|
AUGUST
23 -29, 2010
EAGLE BANK AND THE
MELTZER GROUP PEN INSURANCE REFERRAL DEAL
Bethesda, MD-based, $1.8 billion-asset EagleBank subsidiary Eagle
Insurance Services has entered into an insurance referral agreement with
The Meltzer Group, whereby the Bethesda-based subsidiary of National
Financial Partners will offer Eagle Bank customers group benefits and
individual life, property, casualty and liability insurance products.
The Meltzer Group CEO Alan Meltzer said, “Our new agreement
with EagleBank further strengthens our longstanding relationship.”
U.S. BANCORP’S TRUST UNIT TO ACQUIRE FNB’S BOND
& TRANSFER AGENT BUSINESS
Minneapolis, MN-based, $283 billion-asset U.S. Bancorp subsidiary U.S.
Bank N.A. has agreed to acquire the bond and transfer agent business of
First National Trust Company, a subsidiary of First National Bank of
Pennsylvania, a unit of Hermitage, PA-based, $8.8 billion-asset F.N.B.
Corp. U.S. Bank Corporate
Trust Services (USBCTS) President Bryan Calder said, “The acquisition
complements the existing U.S. Bank corporate trust business and will
strengthen our competitive position as a leading national trustee for
new municipal issuances.” USBCTS
currently services Pennsylvania through its offices in Pittsburgh and
Philadelphia. When the acquisition is completed pending regulatory
approval, USBCTS will have $2.9 trillion in assets under administration.
INDEXED ANNUITY & LIFE INSURANCE SALES NEARING
RECORDS
Indexed annuity sales in the second quarter reached $8.3 billion, just
0.1% short of the record sold in second quarter 2009, according to
Pleasant Hill, IA-based AnnuitySpecs.com.
Minneapolis, MN-based Allianz Life remained the number one
indexed annuity provider with a 19% market share, followed by Des
Moines, IA-based Aviva, Des Moines, IA-based American Equity, Radnor,
PA-based Lincoln National and Chicago-based North American Company for
Life and Health Insruance, respectively.
Annuity Specs President and CEO Sheryl Moore credited the robust
sales to the fact that “CD rates are at 1% and fixed annuities [are]
crediting a mere 3.65% on average.”
Indexed
life insurance sales showed continued growth, jumping 25% to $165.8
million, up from $132.6 million in second quarter 2009.
Aviva with an 18% market share remained the number one provider
of this product, followed by Newport Beach, CA-based Pacific Life,
Horsham, PA-based Penn Mutual, Cedar Rapids, IA-based AEGON Companies
and St. Paul, MN-based Minnesota Life, respectively.
Moore said, “Indexed life is finally transitioning from a niche
product to mainstream insurance.”
The average premium for each indexed life product sold in the
second quarter totaled $7,036, according to AnnuitySpecs.com.
BB&T INSURANCE SERVICES LAUNCHES ONLINE AUTO
QUOTES
Raleigh, NC-based BB&T Insurance Services, a subsidiary of Branch
Banking & Trust, a unit of Winston-Salem, NC-based, $155.1
billion-asset BB&T Corp., has launched Insurewithbbt.com, an online
personal auto insurance quoting system that offers personal auto
insurance products underwritten by The Hartford, Travelers and Safeco.
The move fits with the 21% jump in online auto insurance quote
shopping last year, when 38.8 million consumers shopped for policies and
a record 2.8 million purchased their auto insurance policies online, BestWire
reports.
FINRA DROPS INDEXED ANNUITIES FROM SUITABILITY RULES
The Financial Industry Regulatory Authority (FINRA) has published its
proposed Rule 2090 (Know Your Customer) and proposed Rule 2111
(Suitability) in the Federal Register.
Significantly, neither rule includes references to indexed
annuity products, which have been defined by Dodd-Frank as insurance
products to be regulated by insurance regulators.
To
read FINRA Rule 2090 and FINRA Rule 2111, click here.
