BOLI / COLI Case Study: Supports Business Succession and the Executive’s Family

Background: The bank implemented a Salary Continuation Plan as a way to reward and retain certain key executives. The Bank purchased BOLI as way to informally finance this benefit plan while also providing key person protection for the Bank. Need: One of the bank’s top executives passed away suddenly. Based on the Salary Continuation Plan,… Read more »

Hybrid BOLI: Beware of Treatment Under Basel III

NOTE: Pangburn publishes article confirming EBN’s views on Hybrid BOLI and Basel III. Read it HERE. R. David Fritz, Jr., CLU – Managing Partner and Co-Founder, Executive Benefits Network Most banks find their guidance regarding BOLI purchases from the OCC Bulletin 2004-56 and other Interagency Statements. The OCC Bulletin 2004-56 includes rules related to the… Read more »

Succession Planning for Community Banks

In lieu of our Succession Planning for Community Banks WEBINAR on September 3 at 10am CDT, below is the whitepaper on the same topic. Please CONTACT US if you have questions or comments regarding succession planning for community banks. You may also download a print-friendly version of the paper HERE. Succession Planning for Banks and Businesses R…. Read more »

Why Smaller Banks Are Buying Employee Life Insurance (BOLI)

Original article from American Banker by Chris Cumming June 25, 2014 Smaller banks are slowly adopting bank-owned life insurance as a way to counter shrinking loan margins and diminished returns on other investments. Community banks have traditionally been reluctant to buy life insurance on key employees, a common practice among big banks. But since the… Read more »

IRS Announces New Program to Audit 409A Compliance

R. David Fritz, Jr., CLU IRS Announces New Program to Audit 409A Compliance Last month, the Internal Revenue Service announced that a Compliance Initiative Project (CIP) was underway involving a compliance audit for Section 409A plans. The CIP will initially focus on fifty large companies; however, this foreshadows a much broader Section 409A initiative enforcement…. Read more »

Why does my bank competition have higher Noninterest Income?

Jonathan Anderson- Director of Operations How often do you look at another bank’s noninterest income and wonder how they are continuously doing so well, regardless of any adversity in the industry? Noninterest income makes up a significant portion or most banks’ revenue. The composition of this revenue typically comes in the form of fees such… Read more »

The Pickle of Term vs. Perm

Nikki Kook- Marketing and New Business Coordinator Longevity and insurance. What do these have in common? Although technological and medical advances are wonderful and give us more time with our loved ones, it is leaving many people financially unstable after retirement. In addition, the average retirement age is becoming later and later, and many people’s… Read more »

Life Insurance as a Corporate Financing Tool

R. David Fritz, Jr., CLU Much of my experience with life insurance has centered on its use in business situations. In the business context, life insurance is traditionally associated with key person coverage, debt replacement and employee benefits. With the current economy, a new role emerged for life insurance—a tool in corporate finance. Corporate finance… Read more »

Third-Party Vendor Best Practices

Nikki Kook- Marketing and New Business Coordinator According to the OCC, a third-party relationship is defined as “any business arrangement between a bank and another entity, by contract or otherwise.”The OCC Bulletin 2013-29 recommends a community bank’s board and management should ensure risk management practices are in place throughout the relationship’s life cycle. The level… Read more »