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Community Bank Investment Program Earnings and Bank-Owned Life Insurance Assets

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BANNER BANK PARTNERS WITH COLDSTREAM CAPITAL MANAGEMENT Walla Walla, WA-based, $4.39 billion- asset Banner Corporation subsidiary of all U.S. households say Banner Bank has agreed to partner with Bellevue, WA-based Coldstream Capital 1/2 they Management to offer comprehensive need more wealth management services to its high net worth clients. Banner Bank President and CEO Mark Grescovich said, life insurance . "Banner's high net worth clients who are referred to Coldstream will have a dedicated relationship management team who will proactively address the complicated issues that come with having wealth." He added, "We are confident our clients will feel well-served when they work with Banner and Coldstream." Coldstream specializes in 401k plan design, risk management and other financial advisory services and currently holds $1.4 billion in assets under advisement.

JPMORGAN, HSBC & WELLS FARGO SETTLE LENDER-PLACED INSURANCE CLAIMS New York City-based HSBC Holdings and San Francisco-based Wells Fargo & Co. have entered into separate agreements with their mortgage holders over insurance that the lenders placed on their property when the mortgage holders' own policies lapsed or were not sufficient to cover the values of the properties. HSBC has agreed to pay up to $32 Help them get the protection million to resolve claims of inflated lender- placed premiums and allegedly inappropriate commission kickbacks they want and need. between and insurers and reinsurers. The projected financial cost to Wells Fargo was not included in its settlement agreement. Both settlements were filed in the U.S. District Court, Southern District of Florida (Miami), where the JPMorgan Chase & Life Insurance. Quickly. Co. and Citigroup lender-placed class- action settlements were approved and Life Insurance . Simply. where Bank of America and its class- action plaintiffs filed their lender-placed Life Insurance. Professionally. settlement on February 18, insurancejournal.com reports. Life Insurance. Affordably. WELLS FARGO INSURANCE WINS Life Insurance. Reliably. TRADEMARK INFRINGEMENT CASE IN APPEALS COURT The U.S. District Court of Appeals has overturned the U.S. District Court of the Ŧ Northern District of ruling that VOLUME XV, ISSUE 4, APRIL 2014 PAGE 3 denied San Francisco-based Wells Fargo & Co. and Wells Fargo Insurance Services, USA's request for a preliminary injunction against ABD Insurance & et. al. (New ABD) for false affiliation and advertisement, unfair competition and infringement on Wells Fargo's ABD trademark, which it acquired when it purchased ABD Insurance and Financial Services (Former ABD) in 2007. The Appeals Court wrote that while Wells Fargo renamed the acquired agency Wells Fargo Insurance Services, it never abandoned the ABD trademark, but "continued to use the mark in several ways." Such uses, the Court said, "demonstrate Wells Fargo's business calculation that it could continue to benefit from the good will and mark recognition associated with ABD…. Thus, the district erred by concluding that Wells Fargo abandoned the ABD mark." The Appeals Court reversed the District Court's denial of the motion for preliminary injunction and remanded the case to that court for reconsideration and further proceedings. To read the opinion filed on March 3, 2014, click here.

SLOWDOWN IN COMMERCIAL RATE INCREASES U.S. composite commercial insurance rates in February were up 2% over rates in February 2012, but were down from the (+4%), while most industries including the FINRA DISCIPLINARY ACTIONS UP, 3% year over year increase recorded in manufacturing, contracting, service and BUT FINES DOWN IN 2013 January, according to Dallas, TX-based habitational industries experienced 3% The number of disciplinary actions filed MarketScout. rate increases. In contrast, rates for by the U.S. Financial Industry Regulatory Year over year February renewal rates public entities rose 2% and rates for Authority (FINRA) in 2013 slid 1% to by coverage class rose the highest for companies in the energy business inched 1,535, down from 1541 in 2012, while the business owners policies and commercial ahead 1%. dollar amount of the fines imposed fell auto insurance (+4%), followed by February renewal rates compared to 27% to $57 million, down from $78 commercial property and workers January renewal rates, however, million, and the amount ordered to be compensation (+3%); business indicated slippage. Umbrella, workers paid in restitution dropped 29% to just interruption, general liability, umbrella compensation and general liability short of $24 million, down from the record excess, professional liability, employment insurance renewals, and rates for small $34 million in 2013, according to practices liability insurance (EPLI) and and medium accounts, and renewal rates , DC-based Sutherland Asbill directors and officers liability (+2%); and for the manufacturing, contracting, & Brennan. inland marine, fiduciary, surety and crime service and energy industries all declined Additionally, while the number of firms insurance (+1%). 1% from January increases, MarketScout FINRA expelled in 2013 fell 20% to 24, Renewal rates by account size found based on pricing surveys down from 30 in 2012; the number of continued to increase the greatest for conducted by the National Alliance for individuals FINRA suspended climbed small accounts up to $25,000 (+3%), Insurance Education and Research. 22% to 670, and the number of while both medium accounts of $25,001 to Commenting on the slowing trend in individuals FINRA barred from the $250,000 and large accounts of $250,001 renewal rate increases, MarketScout industry jumped 46% to 429. to $1 million rose 2%, and jumbo CEO Richard Kerr said, "Absent a FINRA brought the greatest number of accounts over $1 million ticked up 1%. catastrophic event, we predict the U.S. enforcement actions in 2013 for faulty February renewal rates by industry commercial market will continue to trade reporting (198), inaccurate books class compared to a year ago were moderate, and rates will ultimately start to and records (95), suitability failures (73), highest for the transportation industry decrease towards the latter part of 2014. electronic communication failures (6), VOLUME XV, ISSUE 4, APRIL 2014 PAGE 4 faulty advertising (53), municipal securities failures (51) and inappropriate short selling (40). The number of actions brought per enforcement issue, however, did not correlate with the fines imposed. Electronic communication failures, especially those related to email retention, increased by only 5%, but the fines imposed spiked 132% to $15.1 million. Trade reporting cases increased 25%, but fines jumped 57% to $12.1 million. Short selling cases increased 5% but fines climbed 41% to $7.2 million. Banks and records cases grew 20%, while fines increased 13% to $7.1 million, and the number of municipal securities actions grew 21%, while fines imposed for municipal securities failures jumped 43% to $6 million. Looking forward to potential top enforcement actions in 2014, Sutherland Asbill & Brenan Associate Andrew McCormick said, "Firms need to focus on technology issues like email retention and surveillance, because FINRA has been concentrating on this issue."

