2023 was an unprecedented year in banking with a sharp increase in interest rates being the lead story. Banks faced new dynamics in navigating the spreads between pricing loans and deposits, as well as dealing with liquidity challenges. With all of the changes in interest rates, it is a good time to review the impact… Read more »
BOLI with Tight Liquidity
In this high interest rate environment, the yields on Bank Owned Life Insurance (BOLI) are still attractive. BOLI continues to be desirable and has remained competitive to other bank investments due to the tax-free build up of BOLI earnings. With tight liquidity, banks are purchasing BOLI for the following reasons: Helps to offset the costs… Read more »
Safety and Soundness Review on BOLI
It is imperative that banks periodically conduct a thorough review of their Bank Owned Life Insurance (BOLI) holdings beyond the information typically provided in an Annual Review by an existing BOLI vendor. The IRC Section 7702 enacted on January 1, 2021 makes this review especially critical as permanent life insurance policies have become more efficient. … Read more »
Volunteering: Prevent Blindness
On January 19, EBN had the opportunity to spend the morning volunteering with Prevent Blindness Wisconsin. As a team we did vision screening for 241 children at a local Milwaukee Elementary School and referred 93 students to further vision care. We had a fun morning as a team and always enjoying partnering together.
Family-Owned and Closely-Held Retreat Reflections
Recently, David Fritz and Pat Marget were panelists at the Wisconsin Bankers and Illinois Bankers Association’s Family-Owned and Closely-Held Bank Strategic Retreat held in Madison, Wisconsin. The discussions with the banks that identify as closely-held and/or family-owned focused on the challenges of transferring ownership to the next generation if proper estate planning and succession planning… Read more »
VIDEO: Choosing an Insurance Carrier for BOLI
Choosing an Insurance Carrier for BOLI EBN’s approach in recommending BOLI is to make sure our clients understand the carrier and product they are investing in. When selecting the best insurance carrier to underwrite the BOLI, it is important for the bank to look at highly rated insurance companies with the strongest credit ratings from each… Read more »
VIDEO: Are BOLI Yields Competitive?
David/Pat, BOLI Yields (canva.com) BOLI yields have remained competitive to other bank investments partly due to the tax-free build-up of BOLI earnings. The yields on BOLI products have been attractive, and has sustained their competitiveness during the low interest rate environment we’ve experienced for the last several years. Learn more in our video!
Video: What is BOLI?
EBN is answering some commonly asked questions on Bank Owned Life Insurance (BOLI), starting with the basic question of What is BOLI? BOLI is the purchase of a single premium permanent life insurance policy that is owned by the bank and generally issued on the lives on key bank employees and directors. Watch the short… Read more »
Why Own Bank Owned Life Insurance (BOLI)?
Each year, there is an increasing amount of Bank Owned Life Insurance (BOLI) purchased in the United States. BOLI is life insurance owned by the bank and issued on the lives of bank employees and directors. According to the FDIC, in 2021, 66% of all US banks owned BOLI. Listed below are the primary reasons… Read more »
Volunteer Day – Hunger Task Force
On Monday, October 18, EBN had the opportunity to volunteer for the Hunger task Force Farm in Franklin, Wisconsin. We learned so much about the Hunger Task Force and all that they provide for the Community. We were grateful to help such a great Organization. We spent the afternoon washing over 1,500 pounds of collard greens!