III - Banks

CONVERGENCE

BANK-PRODUCED INSURANCE PREMIUMS, 2000-2005 (1)

($ billions)

	2000	2001	2002	2003	2005	Percent change, 2000-2005
Annuities	$31.0	$37.1	$47.7	$51.6	$41.9	35.2%
Commercial lines (2)	5.4	8.9	11.5	14.2	24.3	350.0
Personal property/casualty	3.7	4.1	5.0	6.3	7.7	108.1
Credit insurance	2.7	2.8	2.5	2.4	2.1	-22.2
Individual life/health (3)	2.1	2.3	2.8	3.6	4.1	95.2
Total	$44.9	$55.2	$69.5	$78.1	$80.1	78.4%
Annual growth	23.4%	22.9%	25.9%	12.4%	2.6%	NA
(1) Estimated. Data not available for 2004. (2) Includes commercial property/casualty and group benefits premium. (3) Excludes accidental death and dismemberment. No adjustment is made for nonrecurring premiums. NA=Not applicable. Source: American Bankers Insurance Association.

BANK INSURANCE PREMIUMS BY TYPE OF COVERAGE, 2005 (1)

($ billions)

(1) Total estimated at $80.1 billion.
(2) Commercial property/casualty and group benefits premiums.
(3) Excludes accidental death and dismemberment. No adjustment is made for non-recurring premiums.

Source: American Bankers Insurance Association (ABIA).

In 2005 bank insurance premiums increased by 3 percent to an estimated $80.1 billion from $78.1 billion in 2003, according to the ABIA.
In 2005 banks accounted for almost a quarter of total annuity sales, 7 percent of commercial lines insurance sales, and 3 percent of personal lines insurance sales.

PRIMARY BANK INSURANCE DISTRIBUTION CHANNELS, 2005

(Percent)

	Property/casualty		Life/health
	Personal	Commercial	Individual	Group benefits	Annuities
Acquired agency	46.9%	49.5%	19.0%	39.5%	7.4%
Alliance with carrier	3.5	1.8	3.0	1.8	3.5
De novo agency (1)	12.4	9.9	13.5	13.2	9.9
Joint venture (2)	14.2	16.2	17.0	23.7	20.8
Alliance with third-party marketer	4.4	4.5	11.0	4.4	13.9
Licensed bank employees	15.9	13.5	33.0	13.2	42.1
Other	2.7	4.5	3.5	4.4	2.5
Total	100.0%	100.0%	100.0%	100.0%	100.0%
(1) Agency originated by the bank without acquisition of a platform agency. (2) Joint venture or marketing alliance with an insurance agency. Source: American Bankers Insurance Association.

BANK INDIVIDUAL LIFE INSURANCE SALES, 2003-2007

($ millions)

Source: Kehrer-LIMRA.

WEIGHTED BANK SALES OF INDIVIDUAL LIFE INSURANCE, 2003-2007 (1)

Year	Sales ($ millions)	Share of industry annualized premium
2003	$242	2.1%
2004	288	2.3
2005	274	2.2
2006	261	2.0
2006	226	1.6
(1) The weighted premium method of calculating annual sales volume emphasizes recurring premiums, i.e., policies with periodic payments. It deducts 90 percent of single premium sales, i.e., policies with one-time payments. Source: Kehrer-LIMRA.

Weighted bank sales of individual life insurance fell 13.4 percent in 2007.

BANK SHARE OF FIXED AND VARIABLE ANNUITY PREMIUMS, 1997-2006

($ billions)

	Fixed annuity premiums			Variable annuity premiums
Year	Total market	Banks	Bank share	Total market	Banks	Bank share
1997	$38.2	$10.0	26.2%	$87.9	$9.3	10.6%
1998	32.9	8.5	24.8	98.6	11.2	11.4
1999	42.1	12.5	30.0	114.4	13.9	12.2
2000	47.7	15.4	32.3	137.2	15.6	11.4
2001	68.3	27.4	40.1	111.0	10.9	9.8
2002	97.4	36.4	37.4	116.6	12.5	10.7
2003	83.4	32.0	38.4	129.4	18.1	14.0
2004	81.9	30.3	37.0	132.9	18.0	13.5
2005	73.6	21.8	29.6	136.9	17.7	12.9
2006	69.8	20.1	28.8	160.6	21.6	13.4
Source: Kehrer-LIMRA.

