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ST. PETERSBURG, Fla. – A drop in revenue for the securities brokerage business halted a recovery that kicked in during October 2004. Credit unions and banks saw a 17% decrease in brokerage revenue in November 2004, according to the Kehrer-Raymond James Community Bank Brokerage Study, a monthly survey of CUs and banks with assets less than $4 billion. The Financial Institutions Division of Raymond James Financial Services, a wholly-owned subsidiary of Raymond James Financial provides third-party brokerage services to more than 260 CUs and community banks and conducts the survey. The index indicates that November’s brokerage revenue for credit unions and community banks was 10% above the level of November 2003, but 23% below the all-time high of 144 set in April 2004. The average gross brokerage revenue per financial advisor, including trail commissions and managed money fees, slumped 26% in November to $20,028. The average sales productivity was down 23% in November to $15,262, after improving 26% in October. Slipping market valuations of assets under management in November resulted in somewhat smaller trail commissions and managed money fees, said John Houston, national sales manager for the Financial Institutions Division of Raymond James Financial Services. “While the average monthly gross of financial advisors in community-based institutions is down 8% from a year ago, it is still 20% above the low point in advisor productivity of $16,723 in February 2003,” Houston said. Kenneth Kehrer, whose firm, Kenneth Kehrer Associates, conducts the monthly survey, pointed out that November’s brokerage revenue in smaller institutions was 52% higher than the low point in the Index in March 2002. -

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