Community Bank Brokerage Sales Rise

Excluding trailer and advisory fees, average gross sales commissions increased to $18,656 per month per community bank or credit union financial advisor, up 1% from the monthly average for the first quarter of 2004.

With trailer and advisory fees including, average gross sales commissions fell to $22,087 per month per advisor, from $22,700.

The drop was due largely to the turndown in the stock market during the first quarter of 2005, says Kenneth Kehrer, the head of the firm that bears his name.

Kenneth Kehrer Associates researchers note significant differences in the brokerage product menus at community institutions and larger banks:

Community banks are less likely to sell fixed annuities, general accounts and life insurance but much more likely to sell variable annuities and mutual funds, the researchers report.

Large bank brokerage operations also appear to be more profitable, largely because big banks make more use of "platform reps," who tend to receive relatively low sales incentives, Kehrer says.