Dylan Habeeb – Presentation and Case Design Specialist The current problem facing Defined Benefit Plans (both Qualified and Nonqualified) in the corporate market: It is estimated that 93% of Qualified Defined Benefit Plans are underfunded. Companies are getting rid of and amending Qualified Defined Benefit Plans due to the low interest rate environment and having… Read more »
Using an Association Endorsed Vendor – Is it in the Best Interest of the Bank?
Endorsed vendor status is used to position some firms to the front of the line with banks looking to purchase products or services. Is this in the best interest of the bank? Most banking associations have an endorsed vendor program. This entails a process of review by the association board and a selection process, which… Read more »
E-Filing Now Available for Top Hat Plan Statements
On September 30, 2014, the Department of Labor’s Employee Benefits Security Administration (DOL/EBSA) published a proposed regulation that would require electronic filing of “top hat” plan statements. A top hat plan is a nonqualified plan that is unfunded, covers a select group of management and/or highly compensated employees and allows the participant to defer income… Read more »
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 »
BOLI / COLI Case Study: Offset Increased Health Insurance Expenses
Background: Facing an issue that is not uncommon today, a bank incurred an 8.9% increase in its health insurance premiums. Because of lower margins and a low-yield environment, the bank passed all of the increased expenses to its employees. The bank was unable to compete in its market for top talent with this short-term solution… 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 »