29 HќќѠіђџȱ юћјђџ юџѐѕ 2014 of the group (e.g., the number of ¡ȱȱȱęȱ has from national and state banking associations); the background and experience of the consultant; and the level of service they will receive after the sale (e.g., having the CPAs, Ĵ¢ȱȱȱȱȱ ěȱȱȱ¡ǰȱǰȱǰȱ ¢ȱȱȱĴȱ that come up). In fact, in most situations, the acquiring bank will also have BOLI holdings and understand the advantages of BOLI ownership. If your SERP plan or other executive ęȱȱ¢ȱȱ¢ȱ BOLI, just like other SERP plans, they ¢ȱȱęȱȱ accounting charges in the event there is accelerated vesting upon a change of control. ȱ ȱȱȱȱ ȱ ȱ service provider to choose? The bank should assess the reputation яќѢѡȱѡѕђȱ Ѣѡѕќџ David Shoemaker is president of Equias Alliance LLC, whose consultants have assisted more than 800 banks with the design and implementation of ęȱęȱȱ ȱǯȱ ȱȱ 23 years of experience in the insurance and banking industry. For more information about Equias Alliance LLC, a Diamond Associate Member of the Indiana Bankers Association, contact Todd Andritsch at 317-336-7722, email: tandritsch@equiasalliance.com. ęȱȱ¢¢ȱǞśŖǰŖŖŖȱȱ $100,000. Ȃȱȱȱȱȱȱ ȱȱȱȱȱȱ the BOLI program? BOLI can be surrendered at any time, and the full amount of the cash surrender value may be withdrawn. There are no ęȱȱȱ¢ȱȱ insurance company. However there could be adverse tax consequences. In addition to the usual tax on gains, an additional 10 percent penalty tax will be imposed on the gains ȱȱ¢ȱȱȱȱęȱ endowment contract, which most single premium policies are. Would having BOLI impact a future change of control for the ǵȱIt is important to distinguish between a BOLI policy, which is an asset owned solely by the bank, and any supplemental executive retirement programs (SERP) or other ¡ȱęȱȱȱ¢ȱ funded by the BOLI. Having BOLI on the books earning a reasonable rate of return is not seen as negative. Our experienced team can serve your audit, tax, regulatory compliance, loan review, IT audit, and security assurance needs, delivering a higher return on experience. Rob Bondy , Steve Schick, Mike Stearns, Elizabeth Snyder, Joe Oleksak Call for a complimentary consultation 877.622.2257, x34013. banks.plantemoran.com {Trusted resource.} Note:The original article was published in BankDirector.com.
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