Thursday, August 22, 2013

More banks selling securities, Charlotte firm finds

Perhaps its a response to low interest rates making net interest income harder to come by. Or maybe it's simply a matter of smaller banks with fewer offerings simply going out of business. But either way, the percentage of commercial banks that sell securities to customers increased in the last year, the first time since the beginning of last decade, according to a new report from Charlotte-based consulting firm Kehrer Saltzman & Associates.

About 27 percent of banks now report fee income from selling investments, after years of the number staying below 25 percent. It marks the first time the percentage had risen since 2001, the report says. Revenue in these business lines was up 17 percent last year.

In raw numbers, though, the number of banks selling investments is way down as hundreds of banks have shuttered around the country. The report also warns that there is a thinning number of investment advisers relative to assets under management. It also says that customers tend to trust banks far more than they trust the advisers who work there.

EX-MCCOLL PARTNERS BANKERS ADVISE ON NEW DEAL: They're now with Deloitte Corporate Finance, which announced Wednesday that it advised on the organic and gluten-free company Enray on its sale to The J.M. Smucker Company. Terms weren't disclosed. McColl Partners, as you recall, sold to Deloitte in June.

****This is a preview of The Charlotte Observer's Bank Watch Morning Report, bringing you banking news from the region, the top financial headlines, and the news driving activity in the Charlotte market.****