BANK-OWNED LIFE INSURANCE
Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value. Increases in the cash surrender value are recognized as other noninterest income. The Company initially invested $2.0 million during the first quarter of 2012 for policies covering the lives of certain key employees. During 2013, the Company invested an additional $2.1 million, the majority of which was for policies on certain key employees of our residential mortgage department.