FINRA FINES HSBC SECURITIES (USA) OVER UNSUITABLE
CMO SALES
The Financial Industry Regulatory Authority (FINRA) has fined HSBC
Securities (USA), a unit of London, England-based, $2.42 trillion-asset
HSBC Corp., $375,000. FINRA
found that HSBC Securities (USA) recommended unsuitable sales of inverse
floating rate Collateralized Mortgage Obligations (CMOs) to retail
customers, failed to adequately supervise the suitability of CMO sales,
and failed to fully explain to retail customers the risks that inverse
floating rates pose. FINRA
noted that since 1993 securities firms have been advised that “inverse
floating rate CMOs are only suitable for sophisticated investors with a
high-risk profile.” FINRA
Executive Vice President James Shorris said, “Firms must adequately
train their brokers on all the products that they are selling and must
reasonably supervise them to ensure that every security recommended is
suitable for the particular customer.”
Because HSBC Securities sold unsuitable CMOs to retail customers,
it has repaid customers who lost money in these unsuitable investments a
total of $320,000.
FINRA FINES MERRILL FOR UIT FAILURES
The Financial Industry Regulatory Authority (FINRA) has fined Merrill
Lynch, a subsidiary of Charlotte, NC-based, $2.37 trillion-asset Bank of
America Corp., $500,000 for failing to give customers sales charge
discounts on eligible Unit Investment Trusts (UIT) purchases and for
failing to have an adequate supervisory system in place to ensure that
customers received those discounts.
In addition to paying the fine, Merrill Lynch agreed to repay a
total of $2 million to UIT customers that were overcharged between
October 2006 and the present. FINRA
Executive Vice President James Shorris said, “Firms have been on
notice since at least 2004 that they must implement procedures to ensure
customers receive appropriate sales charge discounts for UIT
investments.”
MERRILL AGREES TO PAY UP AND REMEDY AGENT
REGISTRATION ISSUES IN NEW JERSEY
New York City-based Merrill Lynch, a subsidiary of Charlotte, NC-based,
$2.37 trillion-asset Bank of America Corp., has agreed to pay New Jersey
$728,260 in fines and implement a system to make sure that all its
Client Associates (CAs) doing business in New Jersey are registered
agents in New Jersey. The
agreement is a result of an Administrative Consent Order between Merrill
Lynch and New Jersey’s Bureau of Securities issued on August 10, 2010.
The New
Jersey Bureau of Securities found that from 2004 through the present
Merrill Lynch failed to enforce its own written supervisory procedures
to such an extent that approximately 700 of its client associates who
accepted client securities orders in New Jersey were not registered
agents in that state. New
Jersey Bureau of Securities Chief Marc Minor said, “Investors deserve
and expect that their trading is being conduct by registered agents.”
In
addition to the New Jersey settlement, Merrill Lynch agreed to pay up to
$25.83 million in fines and penalties to be appropriately divided among
the other 49 states, the District of Columbia, Puerto Rico and the U.S.
Virgin Islands that were part of the multi-state working group affected
by Merrill Lynch’s oversight failures.
As a result of the New Jersey investigation into Merrill Lynch’s practices,
the company conducted its own review and found that as of June 30, 2008,
60%, or 2,200 of its 3,780 registered CAs, were registered only in their
home state or one additional state.
In October 2008, Merrill Lynch amended its registration policy to
require that each Client Associate have the same state registrations as
the financial advisors they support.
For
further information and to read the Consent Order, click here.
CHINA CONSORTIUM WANTS 30% OF AIA
A consortium including Industrial and Commercial Bank of China, China
Life Insurance Co., Cinda Asset Management Co., Fosun Group, Hony
Capital and Alibaba.com reportedly plans to bid for a 30% stake in Hong
Kong-based American International Assurance (AIA), a subsidiary of New
York City-based American International Group (AIG).