IIS HONORS PEKING UNIVERSITY PROFESSOR QIXLANG SUN The International Insurance Society (IIS) announced that the IIS Honors Committee has selected Dr. Qixlang Sun as the winner of the 2014 John S. Bickley Founder's Award Gold Medal for Excellence. Dr. Sun serves as the Dean of the School of Economics and the C.V. Starr Chair Professor of Risk Management and Insurance at Peking University in Peking, China. Among other accomplishments, she is the author of scores of research articles and 20 books, including the best-selling textbook Principles of Insurance. IIS Honors Committee Chairman Bernhard Fink said, "Dr. Sun's work and leadership has influenced insurance thought and practice not only in China but around the world." He added, "She has contributed greatly to the reform and development of the insurance industry in China and has served as a major advisor and resource for policymakers." Dr. Sun will be honored at the IIS Awards Dinner on June 23, 2014, when the Society meets for its 50th annual seminar at the Park Plaza Westminster Bridge Hotel in London, England from June 22 through June 25. VOLUME XV, ISSUE 4, APRIL 2014 PAGE 5

STEADY INSURANCE EARNINGS REMAIN TOP NONINTEREST CONTRIBUTOR AT SUMMIT FINANCIAL Moorefield, WV-based, $1.39 billion-asset Summit Financial Group reported insurance brokerage fee income in 2013 remained the top contributor to noninterest earnings, despite staying flat at $4.43 million. Insurance revenue comprised 39.5% of noninterest income, which fell 13% to $11.21 million, down from $12.88 million in 2012, hit by an over $1.1 million drop in securities gains. Net interest income on a 3.22% net interest margin slipped 2.6% to $38.80 million, down from $39.82 million in 2012, reflecting a $6.60 million decline in interest income, which could not be covered by a $5.59 million cut in interest expense. Net interest income, after a $4 million drop in loan loss provisions to $4.5 million, grew 9.5% to $34.30 million, up from $31.32 million. Net income, after a $2.51 million cut in noninterest expense driven by a $3.14 million drop in write downs on foreclosed properties, climbed 41.2% to $8.07 million, up from $5.71 million in 2012. Net income available to common shareholders jumped 47.8% to $7.29 million, up from $4.94 million. management increased 9% to $7.27 Peters said, "The strong loan growth we Summit Financial President and CEO H. billion, up from $6.6 billion. In contrast, experienced in the second half of the year Charles Maddy III said, "Dispositions of income from bank-owned life insurance … along with our higher wealth revenues foreclosed properties remain challenging declined 16.4% to $358,000, down from provided solid core and repeatable – particularly with respect to commercial $428,000. Wealth management and BOLI earnings for the bank." and residential development property, … income comprised, respectively, 72.7% In 2012, Bryn Mawr Bank Corp.'s but we anticipate such charges in 2014 and 0.7% of noninterest income, which wealth management income comprised will approximate or be less than the rose 4.2% to $48.36 million, up from 63.1% of its noninterest income and amounts recorded in 2013." $46.39 million in 2012, driven by growing 23.9% of its net operating revenue. The In 2012, Summit Financial's insurance wealth management fee income, which company ranked 6th in wealth brokerage income comprised 40.1% of its more than compensated for a $2.62 management income among bank noninterest fee income and 10.3% of its million drop in sales and holding companies with assets between net operating revenue. The company no gain on the sale of investment $1 billion and $10 billion, according to the ranked 46th in insurance brokerage securities compared to a $1.42 million Michael White - IPI Bank Wealth earnings among BHCs with assets gain in 2012. Management Report . between $1 billion and $10 billion, Net interest income on a 3.98% net according to the Michael White Bank interest margin grew 12.7% to $72.99 ORRSTOWN FINANCIAL REPORTS Insurance Fee Income Report . million, up from $64.74 million in 2012, 10.4% GROWTH IN TIM INCOME reflecting a $5.09 million increase in Shippensburg, PA-based, $1.18 billion- CLIMBING interest income and a $3.16 million cut in asset Orrstown Financial Services WEALTH MANAGEMENT interest expense. Net interest income reported trust and investment EARNINGS DOMINATE 73% OF after a $428,000 decline in loan loss management (TIM) earnings generated BRYN MAWR BANK'S provisions to $3.58 million, grew 14.3% to by Orrstown Financial Advisors grew NONINTEREST INCOME $69.42 million, up from $60.73 million. 10.4% in 2013 to $6.68 million, up from Bryn Mawr, PA-based, $2.06 billion-asset Net income, despite a $5.84 million $6.05 million in 2012, and comprised Bryn Mawr Bank Corp., parent of The increase in noninterest expense largely 37.5% of noninterest income, which fell Bryn Mawr Bank and Trust, reported tied to salaries, benefits and occupancy 23.4% to $17.81 million, down from wealth management earnings in 2013 costs, rose 15.6% to a record $24.44 $23.26 million in 2012, when gains on grew 18.1% to $35.18 million, up from million, up from $21.15 million in 2012. sales of investment securities were $4.50 $29.80 million in 2012, as assets under Bryn Mawr Bank Chairman and CEO Ted million higher and service charges on VOLUME XV, ISSUE 4, APRIL 2014 PAGE 6 deposit accounts and mortgage banking income were greater. Net interest income on a 3.03% net interest margin fell 15.3% to $32.09 million, down from $37.89 million in 2012, reflecting an $8.34 million drop in interest revenue, which could not be covered by a $2.54 million cut in interest expense. Net interest income, after a $3.15 million recovery of loan loss provisions compared to a $48.30 million provision in 2012, measured $35.24 million and compared with a net interest loss of $10.41 million after loan loss provisions in 2012. Net income, after basically steady noninterest expense bolstered by a $1.62 million decline in collection and problem loan expenses, reached $10.0 million and compared with a net loss of $38.5 million in 2012. Orrstown Financial President and CEO Thomas Quinn said, "Our ability to address enterprise risk management issues … allowed for a renewed focus of the company in 2013 to develop new customer relationships, enter Lancaster County and make investments in technology which have strengthened our operating practices." In 2012, Orrstown Financial reported $1.54 million in securities brokerage income, which comprised 7.7% of its noninterest fee income and 2.5% of its In contrast, net interest income slipped U.S. INDEXED ANNUITY & LIFE net operating revenue. The company 1.3% to $34.88 million, down from $35.34 INSURANCE SALES HIT RECORD ranked 78th in securities brokerage million in 2012, bolstered by a $4.09 LEVELS IN 2013 earnings among BHCs with assets million (39%) cut in interest expense that U.S. indexed annuity sales reached a between $1 billion and $10 billion, almost covered a $4.55 million (10%) record $36.8 billion in 2013, up 13.4% according to the Michael White - decline in interest income. Net interest from $32.45 in 2012, according to Wink's Securities America Report: Community income after a slight 0.1% uptick in loan Sales and Market Report. Record fourth Bank Investment Programs . loss provisions to $27.78 million, declined quarter sales of $11.5 billion drove the 6.6% to $7.09 million, down from $7.59 increase, climbing 35% over fourth GROWING INSURANCE million. After a $1.1 million (2.9%) quarter 2012 sales and 15% over record BROKERAGE INCOME PROVIDES increase in noninterest expense to $39.0 third quarter 2013 sales. 61% OF NONINTEREST REVENUE million, Shore reported a net loss of $9.6 Bank and wirehouse indexed annuity AT SHORE BANCSHARES million, in line with the net loss of $9.6 sales played a role in the record Easton, MD-based, $1.1 billion-asset million in 2012. Shore Bancshares numbers, Wink found. Wink President Shore Bancshares reported insurance President and CEO Lloyd "Scott" Beatty and CEO Sheryl Moore said, "Indexed brokerage fee income generated by the said, "We are still focused on reducing annuities continue to gain more Avon-Dixon Agency, Elliot Wilson charge-offs and nonaccrual loans. acceptance in bank and wirehouse Insurance and Jack Martin and However, with a substantial portion of our distributions, as rates on traditional fixed Associates in 2013 grew 8.5% to $10.65 credit problems behind us, we can now money instruments remain low, and million, up from $9.81 million in 2012, turn our attention to revenue generation." consumers seek out the guarantees that while trust and investment management In 2012, Shore Bancshares' insurance are inherent in indexed annuities." (TIM) earnings generated by Wye brokerage income comprised 69.8% of its Alliance Life remained the top indexed Financial & Trust slipped 1.9% to $1.61 noninterest income and 19.8% of its net annuity provider, with its number one- million, down from $1.64 million. operating revenue. The company ranked selling Allianz 360 Annuity helping it claim Insurance brokerage earnings dominated 16th in insurance brokerage earnings 20.01% of the indexed annuity market. all other sources of noninterest income, among BHCs with assets between $1 Security Benefit Life ranked second, comprising 61.0% of that revenue, which billion and $10 billion, according to the followed, respectively, by Great grew 10.8% to $17.46 million, up from Michael White Bank Insurance Fee American, American Equity and Athene $15.76 million in 2012, while TIM income Income Report . USA. comprised 10.8%. VOLUME XV, ISSUE 4, APRIL 2014 PAGE 7

