The Fidelity Bank
First Interstate Bank

The Nodaway Valley Bank

First Midwest Bank

TNB Financial Services

First National Investment Services

Tompkins Trust Company

First PREMIER Investment Services

TowneBank

First Savings Bank

Trustmark National Bank

First United Bank & Trust

United Prairie Bank

Firstar Bank
Vectra Bank
Five Star Bank
Washington Trust Bank
Franklin Savings Bank
Webster Bank

Fulton Financial Advisors

Zions Bancorporation

 

Survey Metrics


Penetration Of The Opportunity

  • Deposit Revenue Penetration (gross revenue per million of institution's self-reported consumer deposits)
  • Deposit Revenue Penetration (gross revenue per million of institution's FDIC non government deposits)
  • Household Revenue Penetration (gross revenue per institution's retail household)
  • Year-over-Year Revenue Growth
  • Net Income Contribution Margin (net income before corporate G&A allocation as a percent of gross revenue)
  • Pre-tax Net Income Margin (net income after corporate G&A allocation as a percent of gross revenue)
  • Pre-tax Net Income Growth (after corporate G&A allocation)
  • Efficiency Ratio (direct and allocated expenses divided by revenue)
  • Efficiency Ratio Fully Loaded (including G&A allocation)
  • Deposit Profit Penetration (net income contribution per million of institution's self-reported consumer deposits)
  • Deposit Profit Penetration (net income contribution per million of institution's FDIC non government deposits)
  • Household Profit Penetration (net income contribution per institution's retail household)

 

Advisor Productivity

  • Gross Revenue per Advisor
  • Advisor-Produced Revenue per Advisor
  • Licensed Banker-Produced Revenue per Licensed Banker
  • Investment Assets per Advisor 
  • Transaction Revenue per Advisor
  • Advisory Revenue per Advisor
  • Trail Commissions per Advisor
  • Recurring Revenue per Advisor
  • Gross Revenue per FTE
  • Investment Assets per FTE

Management Metrics

  • Referrals from Institution Staff per Advisor
  • Deposit Referral Penetration (referrals per million in institution's FDIC non-government deposits)
  • Household Referral Penetration (referrals as a percent of institution's retail households)
  • Advisor Deposit Coverage (millions of institution's self-reported consumer deposits per FA)
  • Advisor Deposit Coverage (millions of institution's FDIC non government deposits per FA)
  • Advisor Household Territory (institution's retail households per FA)
  • Advisors per Sales Assistant
  • Percent of Advisors who are Associate (Jr) Brokers
  • Advisor Deposit Coverage

 

Asset And Product Composition

  • New Assets as a Percent of Total Assets
  • Managed Assets as a Percent of Total Assets
  • Share of New Assets that are Managed Assets
  • Transaction Revenue as a Percent of Total Revenue
  • Advisory Revenue as a Percent of Total Revenue
  • Trail Commissions as a Percent of Total Revenue
  • Recurring Revenue as a Percent of Total Revenue

 

Expense Profile

  • Effective Financial Advisor Payout Rate
  • Average Financial Advisor Compensation
  • Direct Expenses per Financial Advisor
  • Allocated Expenses per Financial Advisor
  • Total Expenses per Financial Advisor
  • Sales Force Comp as a Percentage of Total Revenue

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