AIG intends to list AIA on the Hong Kong stock exchange later
this year in an attempt to raise money for the unit, which AIG had hoped
to sell to London-based Prudential plc for $35.5 billion in a deal that
collapsed. If the newly
formed consortium cannot acquire 30% of AIA prior to the initial public
offering (IPO) on the Hong Kong exchange, it will not buy into the IPO, insurancejournal.com
reports.
REGULATORS PROHIBIT TYING ANNUITIES AND
INAPPROPRIATE INSURANCE TO REVERSE MORTGAGES
The Office of the Comptroller of the Currency (OCC), Board of Governors
of the Federal Reserve System (FRB), Federal Deposit Insurance
Corporation (FDIC), Office of Thrift Supervision (OTS) and National
Credit Union Administration (NCUA) have issued Final Compliance and Risk
Guidance on Reverse Mortgage Products.
Among the guidance is the prohibition against reverse mortgages
being conditional on the purchase of any other financial product from
the lender. Specifically,
the guidance states: “an institution may risk violations, depending on
the specific law that applies, if it requires consumers to obtain
annuity products – or any other product that is not a traditional
banking product – in order to obtain a reverse mortgage.” In addition, financial institutions must have policies and
procedures in place “to ensure that neither lenders nor brokers
require the borrower to obtain any insurance, annuity or similar product
(other than appropriate title, flood or other hazard insurance).” The final guidance takes effect on October 18, 2010.
To
read the Final Guidance on Reverse Mortgages, click here.
AUGUST
16 -22, 2010
U.S. BHCs EARN
RECORD INSURANCE BROKERAGE INCOME IN FIRST QUARTER
Insurance brokerage fee income generated by U.S. bank holding companies
(BHCs) in the first quarter grew 9.6% to a record $3.32 billion, up from
$3.03 billion in first quarter 2009, when groups like Morgan Stanley and
Goldman Sachs acquired BHC status.
Over 60% of U.S. BHCs sold insurance in the first quarter, led by
BHCs with over $10 billion in assets (90.8%), where insurance earnings
climbed 10.7% to $3.13 billion and accounted for 94.1% of all U.S. BHC
insurance brokerage income, according to the Michael
White-Prudential Bank Insurance Fee Income Report.
San
Francisco-based, $1.22 trillion-asset Wells Fargo & Co. retained its
position as the top BHC insurance earner, generating 9.94% growth in
insurance income to $531 million, enough to comprise 5.26% of the
company’s noninterest income. New
York City-based, $2 trillion-asset Citigroup came in a distant second,
as insurance brokerage income dipped 1.2% to $247 million.
Winston-Salem, NC-based, $163.7 billion-asset BB&T Corp.
ranked third, despite a 0.74% slip in insurance brokerage revenue to
$225.1 million, enough to contribute 31.6% of the company’s
noninterest income. Charlotte,
NC-based, $2.33 trillion-asset Bank of America Corp. ranked fourth, with
a 76% jump in insurance brokerage income to $140.3 million, and New York
City-based $819.7 billion-asset Morgan Stanley ranked a distant fifth,
registering a 385.7% surge in insurance brokerage earnings to $68
million.
Looking
at overall results, MWA President Michael White said, “Among the top
100 BHCs in insurance brokerage income, 38 showed positive growth, 6
were steady, and 7 registered small declines under 2%.
Not bad for a soft market.”
Prudential Individual Life Insurance Senior Vice President Joan
Cleveland noted, “People are making a point to re-evaluate their life
insurance needs. While the economy continues to be volatile, bank insurance
brokerage income has attained record highs for two successive
quarters.” To
read more about the first quarter findings, click here.
FDIC CREATES NEW
UNITS TO IMPLEMENT DODD-FRANK
The Federal Deposit Insurance Corporation (FDIC) has created an Office
of Complex Financial Institutions (CFI) and a Division of Depositor and
Consumer Protection (DCP) in order to implement the Dodd-Frank Wall
Street Reform and Consumer Protection Act.