BANK SALES OF RETAIL MUTUAL FUNDS, 2002-2006 (1)

($ billions)

(1) Estimated.

Source: Kehrer-LIMRA.

Bank sales of retail mutual funds totaled $44.1 billion in 2006. This marks a 20.8 percent increase from the previous year but a 4.8 percent drop from 1998, when sales reached a record $46.3 billion.

BANK INSURANCE/INVESTMENT FEE INCOME

BANK INSURANCE BROKERAGE, UNDERWRITING AND TOTAL INSURANCE FEE INCOME, 2003-2007

	Insurance brokerage fee income (1)
	Reporting insurance brokerage fee income
Year	Number	Percent	Insurance brokerage fee income ($ billions)	Mean insurance brokerage fee income	Median insurance brokerage fee income
2003	3,938	47.7%	$2.97	$754,099	$19,000
2004	3,879	48.0	3.63	935,263	20,000
2005	3,802	47.7	3.93	1,033,970	19,000
2006	3,648	46.5	4.08	1,117,370	20,000
2007	3,519	45.7	4.04	1,149,359	18,000

	Insurance underwriting fee income (2)
	Reporting insurance underwriting fee income
Year	Number	Percent	Insurance underwriting fee income ($ millions)	Mean insurance underwriting fee income	Median insurance underwriting fee income
2003	334	4.0%	$628.5	$1,881,695	$12,000
2004	289	3.6	697.1	2,412,173	9,000
2005	242	3.0	653.2	2,699,335	8,000
2006	227	2.9	354.8	1,563,141	6,000
2007	247	3.2	414.9	1,679,781	8,000

	Total insurance fee income
	Reporting insurance fee income
Year	Number	Percent	Total insurance fee income ($ billions)	Mean total insurance fee income	Median total insurance fee income
2003	4,140	50.2%	$3.60	$869,113	$19,000
2004	4,042	50.0	4.33	1,070,016	19,000
2005	3,926	49.3	4.58	1,167,700	18,000
2006	3,774	48.2	4.43	1,174,085	19,000
2007	3,625	47.0	4.46	1,230,207	18,000
(1) Income from nonunderwriting activities, mostly from insurance product sales and referrals, service charges and commissions, and fees earned from insurance and annuity sales. (2) Income from underwriting activities. Source: Michael White-Symetra Bank Fee Income Report - 2008.

BANK INVESTMENT FEE INCOME, 2003-2007 (1)

	Reporting investment fee income
Year	Number	Percent	Investment fee income ($ billions)	Mean investment fee income	Median investment fee income
2003	2,331	28.2%	$10.16	$4,357,725	$61,000
2004	2,304	28.5	9.79	4,249,146	68,000
2005	2,245	28.2	9.97	4,440,339	77,000
2006	2,228	28.4	11.97	5,370,943	85,000
2007	2,216	28.8	14.21	6,412,762	110,000
(1) Income from investment banking, advisory, brokerage and underwriting fees and commissions. Source: Michael White-Symetra Bank Fee Income Report - 2008.

From 2001 to 2006, banks bought an average of 54 securities firms each year. (See Chapter 7: Mergers and Acquisitions of U.S. Securities Firms.)

BANK INVESTMENT BANKING, ADVISORY AND UNDERWRITING INCOME, 2007

	Reporting investment banking, advisory and underwriting income
Year	Number	Percent	Investment banking, advisory and underwriting income ($ billions)	Mean investment banking, advisory and underwriting income	Median investment banking, advisory and underwriting income
2007	717	9.3%	$6.42	$8,956,393	$63,000
Source: Michael White-Symetra Bank Fee Income Report - 2008.

