NON-INTEREST INCOME DIVERSIFICATION OPPORTUNITIES

FOR

COMMUNITY BANKS


(Purchase for $300 Per Copy)




DESCRIPTION OF STUDY:

BAC has recently completed a major study of diversification strategies for community banks.  This is an essential study for community bank CEOs seeking to inform themselves of activities and initiatives of how other institutions are dealing with margin compression (see below) through non-interest income diversification.


 

This is a research document of approximately 100 pages designed to provide CEO's of community banks with an overview of non-interest income diversification strategies of community banks and super community banks.  The study covers the following areas and bank sample sizes:

 

Size Cohort by Asset Size

# US Banks

# NE Banks

Areas Evaluated

<$500 Million in Assets

 

6,800

520

      Leasing

      Insurance sales

      Investment Management and/or Trust

      Other (Venture Capital / Investment Banking)

$>500 Million <$1 Billion

 

578

129

$>$1 Billion  <$10 Billion

452

104

Note:  Data is for commercial banks and thrifts; Federal Savings Banks have not been included in this sample

 

The study is assembled from public sources and covers the following topics:


l      Executive Summary of Community Bank performance &  Diversification

l      Performance of US and Northeastern Community Banks by Quartile:     12/31/06

l      Diversification Strategies of Northeastern Community Banks

 

l      LEASING:  Frequency and Bank Participants          

      Entry Issues for Banks Considering Leasing

      Industry Overview          

      Strategic  Reasons for Banks to Provide Leasing      

      Why Customers Are Attracted to Leasing    

      Bank Choices in Leasing 

      General Types of Leases   

      Accounting for Leases     

      Conceptual Pricing of Leases        

      Risks in Leasing

      Implementation Alternatives In Leasing       (Building vs Acquisition vs Joint Venture)

      Pro-Forma Financial Projections of De Novo Bank Leasing Department           

 

l      INSURANCE:  Frequency and Bank Participants     

      Entry Issues for Banks Considering Insurance          

      Industry Overview          

      Strategic  Reasons for Banks to Provide Insurance    

      Why Customers Are Attracted to Insurance  

      Bank Choices in Insurance

      General Types of Insurance           

      Accounting for Insurance Activities

      Conceptual Pricing of Insurance    

      Risks in Insurance          

      Implementation Alternatives In Insurance  (Building vs Acquisition vs Joint Venture)    

      Pro-Forma Financial Projections of De Novo Bank Insurance Department         

 

l      Investment Management / Trust:   Frequency and Bank Participants         

      Entry Issues for Banks Considering Investment Management / Trust    

      Industry Overview          

      Strategic  Reasons for Banks to Provide Investment Management / Trust          

      Why Customers Are Attracted to Investment Management / Trust       

      Bank Choices in Investment Management / Trust     

      General Types of Investment Management / Trust     

      Accounting for Investment Management / Trust Activities     

      Conceptual Pricing of Investment Management / Trust          

      Risks in Investment Management / Trust    

      Implementation Alternatives In Investment Management / Trust             (Building vs Acquisition vs Joint Venture)

      Pro-Forma Financial Projections of De Novo Bank Investment Management / Trust Department   

 

l      Other Diversification Strategies (Mtg. Servicing, Venture Capital, Investment

Banking)