The CFI will oversee bank holding companies with over $100
billion in assets and nonbank financial institutions deemed systemically
important by the Financial Stability Oversight Council.
Should any of these companies fail, the FDIC will oversee their
liquidations. The DCP will
ensure that banks comply with consumer protection and fair lending
statutes and regulations and enforce these requirements for banks with
$10 billion or fewer assets. FDIC
Chairman Sheila Bair said, “The FDIC plans to vigorously implement its
new authorities under the Dodd-Frank Act.”
FINRA WANTS
IMMEDIATE COMMENT ON PROPOSED EXPANDED REPORTING RULE
The Financial Industry Regulatory Authority (FINRA) has issued a
proposed rule that requires member firms to file expanded revenue and
expense information on a supplementary schedule attached to the
Statement of Income (Loss) page of the FOCUS Report Parts II and IIA.
In addition, firms with underwriting and/or sales revenue from
unregistered offerings that exceeds 10% of total revenue must complete
appropriate sections of a new Operational Page.
Comments on the proposed rule are due via email or regular mail
by August 18, 2010. To
read more about the proposed rule in Regulatory Notice 10-33, click here.
BROKERCHECK TO MAKE
CUSTOMER COMPLAINTS PUBLIC
The Financial Industry Regulatory Authority (FINRA) is reminding member
firms that changes to BrokerCheck take effect on August 23, 2010.
Beginning on this date, all historic customer complaints will
become publicly available on BrokerCheck, and firms will be able to
amend incorrect historic complaints using functional edit links.
In addition, FINRA’s process for disputing the accuracy of
information disclosed through BrokerCheck will be enhanced and codified.
For
more on Regulatory Notice 10-34, click here.
FINRA FINES AND
CENSURES MORGAN STANLEY FOR DISCLOSURE FAILURES
The Financial Industry Regulatory Authority (FINRA) has censured and
fined New York City-based, $809.5 billion-asset Morgan Stanley $800,000
for failing to make public required disclosures regarding research
analyst conflicts of interest and for failing to disclose the
availability of independent research in customer account statements.
According to FINRA, from April 2006 through June 2010 Morgan
Stanley issued 6,836 deficient disclosures and from August 2007 through
February 2008 failed to disclose the availability of independent
third-party market research in 127,600 monthly account statements.
In addition to the financial penalty, Morgan Stanley was ordered
to review research reports every six months for two years and certify
that they comply with FINRA’s research analyst conflict of interest
rules. Morgan Stanley
consented to an entry of FINRA’s findings, but neither admitted nor
denied the charges.
HUNTINGTON ASSET
SERVICES TO ADMINISTER NEW TEAM FUND
Indianapolis, Indiana-based Huntington Asset Services (HAS), a
subsidiary of Columbus, OH-based, $52 billion-asset Huntington
Bancshares, has added TEAM Asset Strategy Fund to its list of
administered mutual funds. TEAM
Financial Chief Investment Officer James Dailey said, “The opportunity
to work within Huntington Asset Services’ turnkey solution to bring
our first fund to market proved unbeatable.”
HAS will service the TEAM fund through Huntington Asset
Services’ Value Advisors Trust.
INSURANCE JOBS
SLIDE, AS WAGES CLIMB
Jobs in the insurance sector slid 3.2% to 2.18 million in July, down
from 2.25 million in July 2009, according to the U.S. Bureau of Labor
Statistics. In the first
half, claims adjusters saw the largest drop year-over-year, down 10% to
43,500. Title insurers came next with a 7.7% skid to 66,800, followed
closely by reinsurers, which posted a 7.6% decline to 25,500.
Third-party administrators recorded a 4.4% slide to 125,700;
property casualty insurers were down 3.7% to 464,000; agents and brokers
decreased by 3.1% to 630,800; life insurers slipped 1.8% to 345,000, and
jobs in the health insurance industry dipped 0.8% to 434,600.
Weekly
earnings reflected a different story, rising among all groups.