Indexed life insurance sales also achieved record levels in 2013, growing 7.95% over 2012 sales. In contrast to With BOLI , We Can Help Improve Your Bank ’s Bottom Line. indexed annuity sales, however, fourth Equias Alliance is proud to be at the head of the class quarter indexed life insurance sales of $430.4 million were down 2% from fourth with the ABA. Let us show you firsthand how we can help quarter 2012 sales, but were up 31% over optimize your current BOLI portfolio or evaluate a first time third quarter 2013 sales of $328.5 million. implementation of a BOLI program for your bank.

Pacific Life Companies remained the number one indexed life insurance Our BOLI solutions have earned the exclusive endorsement provider, with a 12.94% market share. AXA US ranked second with its top- of the American Bankers Association. This endorsement selling Athena Indexed Universal Life is based on our key strengths, which include: product, while National Life Group, Aegon and Minnesota Life ranked, respectively, Number of BOLI Placements Made third through fifth, Pleasant Hill, IA-based Number of Nonqualified Plans Designed Wink found based on carrier surveys. High Client Satisfaction Ratings U.S. APPLICATIONS FOR Experienced Administrative Service Professionals INDIVIDUALLY UNDERWRITTEN LIFE Thorough BOLI Risk Assessment Reviews INSURANCE CONTINUE DOWN YEAR OVER YEAR, BUT UP MONTH TO MONTH IN FEBRUARY U.S. applications for individually underwritten life insurance decreased 4.2% in February compared to February 2013, led by declines among individuals David Shoemaker, CPA/PFS, CFP ® aged 0-44 (-4.9%), followed closely by [email protected] declines among those aged 45-59 (- 8000 Centerview Pkwy, Ste 525, Memphis, TN 38018 | Tel: 901.754.4924 4.5%), while applications among individuals aged 60 and older decreased The American Bankers Association (through its subsidiary, the Corporation for American Banking) has ©2013 Equias Alliance endorsed services provided by Equias Alliance. 1.4%, according to the MIB Life Index. Still, February applications reversed David Shoemaker, CPA/PFS, CFP® is a registered representative of and securities are offered through ProEquities, Inc., a Registered Broker/Dealer, and member FINRA and SIPC. Equias Alliance LLC is independent of ProEquities, Inc. the month-to-month downward trend recorded in 2013. Compared to January 2014 activity, February applications grew 9.4%. However, with January declines transaction ... satisfies our Group Thailand and Vietnam. Standard down 7.9% from January 2013, year-to- profitability criteria ... and we look Chartered will distribute Prudential's life date applications for individually forward to partnering with more insurance products on a preferred basis underwritten life insurance were off 6.1% customers to offer longevity solutions in in two markets -- China and South Korea. from the same period in 2013, Braintree- the months and years to come." Prudential Group CEO Tidjane Thiam MA-based MIB Group found. The Aviva deal is Scor's fourth such described Standard Chartered as "one of transaction in the United Kingdom. the strongest, most respected and largest SCOR COMPLETES RECORD emerging markets banks in the world," SETTING PENSION DEAL WITH AVIVA PRUDENTIAL & STANDARD and said, "The business we have built Paris, France-based Scor Global Life, a CHARTERED SIGN SECOND 15- together has achieved significant growth, unit of reinsurer Scor Re, has agreed to YEAR PAN-ASIA BANCASSURANCE delivering compound annual sales growth underwrite about GPB5 billion ($8.4 AGREEMENT of 19% over the last decade." He added, billion) in pension liabilities held by London, England-based Prudential plc "We are excited by the prospect of London-based Aviva plc. The transaction and Standard Chartered plc have bringing the skills of both organizations to covers pension payments for the entered into a new 15-year other fast-growing emerging markets, approximately 19,000 pensioners who are bancassurance agreement expanding where demand for savings and protection members of the Aviva Staff Pension the terms and geographic scope of their is very strong." Scheme and took effect January 1, 2014. previous 15-year pan-Asia partnership. Standard Chartered CEO Peter Sands Scor described the transfer as "the Under the new agreement, which said, "Our aspiration is to be recognized largest pension scheme longevity swap takes effect on July 1, 2014, Standard as a leader in growing and protecting our completed to date globally" and said it Chartered will distribute exclusively clients' wealth with a specific aim to "aims to double its longevity business Prudential's life insurance products double our AUM to $300 billion by 2020." over the course of a three-year plan." through its branches in 9 markets – Sands added, "This agreement highlights Scor Global Life CEO Paolo De Martin Hong Kong, India, Indonesia, Malaysia, the value inherent in our powerful said, "This significant longevity the Philippines, Singapore, Taiwan, VOLUME XV, ISSUE 4, APRIL 2014 PAGE 8 distribution capability across some of the which more than covered a 2.9% Evans Bancorp President and CEO fastest growing markets in the world." decline in interest income. Net interest David Nasca said, "We expect continuing income, after $1.54 million in loan loss challenges for the financial services INDIA'S IRDA ORDERS SBI LIFE TO provisions compared to a $68,000 industry, such as strong competition and REFUND CUSTOMERS $45.2 MILLION recovery of provisions in 2012, slid interest rate and regulatory pressures to DIVERTED IN COMMISSION SCHEME 3.7% to $26.81 million, down from continue in 2014." He added, "Our efforts New Delhi, India-based State Bank of $27.85 million. Net income, after a 2% are expanding to include alternate India unit SBI Life has been ordered to increase in noninterest expense tied to distribution channels, allowing us to refund 2.75 billion rupees ($45.2 million) increased salary, benefit and capture and serve a larger customer base to over 750,000 customers who overpaid occupancy costs, declined 3.4% to whose interactions with banks are when they purchased SBI Life's $7.86 million, down from $8.13 million changing." Dhanaraksha Plus Limited Paying Term in 2012. In 2012, Evans Bancorp's insurance mortgage loan insurance policies brokerage income comprised 54.3% of its beginning in 2008 and continuing through 2011. India's Insurance Regulatory and Development Authority (IRDA) ordered SBI Life to make the refunds after it determined that the insurer positioned the product as a two-year premium payment policy but collected the entire premium up front. This allowed the insurer to pay 40% of the first-year premium and 7.5% of the second-year premium as commission to its parent, State Bank of India. The IRDA said, "Had the single-premium version of the product been offered to policyholders, the actual commission payable would have been 2%." The regulator added, "The large scale sale as a single- premium payment policy has only facilitated higher commission payments to the insurance intermediaries who are predominantly SBI and its associate banks." SBI Life CEO Atanu Sen said, "We believe we gave the buyers an informed choice." SBI Life intends to appeal the IRDA's decision, bestnews.com reports.