BANK SECURITIES BROKERAGE INCOME, 2007

	Reporting securities brokerage income
Year	Number	Percent	Securities brokerage income ($ billions)	Mean securities brokerage income	Median securities brokerage income
2007	1,624	21.1%	$6.85	$4,217,010	$90,500
Source: Michael White-Symetra Bank Fee Income Report - 2008.

BANK ANNUITY COMMISSIONS, 2007

	Reporting annuity commissions
Year	Number	Percent	Annuity commissions ($ billions)	Mean annuity commissions	Median annuity commissions
2007	1,074	13.9%	$940.50	$875,718	$63,000
Source: Michael White-Symetra Bank Fee Income Report - 2008.

BANK MUTUAL FUND AND ANNUITY INCOME, 2003-2007

	Reporting mutual fund and annuity income
Year	Number	Percent	Mutual fund and annuity income ($ billions)	Mean mutual fund and annuity income	Median mutual fund and annuity income
2003	2,105	25.5%	$5.53	$2,626,858	$65,000
2004	2,067	25.6	5.62	2,718,866	77,000
2005	1,958	24.6	5.02	2,564,926	87,000
2006	1,902	24.3	5.38	2,830,081	97,000
2007	1,841	23.9	5.80	3,152,999	112,000
Source: Michael White-Symetra Bank Fee Income Report - 2008.

BANK PURCHASES OF INSURANCE AGENCIES,
2003-2006 (1)

	2003	2004	2005	2006
Number of deals	66	61	43	61
Deal value (2) ($ millions)	$612.9	$113.4	$212.3	$33.5
(1) Does not include terminated deals. (2) At announcement. Source: SNL Financial LC.

The number of bank/agency deals rose 42 percent from 2005 to 2006, but the value of those deals decreased by 84 percent.

LEADING BANKS

TOP TEN BANKS IN TOTAL INSURANCE FEE INCOME, 2007

($000)

			Insurance fee income
Rank	Bank	State	2006	2007	Percent change	Percent of noninterest income, 2007	2007 Assets
1	Citibank, N.A.	NV	$974,000	$1,185,000	21.66%	10.74%	$1,251,715,000
2	Branch Banking and Trust Company	NC	804,207	840,380	4.50	34.44	127,698,351
3	FIA Card Services, N.A.	DE	190,069	256,643	35.03	2.77	161,691,777
4	Bank of America, N.A.	NC	225,935	220,679	-2.33	1.18	1,312,794,218
5	JPMorgan Chase Bank, N.A.	OH	81,000	97,000	19.75	0.31	1,318,888,000
6	Wells Fargo Bank, N.A.	SD	90,000	94,000	4.44	0.67	467,861,000
7	Commerce Bank/North	NJ	83,084	84,624	1.85	57.19	4,856,937
8	BancorpSouth Bank	MS	68,804	71,616	4.09	31.40	13,192,320
9	National City Bank	OH	59,537	71,607	20.27	3.25	138,755,343
10	Union Bank of California, N.A.	CA	73,234	70,509	-3.72	8.65	55,156,870
Source: Michael White-Symetra Bank Fee Income Report - 2008.

TOP TEN BANKS IN INSURANCE UNDERWRITING INCOME, 2007

($000)

			Insurance underwriting income
Rank	Bank	State	Total	Percent of total insurance income	Percent of noninterest income, 2007	2007 Assets
1	JPMorgan Chase Bank, N.A.	OH	$94,000	96.91%	0.30%	$1,318,888,000
2	Wells Fargo Bank, N.A.	SD	92,000	97.87	0.66	467,861,000
3	Bank of America, N.A.	NC	43,901	19.89	0.24	1,312,794,218
4	SunTrust Bank	GA	37,698	94.84	1.28	175,107,526
5	Wells Fargo Financial Bank	SD	32,083	100.00	34.40	5,716,486
6	U.S. Bank, N.A.	OH	23,865	97.55	0.36	232,759,503
7	Wachovia Bank, N.A.	NC	21,000	61.76	0.23	653,269,000
8	HSBC Bank USA, N.A.	DE	11,781	38.98	0.74	184,491,526
9	First Tennessee Bank, N.A.	TN	9,052	22.41	1.10	36,725,591
10	Fifth Third Bank	OH	8,021	40.13	0.36	61,462,778
Source: Michael White-Symetra Bank Fee Income Report - 2008.