Workers in the property casualty industry earned on average
$1,028.13 per week, while life insurers earned $1,015.82. Health insurers ($978.32), title insurers ($929.96), and
claims adjusters ($924.30) followed in a cluster, trailed by agents and
brokers ($794.95) and third-party administrators ($760.92), BestWire
reports.
RBC SHOPS LIBERTY
LIFE
Toronto, Canada-based Royal Bank of Canada (RBC) is looking for a buyer
to purchase its Greenville, SC-based Liberty Life Insurance unit.
RBC paid $650 million to acquire the company about a decade ago, Bloomberg
reports.
AVIVA AND SANTANDER
EXPAND BANCASSURANCE PARTNERSHIP IN BRITAIN
London, England-based AVIVA and Santander, Spain-based Banco Santander
have entered into a bancassurance partnership whereby Santander will
offer AVIVA’s life and critical illness insurance products through the
bank’s 1,300 branches in Great Britain for the next five years
beginning in June 2011. Santander
already offers AVIVA’s general insurance products through its branch
network. AVIVA UK CEO Mark
Hodges said, “AVIVA has proven its ability to work closely with more
than 90 bancassurance partners throughout the world as part of its broad
multi-distribution strategy. Our
new deal with Santander demonstrates our ability to develop strong and
lasting partnerships across our UK business.”
BOC GIVEN GO AHEAD
TO OWN BOC INSURANCE
Beijing, China-based Bank of China (BOC) received approval from the
China Insurance Regulatory Commission to acquire 100% ownership of Bank
of China Insurance Company. The
deal will be accomplished through an internal equity stake transfer
whereby BOC affiliate Bank of China Insurance Group will transfer its
100% stake in BOC Insurance Company to BOC.
When the deal is completed, BOC Insurance will focus on the
growing China life insurance market, distributing its products in a
bancassurance partnership through BOC’s branches throughout China.
AIG STICKS WITH NAN
SHAN-CONSORTIUM DEAL; CHINATRUST REITERATES “SUPERIOR BID”
New York City-based American International Group (AIG) said it remains
committed to selling Nan Shan, its Taipei, Taiwan-based life insurance
unit, to the consortium led by Primus Financial Holdings and China
Strategic Holdings. Taipei-based
Chinatrust Financial Holdings, however, reiterated its desire to
purchase Nan Shan at a “superior bid” to the consortium’s.
Chinatrust Financial President Daniel Wu said such a transaction
“would be in the best interest of AIG, Nan Shan and U.S. taxpayers who
own 80% of AIG.”
ING’S SECOND
QUARTER INCOME SOARS ON BANK UNIT EARNINGS; EQUITIES HURT INSURANCE
RESULTS
Amsterdam, Netherlands-based ING Group reported second quarter net
income jumped fifteen-fold to €1.09 billion ($1.40 billion), up from
€71 million ($91.0 million) in second quarter 2009, driven by a
€1.61 billion ($206.2 billion) pretax profit earned by its banking
unit, which compensated for a €115 million ($147.3 million) pretax
loss reported by its insurance segment.
While insurance sales climbed 22.2% to €1.25 billion ($1.60
billion) in Japan and the U.S., sales dropped in Europe.
Rising U.S. sales, however, could not overcome “the sharp
decline” in U.S. equity markets which “severely impacted the results
of our U.S. insurance operations,” ING Group CEO Jan Hommen said.
Hommen added, “We continue to work towards the operational
separation of our banking and insurance operations, with the aim to have
the business operating on an arm’s-length, stand-alone basis by the
end of the year.”
AXA ASIA PACIFIC
AGREES TO SELL NORTHWEALTH.NET TO SWEETEN AXA/NAB DEAL
Melbourne, Australia-based IOOF Holdings has agreed to acquire
NorthWealth.net from Melbourne, Australia-based AXA Asia Pacific (AAPH)
Holdings. AAPH is willing
to divest itself of the Internet-based investment and pension services
platform in order to satisfy the Australian Competition and Consumer
Commission’s (ACCC) concerns that National Australia Bank’s (NAB)
proposed acquisition of AAPH and divestment of AAPH’s Asian operations
to AXA SA would “substantially lessen competition” among
Australia’s retail investment platforms.