EVANS BANCORP REPORTS RISING INSURANCE EARNINGS COMPRISE 59.3% OF NONINTEREST INCOME Hamburg, NY-based, $833.5 million-asset Evans Bancorp reported insurance brokerage fee income in 2013 rose 3.5% to $7.21 million, up from $6.97 million in 2012, and income from bank-owned life insurance (BOLI) increased 3.9% to $508,000, up from $489,000. Insurance brokerage income, by far the largest contributor to noninterest earnings, comprised 59.3% of that revenue, which declined 5.2% to $12.16 million, down from $12.82 million, hit by a $1.6 million impairment on a tax credit investment in a community-based project. Net interest income on a 3.74% net interest margin rose 2% in 2013 to $28.35 million, up from $27.78 million in 2012, driven by a 27.5% cut in interest expense, VOLUME XV, ISSUE 4, APRIL 2014 PAGE 9

noninterest income and 17.2% of its net operating revenue. The company ranked 5th in insurance brokerage earnings among BHCs with assets between $500 Clamor no more. million and $1 billion, according to the Michael White Bank Insurance Fee Income Report .

GROWING INSURANCE-RELATED EARNINGS DOMINATE 82.7% OF ONEIDA'S NONINTEREST INCOME & DRIVE OVERALL EARNINGS GROWTH Oneida, NY-based, $742.5 million-asset Oneida Financial reported combined insurance brokerage, employee benefits and injury claims management fee income generated by Bailey, Haskell & LaLonde Agency, Benefit Consulting Group and Workplace Health Solutions grew 12.4% in 2013 to $24.17 million, up from $21.51 million in 2012. These combined earnings dwarfed all other The most revealing and respected sources of noninterest income, comprising 82.7% of that revenue, which reports in the industry. increased 9.8% to $29.21 million, up from $26.61 million in 2012. * * AS FEATURED IN Net interest income on a 3.23% net interest margin also increased, ticking up 1.1% to $19.80 million from $19.59 million in 2012, reflecting a $570,000 cut in interest expense, which more than covered a $362,000 decline in interest income. Net interest income, after a $240,000 decrease in loan loss provisions to $500,000, rose 4.2% to $19.30 million, up from $18.52 in 2012. Net income, despite a $5.24 million hike in noninterest expense to $42.38 million, reflecting increased salaries, benefits and operations costs largely tied to the December 31, 2012 acquisition of an insurance agency, rose 5.7% to $6.09 million, up from $5.76 million in 2012, driven by insurance-related noninterest income. Oneida Financial President and CEO Michael Kallet said, "Oneida Financial Corp. continues to demonstrate a consistent record of success in Central www.bankinsurance.com/products New York and beyond through the execution of a diversified banking, * * Use of the American Banker, Insurance Journal, Financial Services Roundtable, National Underwriter, Independent Banker, Bank Investment Consultant, Insurance Information Institute Fact Book, American insurance and financial services Bankers Insurance Association, ABA Banking Journal and U.S. Banker logos does not imply endorsement strategy." by their respective organizations. These logos are included only to illustrate some of the publications in which excerpts and/or information from the reports have been published. VOLUME XV, ISSUE 4, APRIL 2014 PAGE 10

