I recently published the BOLI quarterly report for 2017Q1. If you would like a complete copy, please email me or message me (information below). 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 2017Q1 report:

• Short-term and long-term interest rates have begun to level off after the initial spike post-election.
• Again, we are seeing a lag in net-interest margin rate of growth. 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 continue their gradual increase, accounting for 20% of all bank assets. HTM Securities have increased the most quarter over quarter; as note previously, this 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 $163B 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 2.52% (4.20% tax-effective) rate of return in 2017Q1. This overall “average” annualized return has kept within a tight range over the last 10 quarters.
• Last quarter, more than 171 banks added over $1Billion in BOLI. The average BOLI purchase in was $6.01M. However, the median purchase was just over $1.5M dollars.

The above information just highlights more than 30 pages of information in the quarterly report. If you want a free copy of the PDF, please download from the link below.