Wells Fargo & Company said second-quarter insurance revenues rose 19 percent, crediting more business from current customers for the increase across all its business lines.
For the quarter, the San Francisco bank reported insurance income increased $68 million over the same period last year to $432 million. For the six months, revenues increased 14 percent over last year, or $103 million, to $831 million.
In a Securities and Exchange Commission filing, John Stumpf, president and chief executive officer, said, "We continue to earn more business from current customers and invest in future growth through internal investments and acquisitions."
Among the acquisitions he noted are plans to purchase Greater Bay Bancorp, based in East Palo Alto, Calif., home of the insurance brokerage firm ABD Insurance and Financial Services. Plans for the merger, announced in early May, call for the completion of the deal during the fourth quarter of this year.
Greater Bay Bancorp has over 1,800 employees and $7.4 billion in assets, according to a statement on the merger. Seven hundred employees work for ABD. The insurance broker has locations throughout the West Coast.
According to a recent report from Radnor, Pa.-based Michael White Associates Bank Insurance Consultants, the "Michael White-Symetra Bank Holding Company Fee Income Report," for the first quarter of this year Greater Bay Bancorp was ranked sixth nationally with $44 million in insurance brokerage revenue and Wells Fargo ranked second with $357 million.
According to Michael White's end-of-year report, in 2006 Wells Fargo reported bank income for the year of $1.07 billion, while Greater Bay Bancorp reported $165.5 million.
Combining interest and non-interest revenues for the second quarter, Wells Fargo reported an increase of 12 percent compared with the same period last year, or $1.4 billion, to $13.3 billion. Net income rose 9 percent, or $190 million, to $2.3 billion, or 67 cents a share.
For the six months revenues rose 12 percent, or $2.7 billion, to $25.8 billion. Net income rose 10 percent, or $416 million, to $4.5 billion, or $1.33 a share.
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