TOP TEN BANKS IN INSURANCE BROKERAGE FEE INCOME, 2007

($000)

			Insurance brokerage fee income
Rank	Bank	State	2006	2007	Percent change	Percent of noninterest income, 2007	2007 Assets
1	Citibank, N.A.	NV	$973,000	$1,185,000	21.79%	10.74%	$1,251,715,000
2	Branch Banking and Trust Company	NC	799,385	836,932	4.70	34.30	127,698,351
3	FIA Card Services, N.A.	DE	190,069	256,643	35.03	2.77	161,691,777
4	Bank of America, N.A.	NC	186,127	176,778	-5.02	0.95	1,312,794,218
5	Commerce Bank/North	NJ	83,084	84,624	1.85	57.19	4,856,937
6	National City Bank	OH	59,537	71,607	20.27	3.25	138,755,343
7	BancorpSouth Bank	MS	68,555	71,560	4.38	31.37	13,192,320
8	Union Bank of California, N.A.	CA	73,234	70,509	-3.72	8.65	55,156,870
9	TD BankNorth, N.A.	ME	56,102	56,040	-0.11	12.04	45,485,973
10	Associated Bank, N.A.	WI	53,543	41,765	-22.00	14.66	21,335,735
(1) Income from nonunderwriting activities, insurance product sales and referrals, service charges and commissions, and fees earned from insurance and annuity sales. Source: Michael White-Symetra Bank Fee Income Report - 2008.

TOP TEN BANKS IN INVESTMENT FEE INCOME, 2007 (1)

($000)

			Investment fee income
Rank	Bank	State	2006	2007	Percent change	Percent of noninterest income, 2007	2007 Assets
1	JPMorgan Chase Bank, N.A.	OH	$4,609,000	$5,546,000	20.33%	17.52%	$1,318,888,000
2	Bank of America, N.A.	NC	2,913,251	3,442,038	18.15	18.44	1,312,794,218
3	Wachovia Bank, N.A.	NC	540,000	582,000	7.78	6.48	653,269,000
4	Wells Fargo Bank, N.A.	SD	427,000	460,000	7.73	3.28	467,861,000
5	PNC Bank, N.A.	PA	239,621	291,334	21.58	13.18	124,782,289
6	Fifth Third Bank	OH	158,021	228,072	44.33	10.29	61,462,778
7	The Bank of New York	NY	395,000	214,000	-45.82	4.58	115,672,000
8	Citibank, N.A.	NV	0	213,000	NA	1.93	1,251,715,000
9	U.S. Bank N.A.	OH	171,697	194,814	13.46	2.91	232,759,503
10	Keybank N.A.	OH	108,047	179,373	66.01	10.00	95,861,810
(1) Income from broker-dealer activities such as investment banking, advisory and underwriting; securities brokerage; and annuity commissions. NA= Not applicable. Source: Michael White-Symetra Bank Fee Income Report - 2008.

TOP TEN BANKS IN INVESTMENT BANKING, ADVISORY AND
UNDERWRITING INCOME, 2007 (1)

($000)

			Investment banking, advisory and underwriting income
Rank	Bank	State	2007	Percent of noninterest income, 2007	2007 Assets
1	JPMorgan Chase Bank, N.A.	OH	$3,700,000	11.69%	$1,318,888,000
2	Wachovia Bank, N.A.	NC	566,000	6.30	653,269,000
3	Bank of America, N.A.	NC	403,394	2.16	1,312,794,218
4	U.S. Bank, N.A.	OH	194,814	2.91	232,759,503
5	PNC Bank, N.A.	PA	156,364	7.07	124,782,289
6	Deutsche Bank Trust Company Americas	NY	145,000	8.98	35,425,000
7	Fifth Third Bank	OH	127,033	5.73	61,462,778
8	Keybank, N.A.	OH	119,114	6.64	95,861,810
9	Capital One, N.A.	VA	111,296	9.33	97,517,902
10	Wells Fargo Bank, N.A.	SD	92,000	0.66	467,861,000
(1) Data not compiled prior to 2007. Source: Michael White-Symetra Bank Fee Income Report - 2008.

