The report on the 2016-2017 Regional & Community Bank Survey is Now Available

 

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 2016-2017 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 64 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 64 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 Source Bank

Georgia Bank & Trust

American National Bank of Texas

German American Bancorp

American Savings Bank

Gulf Coast Bank & Trust

Asheville Savings Bank

Iberia Financial Services, LLC

Astoria Bank

International Bank of Commerce

Auburn Bank

Kennebunk Savings Bank

BancorpSouth

Kentucky Bank

Bank Mutual

Legend Bank

Bank of North Carolina

Lone Star National Bank

Bank of Springfield

Midwestone Bank

Bank of St. Francisville

NBT Bank

Bremer Bank

New York Community Bank

Burke & Herbert Bank

Newtown Savings Bank

Cadence Bank

ONB Investments (Old National Bank)

Camden National Bank

Peoples Security Bank and Trust

Capital City Banc Investments

Popular Investments

Cashmere Valley

Regions Investment Services

Centennial Bank

Renasant Bank

Central Investment Advisors

Rockland Trust Company

Central Pacific Bank

S&B Financial Services

Citizens National Bank

Salem Five Financial

Community Savings Bank

South Central Bank

Community Trust Bank

South State Bank

F&M Investment Services

Southern Bank & Trust

Farmers Bank of Northern Missouri

Texas Community Bank

First Bank (NC)

Tompkins Trust Company

First Bank (FL)

TowneBank

First Midwest Bank

Trustmark National Bank

First PREMIER Investment Services

United Prairie Bank

Five Star Bank

Washington Trust Bank

First State Bank

Webster Investment Services

Fulton Financial Advisors

Zions Bank

 

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