Financial Institutions

Smart financing alternatives.

BOLI, or bank-owned life insurance, is just what it sounds like: a life insurance policy you can buy to insure the lives of your key employees. This tax-advantaged asset acts similarly to a bond, allowing banks to offset the expenses needed for superior benefits and/or informally fund executive benefits. As the policy's owner and beneficiary, your bank harnesses unique benefits, including the ability to: Insure the economic loss of a key employee’s premature death Offset the ever-increasing costs of employee health and welfare ERISA plans Provide cost recovery for pre- and post-retirement executive compensation and benefit plans Have an asset with a value highly correlated to the changing value of a liability obligation, i.e., a "hedge" These benefits are a direct result of the fact that BOLI offers: An asset value that accumulates on a tax-deferred basis, treating the change in value as "other non-interest income" Income-tax-free death proceeds for recovering the present and long-term costs of employee benefits and compensation plans A more efficient method of financing employee benefit and compensation plans than alternatives Our unique BOLI service model will help you understand every aspect of the transaction and plan design. We'll also help you implement, monitor and maintain those assets in line with the most current regulatory and compliance requirements.Our BOLI Administration SolutionAt NFP, we’ve built a simple, sophisticated and streamlined BOLI system — all with the way you work in mind.We call it NFP Connect, and it makes managing your BOLI program easier than ever.Take as much – or as little – control of your bank-owned life insurance administration as you need, with our proprietary, all-in-one tool that delivers: Monthly, quarterly and annual reporting BOLI compliance reporting Insurance carrier financial and rating information Retirement and split-dollar benefit accounting Participants statements Tax reporting Weekly social security sweeps Secure online access As always, we’re completely upfront about how we can help you, every step of the way. There are no hidden costs, and if you ever have questions, just call up your account executive for help figuring out the answer.

Generating revenue while insuring your equity loans.

The Equity Protection Program creates more loan opportunities and measurable growth for your home equity portfolio by increasing your LTV parameters and guidelines, thereby expanding the loan options for your borrowers. Innovative lenders are successfully using this program to reach their revenue goals and increase their customer base.How It WorksWe individually underwrite each lender to design a customized pricing structure and set of underwriting guidelines that suit your particular needs and increase your loan offerings up to $250,000 per loan. Our delegated guidelines include debt- to-income ratios as high as 45%, and FICO scores as low as 660 for most loans and lines of credit.We insure the following loan types: 100% HELOC 100% Purchase Money 100% Closed End 133% Secured Home Improvement Unsecured Home Improvement There are no monthly minimums or implementation fees and no cost to the lender as premiums are passed through via the interest rate. The program allows the lender to decide usage within CLTV ranges, i.e., 80%-100%, 90%-100%, 80%-90%.Transferring Risk of Loan DefaultYour risk of loan default is transferred; claims are paid for 100% of the outstanding balance, eliminating costly foreclosure and REO expenses which improves your balance sheet. As a result, many lenders are also able to reduce their loss reserves.Providing High-Quality ServiceOur team members focus solely on the Equity Protection Program and have over 100 years of combined experience in all aspects of Underwriting and Servicing. We've developed a product that seamlessly integrates into your existing workflows and procedures without the need for extra staff hours. Comprehensive training and ongoing support for your staff are always available, and we take pride in our reputation for providing excellent service.

Bridge the retirement gap with thoughtful design.

Your company depends on the talents of its key executives. They depend on you to help them save for retirement. Unfortunately, government rules restrict the amount of money these highly compensated employees can contribute to tax-deferred plans, like a 401(k). In fact, they may be able to replace only 30% to 50% of their salary — unless you offer a deferred compensation plan. And we know exactly how to give you this serious recruiting and retention advantage.A properly designed deferred compensation plan allows you to provide your top performers an affordable, nonqualified solution to the "retirement gap." Whether they're domestic or international employees, we can design, implement and administer a highly personalized plan that benefits both them and your company.Your affordable, tailored plans will be smoothly executed and are backed by financing options, an implementation timetable and plan administration services, including: Participant investment option processing Contribution earnings/losses allocation Maintenance of balance information Calculation and tracking of vesting schedules and distributions Creation of plan liability reports for asset rebalancing