NU Online News Service, Aug. 4, 2:36 p.m.EDT

Bank holding company first-quarter insurance brokerage incomedeclined by 5.7 percent to $3.03 billion, compared with last year'srecord $3.21 billion for the period, a consulting firmreported.

The numbers were contained in the Michael White-Prudential BankInsurance Fee Income Report, which noted the first quarter was a 15percent improvement when compared with the $2.63 billion brokerageincome figure for the 2008 fourth quarter, its lowest point since2005.

Wells Fargo & Co. was put in first place among 12 listedbank institutions with first-quarter year-to-date brokerage incomeat $483 million compared with $443 million for last year's fourthquarter.

The report said that so far this year, 59.9 percent of bankholding companies engaged in insurance brokerage activities.

Compiled by Radnor, Pa.-based Michael White Associates andsponsored this quarter by Prudential's Individual Life Insurancebusiness, the report's results are based on data from all 7,447commercial and FDIC-supervised savings banks and 940 large top-tierbank holding companies operating on March 31, 2008.

Bank holding company insurance brokerage fee income consists ofcommissions and fees earned by a bank holding company or itssubsidiary from insurance product sales and referrals of credit,life, health, property, casualty and title insurance.

The report said that among companies with significant bankingactivities Citigroup Inc. ranked second nationally with $250million in insurance brokerage fee income.

BB&T Corporation, which owns more agencies than any otherfinancial holding company, ranked third with $226.8 million ininsurance brokerage revenue in first-quarter 2009.

Bank holding companies with over $10 billion in assets continuedto have the highest participation at 90.8 percent in insurancebrokerage activities. These companies produced $2.82 billion ininsurance fee income in first-quarter 2009, 6.4 percent less thanthe $3.02 billion they produced in first-quarter 2008.

Large bank holding companies accounted for 93.2 percent of allbank holding company insurance brokerage fee income earned infirst-quarter 2009, according to the report.

Joan H. Cleveland, senior vice president, Business Developmentwith Prudential's Individual Life Insurance business, said, "Whilethe economy has had a negative impact on sales of insurance throughbanks, it's important to note that insurance brokerage income wasup substantially for first-quarter 2009 and not far off from recordhighs in the first and second quarters of 2008."

Among bank holding companies with between $1 billion and $10billion in assets, leaders in insurance brokerage income infirst-quarter 2009 included Eastern Bank Corporation (MA), OldNational Bancorp (IN), Trustmark Corporation (MS) and JohnsonFinancial Group Inc. (WI). Bank holding companies of this sizeregistered a 7.8 percent increase in insurance brokerage income to$167.7 million in first-quarter 2009, up from $155.5 million infirst-quarter 2008.

Among bank holding companies with assets between $500 millionand $1 billion, leaders were 473 Broadway Holding Corporation,Texas Independent Bancshares and First Manitowoc Bancorp Inc.

The smallest community banks, those with assets less than $500million, were used as "proxies" for the smallest bank holdingcompanies, which are not required to report insurance brokerageincome.

Leaders among bank proxies for small bank holding companies wereSoy Capital Bank and Trust Company (IL), Spirit of America NationalBank (OH) and Hoosac Bank (MA).

The issuers of the report said it did not include MetLife Inc.in the list of financial holding companies because it did notengage in significant banking activities.

Michael White Associates reports can be ordered by calling (610)254-0440, or online at www.BankInsurance.com.