First-quarter fee income for bank-owned insurancebrokerage firms slipped more than 5 percent largely due to theincome drop at two major brokerage firms, Wells Fargo andCitigroup.

In the latest Michael White Bank Insurance Fee Income Report,bank holding companies recorded $1.72 billion in insurancebrokerage fees in Q1 of this year, down $90 million from the sameperiod in 2012.

During the period, revenues at Wells Fargo & Co., a P&Cbroker, dropped 10 percent to $407 million and Citigroup Inc., alife broker, fell 61 percent to $197 million. Wells Fargo andCitigroup are ranked No. 1 and No. 3, respectively, on the list oftop 12 bank-owned brokers.

Wells Fargo has attributed the drop in insurance income to lower commodity prices in its cropinsurance company and discontinuation of lender-placed insurancecommissions.

No. 2 on the list, BB&T Corp.—a mix of P&C and lifeinsurance business—saw its fees increase 37 percent to $335million. In fourth place is Bank of America Corp., which swung froma $67 million loss in Q1 2012 to $138 million.

Michael White, the bank consulting firm's president, says bankholding companies made real progress in insurance revenues in Q1.Of 256 banks that are on track to earn $250,000 in annualizedinsurance brokerage income, 168 showed positive growth.

The number of banks with double-digit increases in insurancebrokerage fees over the prior year rose from 94 in 2012 to 116 sofar this year. The results point to continued, meaningful growth ininsurance-fee revenues.