INSURANCE & TRUST INCOME UP AT SOUTHWEST GEORGIA FINANCIAL Michael White Bank Insurance Moultrie, GA-based, $374 million-asset Southwest Georgia Financial reported Fee Income Report insurance brokerage fee income in 2013 remained the top contributor to SPONSORED BY DOWLING HALES noninterest income and rose 3.9% to $1.33 million, up from $1.28 million in 2012. Additionally, income from trust services increased, rising 11.2% to $228,000, up from $205,000, while income from retail securities brokerage The industry’s services declined 11.5% to $338,000, down from $382,000. Insurance, trust and preeminent report on securities brokerage earnings comprised, respectively, 26.1%, 4.5%, and 6.6% of bank insurance income noninterest income, which declined 8.0% and the to $5.09 million, down from $5.53 million in 2012, when mortgage banking income banks & bank was $736,000 higher. Net interest income on a 4.02% net holding companies interest margin increased 8.2% to $12.81 million, up from $11.84 million in 2012, that are benefitting reflecting both increased interest income most. and decreased interest expense. Net interest income, after a $25,000 decline in loan loss provisions to $420,000, grew 8.8% to $12.39 million, up from $11.39 million. Net income, after a $250,000 cut in noninterest expense, jumped 42.8% to www.bankinsurance.com/products/firs $2.77 million, up from $1.94 million in 2012. Southwest Georgia Financial President and CEO DeWitt Drew said, In 2012, Oneida Financial Corp.'s million, driven by a $1.22 million cut in "The driver of our growth has been insurance brokerage income comprised interest expense, which more than increases in noninterest bearing accounts 47.9% of its noninterest income and covered a $908,000 decline in interest … creating very little credit risks." 26.9% of its net operating revenue. The income. Net interest income, after a In 2012, Southwest Georgia Bank's company ranked 3rd in insurance decrease in loan loss provisions, ticked insurance brokerage comprised 24.7% of brokerage earnings among banks with up 1.8% to $17.62 million. Net income, its noninterest income and 7.5% of its net assets between $500 million and $1 after a $519,000 decrease in noninterest operating revenue. The company ranked billion, according to the Michael White expense, remained flat at $4.08 million. 16th in insurance brokerage earnings Bank Insurance Fee Income Report . Salisbury Bancorp President and CEO among banks with assets between $300 Richard Cantele said, "We are pleased to million and $500 million, according to the WEALTH MANAGEMENT INCOME see continued growth in assets under according to the Michael White Bank COMPRISES HALF OF NONINTEREST management in our Wealth Advisory Insurance Fee Income Report . EARNINGS AT SALISBURY Department. This continued success of Lakeville, CT-based, $587.1 million-asset our Wealth Advisory Department both SECURITIES BROKERAGE EARNINGS Salisbury Bancorp, parent of Salisbury distinguishes Salisbury from its CLIMB 32.5% AT STURGIS BANCORP Bank and Trust Co., reported wealth competitors and diversifies our income Sturgis, MI-based, $305 million-asset management fee income in 2013 rose stream by reducing our dependence on Sturgis Bancorp, parent of Sturgis Bank 4.1% to $3.07 million, up from $2.95 net interest income." and Trust Company, reported securities million in 2013, as assets under In 2012, Salisbury Bancorp's fiduciary brokerage fee income generated by its management increased 11.3% to $431.8 income comprised 42.6% of the Oakleaf Financial Services unit climbed million, up from $388.1 million in 2012. company's noninterest income and 11.7% 32.5% to $2.04 million, up from $1.54 Wealth management income remained of its net operating revenue. The million in 2012, and remained the largest the top contributor to noninterest company ranked 17th in fiduciary or trust contributor to noninterest earnings. earnings, comprising 48.7% of that earnings among bank holding companies Additionally, trust fee income grew 17.4% revenue, which fell 13.8% to $6.31 billion, with assets between $500 million and $1 to $364,000, up from $310,000, while down from $7.31 billion in 2012. billion, according to the Michael White income from bank-owned life insurance Net interest income on a 3.56% net Bank Wealth Management Fee Income (BOLI) dipped 1.4% to $278,000, down interest margin inched up 1.7% to $18.69 Report . from $282,000. Securities brokerage, VOLUME XV, ISSUE 4, APRIL 2014 PAGE 11 trust and BOLI income comprised, down, reflecting a $757,000 decline in $668,000 prepayment penalty on an early respectively, 38.8%, 6.9% and 5.3% of interest income, which could not be debt extinguishments, fell 12.8% to $1.63 noninterest earnings, which increased covered by a $475,000 cut in interest million, down from $1.87 million in 2012. 11.2% to $5.26 million, up from $4.73 expense. Net interest income, after a Sturgis Bancorp President and CEO Eric million in 2012, driven largely by $489,000 recovery of loan loss Eishen said, "Commissions and mortgage securities brokerage income. provisions, however, rose 8.0% to $9.83 banking activity have been a strong part Net interest income on a 3.42% net million. Net income, after a $1.76 million of the bank's earnings streams, interest margin slid 3.1% $9.34 million, jump in noninterest expense driven by a diversifying our income." He added, "Oakleaf commission income was higher in 2013 due to the positive performance of the stock market and other sales. Many of the accounts managed are fee-based relationships, providing a more stable income stream to the bank." In 2012, Sturgis Bank & Trust Company's investment program income comprised 33.8% of its noninterest income and 10.6% of its net operating revenue. The company ranked 3rd in investment program income among BHCs with assets between $300 million and $500 million, according to the Michael White - Securities America Report: Community Bank Investment Programs .

