BANK-OWNED LIFE INSURANCE
The Company’s Board of Directors approved the purchase of bank-owned life insurance ("BOLI") on January 26, 2005. The Company is the owner and beneficiary of these life insurance contracts. The Company invested a total of $17,250 thousand in nine bank-owned life insurance policies during the first half of 2005. In conjunction with the acquisitions of First State Bank and Jackson Bank, the Company assumed $362 thousand and $3,348 thousand, respectively, in bank-owned life insurance. The Company’s investment in bank-owned life insurance is as follows:
|
| | | | | | | |
| 2013 | | 2012 |
| (in thousands) |
Cash surrender value—beginning of year | $ | 27,576 |
| | $ | 26,722 |
|
Increase in cash surrender value, net of expenses | 770 |
| | 854 |
|
Cash surrender value—end of year | $ | 28,346 |
| | $ | 27,576 |
|
The Company reports income and expenses from the policies as other income and other expense, respectively, in the consolidated statements of operations and expenses. The income is not subject to tax and the expenses are not deductible for tax.