North
Wealth has about A$1.4 billion ($1.29 billion) in funds under
administration. IOOF, which
offers superannuation, estate planning, corporate trust and wealth,
investment and asset management services, holds approximately A$101.7
billion ($91.3 billion) in funds under management and advisory
supervision. IOOF’s deal
for NorthWealth.net will close prior to NAB’s proposed acquisition of
AAPH, pending shareholder and regulatory approvals.
ACCC announced that it expects to make a final decision regarding
the proposed NAB/AXA merger, acquisition and divestment proposals by
September 9, 2010.
ANZ GROUP TO
REBRAND FUNDS AND LIFE INSURANCE BUSINESSES
Melbourne, Australia-based Australia and New Zealand Bank Group (ANZ
Group) will rebrand its specialist funds management and life insurance
business as OnePath in November, when its right to use the ING name
ends. ANZ Group acquired
total ownership of ING ANZ last year when it added ING’s 51% stake in
the bancassurance partnership to its 49% stake in the business, which
offers retail and wholesale investment funds and property trusts and
insurance products. ING Property Trust and ING Medical Properties will not adopt
the OnePath name, but will also be rebranded by November.
TRUST EARNINGS GROW
AT FIRST FINANCIAL BANCORP
Cincinnati, OH-based, $6.6 billion-asset First Financial Bancorp
reported the third quarter 2009 FDIC-assisted acquisitions of Peoples
Community Bank, Irwin Union Bank & Trust Co. and Irwin Union Bank
helped drive second quarter trust and wealth management fee income up
nearly 13% to $3.67 million from $3.25 million in second quarter 2009.
Trust and wealth management earnings comprised 14.5% of
noninterest income, which jumped 79.4% to $25.3 million, up from $14.1
million, reflecting accelerated discounts and settlements tied to the
FDIC-assisted acquisitions.
Net
interest income on a 4.51% net interest margin almost tripled to $61.33
million, up from $20.85 million in second quarter 2009, as loan loss
provisions dropped about 40% to $6.4 million and net interest earnings
before loan loss provisions more than doubled to $67.74 million,
reflecting acquisitions. Net
income surged nearly twelve-fold to $17.8 million, up from $1.5 million
in second quarter 2009. First
Financial President and CEO Claude Davis said, “We continued to
execute our client-focused business model with improvement in our wealth
management, mortgage and deposit businesses.”
INSURANCE, BOLI AND
TRUST INCOME UP AT FIRST COMMONWEALTH
Indiana, PA-based, $6.1 billion-asset First Commonwealth Financial
reported combined insurance and retail brokerage commissions in the
second quarter rose 6.3% to $1.87 million, up from $1.76 million in
second quarter 2009. Trust
income grew 21.7% to $1.4 million, up from $1.15 million, and income
from bank-owned life insurance (BOLI) climbed 26.2% to $1.3 million, up
from $1.03 million. Combined
insurance and retail brokerage earnings, trust fees and BOLI income
comprised, respectively, 14.8%, 11.1% and 10.3% of noninterest income,
which jumped 88.2% to $12.65 million, up from $6.72 million in second
quarter 2009, when the company recorded $8.76 million in net impairment
losses compared to $2.1 million in those losses recorded in the current
second quarter.
Net
interest income on a 3.88% net interest margin soared eightfold to
$51.23 million, up from $6.33 million in second quarter 2009, when First
Commonwealth set aside $48.25 million in loan loss provisions compared
to $4.01 million in the current quarter.
Combining these favorable results, the company reported net
income of $13.5 million compared to a net loss of $18.6 million in
second quarter 2009. First
Commonwealth President and CEO John Dolan said, “We have made
significant progress toward the resolution of a relatively small number
of troubled credits that have cause disproportionate earnings pressure
over the last three quarters during this unprecedented economic
period.”