INSURANCE BROKERAGE INCOME Now that you know how the industry is doing . . . DECLINES ALONG WITH OTHER How are YOU doing ? REVENUE SOURCES AT WELLS FINANCIAL Wells, MN-based, $243.8 million-asset Wells Financial Corp. reported insurance Discover the simplest way to find out. brokerage fee income in 2013 declined 6.9% $659,000, down from $708,000 in 2012, and comprised 15.9% of GET VALUABLE FEEDBACK ON PERFORMANCE IN ANY OF THE FOLLOWING: noninterest earnings, which fell 21.6% to $4.15 million, down from $5.29 million in INSURANCE BROKERAGE FEE INCOME ANNUITY COMMISSIONS 2012, driven by a $1.08 million drop in TOTAL INSURANCE FEE INCOME MUTUAL FUND & ANNUITY FEE INCOME mortgage loan sales. Net interest income on a 3.70% net INVESTMENT FEE INCOME INCOME FROM FIDUCIARY ACTIVITIES interest margin declined 5.8% to $7.68 INVESTMENT PROGRAM INCOME WEALTH MANAGEMENT FEE INCOME million, down from $8.15 million in 2012, reflecting a $915,000 drop in interest SECURITIES BROKERAGE INCOME TOTAL NONINTEREST FEE INCOME income, which could not be covered by a $440,000 cut in interest expense. Net COMPARES, RANKS AND RATES: interest income, after a $200,000 NATIONALLY FEE INCOME DOLLAR VOLUME decrease in loan loss provisions to $640,000, slid 3.7% to $7.04 million, BY REGION AS A % OF NONINTEREST INCOME down from $7.31 million. Net income, BY STATE AS A % OF NONINTEREST FEE INCOME despite a $734,000 cut in noninterest expense, dropped 25.2% to $1.19 million, ASSET-PEER GROUP AS A % OF NET OPERATING REVENUE BY down from $1.59 million in 2012. AS A % OF RETAIL DEPOSITS In 2012, Wells Federal Bank's insurance brokerage income comprised AS A % OF ASSETS 12.9% of its noninterest income and 4.7% PER EMPLOYEE of its net operating revenue. The company ranked 23rd in insurance PER DOMESTIC OFFICE brokerage earnings among banks with BY COMPOUND ANNUAL GROWTH 1-3 YRS assets between $100 million and $300 million, according to the Michael White Bank Insurance Fee Income Report . ORDER TODAY AND WE’LL EMAIL YOUR REPORT IN AS LITTLE AS 24 HOURS VOLUME XV, ISSUE 4, APRIL 2014 PAGE 12

U.S. COMMUNITY BANKS REPORT RECORD COMMUNITY BANK INVESTMENT PROGRAM INCOME ANNUAL COMMUNITY BANK INVESTMENT PROGRAM INCOME INVESTMENT PROGRAM (DOLLAR AMOUNTS IN MILLIONS ) EARNINGS IN 2013 (DOLLAR AMOUNTS IN MILLIONS) U.S. community banks (banks and thrifts with under $4 billion in assets) reported a record $568.3 million in investment $600.0 program income in 2013, up 8.9% from $568.3 $521.6 million in 2012, according to the Michael White - Securities America $550.0 Report: Community Bank Investment $521.6 Programs . Record growth in each quarter M I L L I O N S $495.7 over the same quarter in 2012 drove the $500.0 increase. However, linked quarter growth slowed in the fourth quarter, with $466.5 $453.7 $456.5 investment program sales slipping 2.8% $450.0 to $140.4 million, down from $144.54 million in third quarter 2013. $417.4 Just short of a quarter (22%) of U.S. $400.0 community banks reported investment program earnings (i.e., combined securities brokerage and annuity fee income) in 2013, with each bank $350.0 generating an average $391,363 in that revenue (Production), up 12.6% from $300.0 $347,528 in 2012, enough to comprise on 2007 2008 2009 2010 2011 2012 2013 average 7.48% of noninterest income (Concentration) and equal to an average $858 per million dollars of community bank retail deposits (Penetration). SOURCE: Michael White - Securities America Report: Community Bank Investment Programs Additionally, on average, investment program revenue per bank employee reached $2,736 (Productivity), driving mean investment program income per domestic office (Density) up 17.5% to an adjusted $40,048. The vast majority (86.8%) of community banks with investment program income reported securities brokerage earnings, and 42.4% reported only securities brokerage earnings. At the same time, just of half (57.6%) reported annuity fee income, and 13.2% reported only annuity income. Not surprisingly, securities brokerage earnings dominated 74.8% of all investment program income reported in 2013, growing 8.9% to $425.1 million, up from $385.0 million in 2012, with fourth quarter earnings of $104.8 million up 11% over fourth quarter 2012 earnings, but down 3% from third quarter 2013 earnings of $108.1 million. Annuity earnings performance mirrored securities brokerage performance, rising 4.7% in 2013 to $143.1 million, up from $136.7 million in 2012, with fourth quarter annuity fee income of $35.6 million up 7.8% over fourth quarter 2012 earnings but down VOLUME XV, ISSUE 4, APRIL 2014 PAGE 13

2.3% from third quarter 2013 earnings of based Sun National Bank (+31.6% to $36.4 million. $1.68 million) INVESTMENT PROGRAM REVENUE MIX CenterState Bank of Florida ranked Commenting on U.S. community bank AT COMMUNITY BANKS - 2013 first in investment program income investment program performance in among all U.S. community banks, despite 2013, Securities America First Vice reporting a 39.1% drop in that revenue to President of Financial Institutions/ $22.52 million. Illinois-based Community Mergers & Acquisitions Michael Anderson Bank & Trust Company ranked a close said, "More than four in five (82.5%) of ANNUITY second, benefiting from a 26.9% jump in the community banks that reported at COMMISSIONS investment program income to $22.21 least $150,000 in investment program 25.2% million. Texas-based TIB The earnings in 2013 showed positive growth Independent Bankers Bank ranked a in that revenue. Two in three of that distant third with investment program group (67.9%) grew it at a rate of 10% or earnings dropping 41.6% to $7.57 million, better, and one in two (49%) grew in SECURITIES followed by Wisconsin-based Johnson excess of 20%." BROKERAGE Bank (+20.1% to $6.66 million) and Michael White added, "Community 74.8% Minnesota-based United Bankers Bank (- banks can further grow their programs by 23.4% to $5.33 million). increasing penetration of their customer CenterState Bank of Florida also bases, driving that revenue generated per topped the list of community bank annuity million dollars of retail deposits beyond producers, reporting a 21.1% climb in the current average of $858, closer to the annuity fee income to $2.57 million. $1,081 attained by U.S. banks with over COMMUNITY BANK Wisconsin-based AnchorBank, fsb $4 billion in assets." SECURITIES BROKERAGE INCOME (+6.9% to $2.18 million) and Bank Mutual (+3.3% to $2.18 million) tied for second, For more on the Michael White - followed by Indiana-based Lake City Securities America Report: Community $108.1 $104.8 Bank (+18% to $2.02 million) and Texas- Bank Investment Programs, click here. MILLION MILLION $94.5 MILLION

MICHAEL WHITE - SECURITIES AMERICA

R E P O R T 4Q 2012 3Q 2013 4Q 2013 Community Bank COMMUNITY BANK

Investment Programs ANNUITY COMMISSIONS

Measures and benchmarks community banks’ performance in generating securities brokerage and annuity fee income.

