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ST. PETERSBURG, Fla. – Credit unions and community banks saw record highs with their securities brokerage business in April and July, but August was a different story. According to the Kehrer-Raymond James Community Bank Brokerage Study, which surveys a sample of CUs and banks with $4 billion in assets or less each month, brokerage revenue declined 7% in August from July but was still up 10% from August 2003. Brokerage revenue retreated from 129 in July to 120 in August, after reaching the all-time high of 144 in April, according to the survey. The decrease in securities brokerage business can be tied to declining market valuations of assets under management, which resulted in smaller trail commissions and managed money fees, said John Houston, national sales manager for the Financial Institutions Division of Raymond James Financial Services, the sponsor of the survey. The lower fees “more than offset the increased sales productivity”, pulling overall brokerage revenue down, he added. James Fulp, president of the Financial Institutions Division of Raymond James Financial Services, Inc., said the index indicates that August’s brokerage revenue in community banks and credit unions was 20% higher than the average month in 2002. The average gross brokerage revenue per financial advisor, including trail commissions and managed money fees, slipped 2% in August to $22,164, according to the survey. The average gross revenue produced by a community bank-based financial advisor, excluding trailer and advisory fees, increased 12% in August to $18,926, after declining 11% in July. -

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