In 2009,
First Commonwealth reported $3.2 million in insurance brokerage income,
which comprised 5.8% of its noninterest income and 1.2% of its net
operating revenue. The company ranked 51st in insurance brokerage
earnings among BHCs with assets between $1 billion and $10 billion,
according to the Michael
White-Prudential Bank Insurance Fee Income Report.
COMBINED BOLI,
WEALTH MANAGEMENT AND INSURANCE EARNINGS COMPRISE 43% OF NATIONAL
PENN’S NONINTEREST INCOME
Boyertown, PA-based, $9.2 billion-asset National Penn Bancshares
reported insurance commissions and fees in the second quarter slid 9.5%
to $3.64 million, down from $4.02 million in second quarter 2009, while
wealth management ($7.24 million) and bank-owned life insurance (BOLI)
income ($1.28 million) remained basically steady.
Insurance, wealth management and BOLI income comprised,
respectively, 12.8%, 25.4%, and 4.5% of noninterest income, which grew
33.8% to $28.5 million, up from $21.3 million a year ago, when the
company recorded $6.25 million in net losses from fair value exchanges
and $863,000 in net losses on investment securities sales.
Net
interest income on a 3.50% net interest margin jumped 85.1% to $43.64
million, up from $23.58 million, as loan loss provisions dropped by
$12.5 million to $25 million. But,
with an $8.3 million goodwill impairment charge tied to the pending sale
of the company’s Christiana Bank and Trust Company subsidiary and an
$8.1 million income tax expense accompanying a BOLI redemption, the
company recorded a $5.5 million net loss compared to second quarter net
income of $1.9 million in 2009. National Penn President and CEO Scott Fainor said “We
expect the Christiana and BOLI transactions to result in improved
capital ratios, increased holding company liquidity and increased future
earnings when completed.”
In 2009,
National Penn reported $16.1 million in insurance brokerage income,
which comprised 15.6% of its noninterest income and 4.5% of its net
operating revenue. The company ranked 7th in insurance brokerage
earnings among BHCs with assets between $1 billion and $10 billion,
according to the Michael
White-Prudential Bank Insurance Fee Income Report.
TRUSTMARK
REPORTS RISING WEALTH MANAGEMENT AND SLIDING INSURANCE EARNINGS
Jackson, MS-based, $9.2 billion-asset Trustmark Corp. reported insurance
brokerage fee income in the second quarter slid 6.6% to $6.88 million,
down from $7.37 million in second quarter 2009.
Wealth management earnings rose 1.1% to $5.56 million, up from
$5.5 million. Insurance and
wealth management income comprised, respectively, 15.3% and 12.4% of
noninterest income, which grew 10.1% to $44.95 million, up from $40.82
million, bolstered by a more than tripling of mortgage banking income to
$8.9 million.
Net
interest income on a 4.47% net interest margin climbed 27.2% to $81.47
million, up from $64.05 million, as loan loss provisions dropped over
61% to $10.4 million, down from $26.8 million, and net income almost
doubled to $26.16 million, up from $13.44 million in second quarter
2009. Trustmark Chairman
and CEO Richard Hickson said, “Trustmark’s financial results reflect
revenue growth across our banking, mortgage, insurance and wealth
management businesses.”
In 2009,
Trustmark Corp. reported $29.1 million in insurance brokerage income,
which comprised 18.9% of its noninterest income and 5.7% of its net
operating revenue. The company ranked third in insurance brokerage
earnings among U.S. bank holding companies with assets between $1
billion and $10 billion, according to the Michael
White-Prudential Bank Insurance Fee Income Report.
___
Michael White Associates (MWA) is pleased to provide
this
online Bank Insurance News in Brief. MWA also publishes BankInsurance.com
News, a compilation of
important industry news stories posted at www.BankInsurance.com.
Click
Here to request your FREE
BankInsurance.com Monthly News
by Email
|