Uses innovative benchmarking ratios that give insight into community bank investment programs, including:

— Program Productivity $36.4 $35.6 $33.0 MILLION — Program Density MILLION MILLION — Program Contribution — Program Concentration — Program Penetration 4Q 2012 3Q 2013 4Q 2013 www.bankinsurance.com/products/cmmty-bk-inv-rpt SOURCE: Michael White - Securities America Report: Community Bank Investment Programs VOLUME XV, ISSUE 4, APRIL 2014 PAGE 14

EXPANDING ranked second (47%), trailed at a with property and casualty carriers. When DISTRIBUTION CHANNELS distance by improving distribution all metrics are considered, the following DRIVES CHANGING channels (23%), targeting new markets property and casualty insurers joined ASSET MANAGEMENT (23%) and, last of all and barely, ACUITY among the top 10 "easiest-to-do- MODELS increasing brand awareness (5%), EYGM business with" providers: Safety Expanding distribution channels and Limited found. Insurance Company, MMG Insurance developing new products have become Company, West Bend Mutual Insurance the new drivers of change to asset U.S. AGENTS NAME TOP-10 Company, The Central Insurance management operating models world- "EASIEST-TO-DO-BUSINESS-WITH" Companies, FCCI Insurance Group, wide, according to an EY Global Wealth P&C INSURERS SECURA Insurance Companies, Donegal and Asset Management Survey of 40 Sheboygon, MI-based ACUITY is the Insurance Group, Integrity Insurance, and CEOs and heads of operations across the easiest property and casualty insurer to Accident Fund Insurance Company of Americas and Europe. According to the do business with, according to surveys of America, mynewmarkets.com reports. survey, improving distribution channels 7,000 agents conducted over the course was named as the top driver by 55% of of 2013 by Deep Customer Connections. BB&T INSURANCE HOLDINGS the executives, followed by enabling new The finding is based on the agents' EXPANDS CAROLINA REACH products (45%), changing regulation rankings of carriers on eleven WITH WOODBURY & CO. (42%), and targeting new markets (33%). performance metrics: acts on agency ACQUISITION The focus on expanding distribution needs, underwriting responsiveness, Winston-Salem, NC-based, $183 channels was strongest among U.S. once and done (quotes and issues billion-asset BB&T Corp. subsidiary managers (81%), while enabling new without rework), underwriting flexibility, Raleigh, NC-based BB&T Insurance products trailed in second place (43%), policy services, effective technology, Holdings has agreed to acquire followed by targeting new markets (33%), handles claims promptly, handles claims Wilmington, NC and Myrtle Beach, increasing brand awareness (24%) and, fairly, marketing support, insurance SC-based Woodbury & Co. The last of all, changing regulation (17%). expertise and support, makes it easy for complete lines personal and European managers, in contrast, the agent to do business with the commercial agency and its 50- maintained their number one focus on policyholder. person staff offer personal and dealing with regulation (68%). As with Handling claims promptly and fairly commercial property and casualty U.S. managers, enabling new products tied as the agents' top issue in dealing insurance, employee benefits, individual life and health insurance, and professional liability insurance to businesses and individuals throughout the Carolinas. On the commercial side, the agency specializes in the construction, habitational, trucking, manufacturing, medical, financial, hospitality and inland and ocean marine industries. BB&T Insurance Holdings Chairman and CEO Wade Reece described the acquisition as "a great combination and a great addition to our Carolinas franchise." When the deal closes on April 1, 2014, BB&T Insurance Services' existing Michael White - In vestment Professionals INC Wilmington and Myrtle Beach agencies will merge with Woodbury & Co.'s B A N K operations, and Woodbury President Eugene Woodbury and Woodbury Commercial Lines Manager Carolyn EALTH ANAGEMENT Finley will join BB&T Insurance Services' W M management team. TM In 2013, BB&T (Branch Banking and R E P O R T Trust Company) generated $1.38 billion in insurance brokerage income that SPONSORED BY comprised 40.6% of its noninterest income and 15.9% of its net operating revenue. The company ranked 1st in insurance brokerage earnings among banks with assets over $10 billion, according to the Michael White Bank Insurance Fee Income Report . VOLUME XV, ISSUE 4, APRIL 2014 PAGE 15

U.S. BOLI ASSETS CLIMB TO NEARLY $144 BILLION IN 2013 TOTAL BOLI ASSETS HELD BY BANKS U.S. bank-owned life insurance (BOLI) assets rose 4.3% in 2013 to $143.84 BANKS BY PERCENT 2013 2012 billion, up from $137.95 billion in 2012, ASSET SIZE CHANGE according to the Equias Alliance / Michael White BOLI Holdings Report . More than half (56.4%) of U.S. Over $10 billion $111.50 billion $107.93 billion 3.30% commercial banks and savings $1 billion - $10 billion $16.95 billion $15.07 billion 8.30% institutions (banks) reported BOLI assets, up from 53.4% in 2012, led by $500 million - $1 billion $5.82 billion $5.39 billion 8.10% participation among banks with $1 billion to $10 billion in assets (79.8%), followed $300 million - $500 million $3.81 billion $3.53 billion 7.90% by banks with $500 million to $1 billion in assets (76.6%), banks with $300 million $100 million - $300 million $4.84 billion $4.58 billion 5.70% to $500 million in assets (69.7%), banks with over $10 billion in assets (69.2%), Under $100 million $914.30 million $874.40 million 4.60% banks with $100 million to $300 million in assets (57.9%), and banks with under All $143.84 billion $137.95 billion 4.30% $100 million in assets (36.7%). Among all SOURCE: Equias Alliance / Michael White Bank-Owned Life Insurance (BOLI) Holdings Report asset classes, the number of banks with BOLI holdings increased, except among the under $100 million asset class, where 5 fewer banks reported BOLI.

