What Bankers Want to Know About BOLI

BOLI decisions involve more than buying an insurance policy.

Bank executives need to understand how BOLI fits into the bank's balance sheet, earnings, capital position and executive benefit strategy.

Here are some of the questions we help answer:

“How much BOLI can my bank purchase?”

The appropriate amount depends on your bank's circumstances, including existing BOLI, capital, earnings, insurance needs and other factors.

We'll help you determine what may be appropriate for your bank.

“We already own BOLI. Can we purchase more?”

Possibly.

As a bank grows, its financial position and executive benefit needs can change. A bank that purchased BOLI several years ago may have additional capacity today.

We can review your existing position and determine whether additional BOLI deserves consideration.

“Is our existing BOLI performing well?”

That's a question worth asking.

We can review your existing BOLI and help you understand its current performance, projected earnings and how it fits into your bank's overall strategy.

“What kind of return can BOLI provide?”

BOLI economics depend on the policy, carrier, product design, assumptions and other factors.

Rather than relying on a generic BOLI return, we evaluate the numbers specifically for your bank.

“Can BOLI earnings help offset executive compensation?”

Potentially—and this is one of the most interesting applications of BOLI.

BOLI earnings can be incorporated into an appropriately structured executive benefit strategy.

Your Bank May Have a BOLI Opportunity You Haven't Identified. Let's find out.

You don't have to be ready to purchase BOLI.

You don't even have to know whether BOLI is right for your bank.

Start with a conversation.

We'll look at your situation and help you answer:

1. Where are you today?

Existing BOLI, balance sheet and current objectives.

2. Where could you go?

Potential additional BOLI capacity and projected economics.

3. Why would you do it?

Strengthen earnings, balance-sheet objectives, executive benefits and retention. S-Corporations can reduce shareholder taxable income.

4. Does it make sense?

If the numbers don't make sense, we'll tell you.

BOLI Can Do More Than Just Generate Earnings

It can become part of your executive retention strategy.

Banks compete aggressively for CEOs, CFOs, lenders and other key executives.

The challenge isn't simply attracting them.

It's keeping them.

That's why we developed the:

Hybrid Retention Plan

A Smarter Way to Retain and Recruit Executive Talent

The Hybrid Retention Plan is designed to combine:

SHORT-TERM INCENTIVES
Reward executives for near-term performance.

LONG-TERM WEALTH ACCUMULATION
Create incentives designed around long-term retention.

RETENTION PROVISIONS
Encourage key executives to remain with the bank.

BOLI-FUNDED ECONOMICS
Use the earnings generated by BOLI as part of the economic funding strategy.

Let us show you how the Hybrid Retention Plan appeals to both young and older executives.