Insurance income is one of different types of income in the non-interest income portion of a bank’s revenues. For some banks services charges which include overdraft charges can be very high. For others, insurance income may be the highest of all non-interest income.
On July 18th, I listed the Top 50 bank holding companies ranked by total insurance income for 2008. Today’ s post shows the Top 25 bank holding companies at which insurance income made up the most of total non-interest income in 2008.
Source: Michael White-Prudential Bank Insurance Fee Income Report, Michael White Associates and American Bankers Insurance Association
As the chart shows above, for some banks insurance income was huge. For eg. - Maine-based small bank Northeast Bancorp (NASDAQ:NBN) had 55% of non-interest income come from insurance income. This is a cause for concern since as a bank NBN was dependent too much on insurance income - which is not its core business area.
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