Almost all banks with BOLI holdings (93.4%) held some BOLI assets as general account life insurance (GALI). Hybrid account life insurance holdings, also called hybrid separate account life insurance (HALI), ranked a distant second, held by 30.9%, Knowledge followed by separate account life insurance, also called variable separate account life insurance (SALI), held by is Power. 15.5%. While the greatest number of banks held their BOLI Get yours here. assets in GALI accounts, SALI accounts held the greatest amount of The first research report on BOLI assets ($70.43 billion or BOLI holdings based on 49.0% of all BOLI assets), with 93% of authentic industry-wide data. those assets held by banks with over $10 billion

www.bankinsurance.com/products/boli-hr in assets. GALI ranked a close second in assets held ($58.78 billion or 40.9% of total BOLI), trailed at a distance by HALI ($14.63 billion or 10.2%). At the same time, assets held in HALI accounts showed the greatest growth (+9.1%), followed by GALI (+6.1%) and trailed by SALI (+1.9%). VOLUME XV, ISSUE 4, APRIL 2014 PAGE 16

PERCENTAGE OF INSTITUTIONS WITH BOLI HOLDINGS IN 2013 - BY CHARTER

56.4 % 54.8 % 73.8 % 50.4 % 66.9 % 53.7 %

ALL BANKS AND NATIONAL SAVINGS SAVINGS STATE-CHARTERED STATE-CHARTERED SAVINGS BANKS BANKS ASSOCIATIONS MEMBER NON-MEMBER ASSOCIATIONS COMMERCIAL BANKS BANKS

Among all U.S. banks with BOLI TOTAL BOLI ASSETS (IN BILLIONS) HELD BY BANKS IN 2013 assets, the cash surrender value of those GENERAL SEPARATE HYBRID assets equaled a mean 15.92% of the BANKS ACCOUNT ACCOUNT ACCOUNT sum of Tier 1 capital and loss allowances BY LIFE LIFE LIFE TOTAL ASSET and equaled a mean 15.60% of total INSURANCE INSURANCE INSURANCE SIZE capital. Both percentages are higher than ASSETS ASSETS ASSETS the respective 15.60% and 15.51% measured in 2012, but both percentages Over $10 billion $36.33 $65.58 $9.59 $111.50 are well beneath the 25% of both measures of total capital considered $1 billion - $10 billion $10.48 $3.78 $2.68 $16.95 prudent by federal banking regulators. $500 million - $1 billion $4.35 $0.56 $0.92 $5.82 For more on the Equias Alliance / Michael White BOLI Holdings Report , click here . $300 million - $500 million $3.03 $0.18 $0.60 $3.81

$100 million - $300 million $3.83 $0.26 $0.76 $4.84 Are You Under $100 million $0.76 $0.07 $0.09 $0.91 Receiving Your All $58.78 $70.43 $14.63 $143.84 Complimentary Growth Since 2012 6.10% 1.90% 9.10% 4.30%

Subscription? NUMBER OF BANKS REPORTING BOLI ASSETS

BANKS BY PERCENT 2013 2012 ASSET SIZE CHANGE

Over $10 billion 74 73 1.40%

$1 billion - $10 billion 446 427 4.40%

$500 million - $1 billion 492 485 1.40%

$300 million - $500 million 581 556 4.50% $100 million - $300 million 1,494 1,483 0.70% Under $100 million 753 758 -0.70% Register now to receive All 3,840 3,782 1.50% your complimentary Percentage of Banks 56.40% 53.40% 5.60% subscription today. Holding BOLI Assets SOURCE: Equias Alliance / Michael White Bank-Owned Life Insurance (BOLI) Holdings Report VOLUME XV, ISSUE 4, APRIL 2014 PAGE 17

U.S. ANNUITY SALES RISE 4.2%, adjusted annuity sales of $1.97 billion FIO DIRECTOR QUESTIONS LIFTED BY 16.6% CLIMB IN FIXED comprised the smallest percentage of SEPARATION OF INSURANCE ANNUITY SALES fixed annuity sales (8%), Beacon SECTOR, PIA RESPONDS U.S. annuity sales rose 4.2% in 2013 to Research found. Federal Insurance Office (FIO) Director $220.9 billion, driven by a climb in fixed While variable annuity sales were Michael McRaith told attendees at an annuity sales to $78.1 billion, up 16.6% down for the year 2013, they also Insurance Policy Summit meeting in from 2012, while variable annuity sales achieved positive sales growth in the Washington, DC in March, "We need to slid 1.5% to $142.8 billion, according to fourth quarter, rising 2% over third get past the notion that the insurance data reported by Evanston, IL-based quarter sales of $35.1 billion. Variable sector in the should be Beacon Research and Chicago, IL-based annuity net sales (total premium minus treated separately than any other sector." Morningstar. surrenders, withdrawals, exchanges and In response to what the National Growth in fixed annuity sales benefit payments), however, dropped to a Association of Professional Insurance continued throughout the year, with fourth -$2.81 billion, down from $1.52 billion in Agents (PIA) interpreted as a call to ignore quarter sales of $23.5 billion, up 4.7% the third quarter, and down from -$599 the McCarran-Ferguson and Gramm- over third quarter sales and 45.2% over million in fourth quarter 2012. Morningstar Leach-Bliley Acts and treat "the insurance fourth quarter 2012 sales. Indexed Intelligence Manager Fank O-Connor sector … the same as the banking and annuities comprised the largest said, "Continued heavy redemption securities sectors," PIA Senior Vice percentage (50%) of those sales, growing activity in group qualified plans drove President Patricia Borowski said, "The fact to $11.76 billion, up 39.2% over fourth down net flows." that insurance is regulated by our state- quarter 2012 sales, while book value Still, variable annuity net assets hit a based regulatory system is why our sector annuity sales of $6.33 billion, ranked record high of $1.87 trillion in the fourth emerged almost completely unscathed second, comprising 27% of fixed annuity quarter, up 4.5% from $1.79 trillion in the from the financial crisis, in marked contrast sales. While book value sales fell 11.1% third quarter and up 14.0% over $1.64 to the federally regulated sectors." from third quarter sales of $7.12 billion, trillion in fourth quarter 2012. Those PIA CEO Mike Becker said, "Our state- they climbed 44.9% over fourth quarter assets continued to be held primarily in based insurance regulatory system is best 2012 sales of $4.37 billion. Income equity accounts (41.2%), followed by suited to regulate insurance." He added, annuities ranked third, and with a record allocated accounts (30.9%), fixed "Insured risks will always be local…. $3.49 billion in sales comprised 15% of accounts (17.2%), bonds (9.2%) and Needed modernization is best accomplished fixed annuity sales, growing 23.8% over money market accounts (1.6%). through state-based organizations like the third quarter sales of $2.82 billion, and Morningstar's O'Connor said, "Demand National Association of Insurance climbing 46.6% over fourth quarter 2012 for individual products remained relatively Commissioners and the National sales of $2.38 billion. Market value steady." Conference of Insurance Legislators.

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Email: [email protected] Phone: 610.254.0440 Web: www.bankinsurance.com VOLUME XV, ISSUE 4, APRIL 2014 PAGE 18

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