TOP TEN BANKS IN SECURITIES BROKERAGE INCOME, 2007 (1)

($000)

			Securities brokerage income
Rank	Bank	State	2007	Percent of noninterest income, 2007	2007 Assets
1	Bank of America, N.A.	NC	$2,917,015	15.62%	$1,312,794,218
2	JPMorgan Chase Bank, N.A.	OH	1,846,000	5.83	1,318,888,000
3	Wells Fargo Bank, N.A.	SD	368,000	2.62	467,861,000
4	The Bank of New York	NY	206,000	4.41	115,672,000
5	PNC Bank, N.A.	PA	92,309	4.18	124,782,289
6	Chase Bank USA, N.A.	DE	83,880	1.42	77,748,330
7	Citibank, N.A.	NV	80,000	0.72	1,251,715,000
8	Mellon Bank, N.A.	PA	71,018	6.32	39,674,139
9	First Tennessee Bank, N.A.	TN	64,034	7.77	36,725,591
10	Fifth Third Bank	OH	58,703	2.65	61,462,778
(1) Data not compiled prior to 2007. Source: Michael White-Symetra Bank Fee Income Report - 2008.

TOP TEN BANKS IN ANNUITY COMMISSIONS, 2007 (1)

($000)

			Annuity commissions
Rank	Bank	State	2007	Percent of noninterest income, 2007	2007 Assets
1	Bank of America, N.A.	NC	$121,629	0.65%	$1,312,794,218
2	Citibank, N.A.	NV	106,000	0.96	1,251,715,000
3	PNC Bank, N.A.	PA	42,661	1.93	124,782,289
4	Fifth Third Bank	OH	42,336	1.91	61,462,778
5	Branch Banking and Trust Company	NC	41,859	1.72	127,698,351
6	Keybank, N.A.	OH	41,783	2.33	95,861,810
7	National City Bank	OH	38,111	1.73	138,755,343
8	Bank of the West	CA	37,825	6.64	61,829,845
9	Manufacturers and Traders Trust Co.	NY	33,753	3.44	64,072,546
10	RBS Citizens, N.A.	RI	28,295	1.99	128,863,082
(1) Data not compiled prior to 2007. Source: Michael White-Symetra Bank Fee Income Report - 2008.

TOP TEN BANKS IN MUTUAL FUND AND ANNUITY INCOME, 2007

($000)

			Mutual fund and annuity income
Rank	Bank	State	2006	2007	Percent change	Percent of noninterest income, 2007	2007 Assets
1	Bank of America, N.A.	NC	$1,786,783	$2,107,472	17.95%	11.29%	$1,312,794,218
2	Wachovia Bank, N.A.	NC	581,000	618,000	6.37	6.88	653,269,000
3	JPMorgan Chase Bank, N.A.	OH	526,000	428,000	-18.63	1.35	1,318,888,000
4	Wells Fargo Bank, N.A.	SD	364,000	366,000	0.55	2.61	467,861,000
5	U.S. Bank, N.A.	OH	171,697	194,814	13.46	2.91	232,759,503
6	PNC Bank, N.A.	PA	111,341	153,032	37.44	6.92	124,782,289
7	The Bank of New York	NY	245,000	153,000	-37.55	3.28	115,672,000
8	Fifth Third Bank	OH	143,160	143,794	0.44	6.49	61,462,778
9	Keybank, N.A.	OH	96,034	104,004	8.30	5.80	95,861,810
10	Chase Bank USA, N.A.	DE	20,349	85,307	319.22	1.45	77,748,330
Source: Michael White-Symetra Bank Fee Income Report - 2008.

TOP TEN BANKS IN PROPRIETARY MUTUAL FUND AND ANNUITIES
ASSETS UNDER MANAGEMENT, 2007

($000)