Pub. 4 2014-2015 Issue 2

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S September • October 2014 9 The FDIC reported there were 6,812 banks operating as of December 31, 2013. According to the 2014 Equias Alliance/ Michael White BOLI Holdings Report, an analysis of the FDIC data revealed that: • Bank-owned life insurance (BOLI) assets reached nearly $143.84 billion in 2013, reflecting a 4.3% increase from $137.95 billion in BOLI assets held in 2012 by commercial banks, savings banks and savings associations. • Total BOLI assets reported by Colorado banks increased to $242.8 million, an increase of 17.5% from 2012 to 2013. According to the FDIC and Equias Alliance research, 44.2% of all Colorado banks report BOLI holdings as-of 3/31/14. • Nationwide, 56.4% of all banks reported holding BOLI assets in 2013, a 1.5% increase in comparison to the number of banks holding BOLI at the end of 2012. • The largest portion of BOLI assets was held in Separate Account Life Insurance (“SALI”) which the marketplace also refers to as Variable Separate Account Life Insurance. SALI assets totaled $70.43 billion representing 49.0% of all BOLI assets. Although SALI assets account for the largest portion of total BOLI assets, they were actually held by the fewest number of banks. • The type of BOLI assets most widely held by banks in 2013 was General Account Life Insurance (“GALI”). Ninety-three percent (93.4%) or 3,585 of the 3,840 holding BOLI assets reported having at least some of their assets in GALI policies. GALI assets totaled $58.78 billion as of the end of last year and represented 40.9% of total BOLI assets in 2013. • Nearly twelve hundred (1,188) or 30.9% of the 3,840 institutions reporting BOLI assets held their assets in Hybrid Account Life Insurance (“HALI”) which the market also knows as Hybrid Separate Account Life Insurance. HALI assets totaled $14.63 billion at the end of 2013. • The fastest growing type of BOLI assets in 2013, in terms of the number of banks holding them, was Hybrid assets. Over the last year, the number of banks using HALI accounts increased 10.3% from 1,077 in 2012 to 1,188 banks in 2013. • The highest rate of BOLI ownership occurred among banks and thrifts with assets between $1 billion and $10 billion, as 446 of 559 banks and thrifts or 79.8% reported having them in 2013 • Nationally, mean bank BOLI assets as a percent of the sum of Tier 1 capital and the loss allowances increased (2.0%) from 15.60% in 2012 to 15.92% in 2013. FDIC data over the past several years shows that both the number of banks and the amount of BOLI assets held by banks continues to grow. For a copy of the complete 2014 Equias Alliance/Michael White BOLI Holdings Report, please contact Ken Derks at Kderks@equiasalliance.com or call 469.252.1037. Securities offered through ProEquities, Inc., a Registered Broker/Dealer and member FINRA & SIPC. Equias Alliance, LLC is independent of ProEquities, Inc. CEDCO Small Business Finance Corporation Your Best Soursce for SBA Real Estate Loans New Easier Qualification Uninterrupted access to money through a monthly SBA-backed bond auction Low fixed-rate financing Low down payments CEDCO Small Business Finance Corporation Colorado’s SBA 504 Loan Expert TM 1175 Osage Street, Suite 110 Denver CO 80204 Denver 303-893-8989 Grand Junction 970-243-1852 www.cedco.org  More stability for your operation  A stronger balance sheet  An asset to sell when you’re ready AS A LEADING SBA 504 LENDER WE MAKE IT EASY FOR YOU  Buy, Build, Remodel or Expand Real Estate  Purchase and install long-lasting equipment  Fast, expert processing - with low loan costs  Refinance may be an option  We lend up to $5 million: borrow up to $20 million when combined with bank financing  Interest rate as low as 5.25%, fixed for 20 years  Down payments range from 10% to 20%  Most small Businesses are Eligible STREAMLINED PROCESSING  Front Range and mid-mountains call Jeff or Mary Jane 303-893-8989  Western Colorado call Pat 970-243-1861 n