The BOLI quarterly report provides an overview of current bank & BOLI trends, historical and current performance, an in-depth view of banks that are active in the BOLI market and a complete list of banks that purchased BOLI last quarter.

A few highlights from the 2016Q3 report:

• After a flat Effective Federal Funds Rate for most of the year, the market is expecting a 90% chance of rates going up in December.
• Since 2015Q1, net interest margin has actually declined as 1-year rates have risen off of the lows. The primary cause of this lag is the “maturity mismatch” between bank liabilities and assets.
• Asset growth rate has been dropping at banks under $1B in assets YTD. The sweet spot for growth has been banks in the $3B to $50B.
• Overall, securities account for approximately 20% of all bank assets. HTM Securities have increased the most quarter over quarter. this increase is probably a function of the accounting rules that state that gains and losses in the value of HTM securities that result from movements in market prices (e.g., interest rates) aren’t recognized unless the asset is sold.
• BOLI has continued to grow, eclipsing $160B of total cash value last quarter.
• General Account BOLI continues to be the primary type for banks under $100B in assets.
• On average, cash surrender value grew by an annualized 2.62% (4.36% tax-effective) rate of return in 2016Q3. This overall “average” annualized return has kept within a tight range over the last 10 quarters.
• Last quarter, more than 189 banks added BOLI. The average BOLI purchase in 2016Q2 was $9.4M. However, the median purchase was just over $1M dollars.

The above information just highlights more than 30 pages of information in the PDF in the quarterly report below.