Georgia-Carolina Bancshares, Inc | 2013 | FY | 3


Note 5—Bank-owned life insurance (BOLI)


In September 2007, $8.0 million in bank-owned life insurance (BOLI) was acquired through two policies in order to insure certain key officers of the Bank. In September 2013, an additional $5.0 million bank-owned life insurance policy (BOLI) was acquired in order to insure certain key officers of the Bank. As of December 31, 2013, the total BOLI cash surrender value was $14.8 million resulting in other income for 2013 of $448,000 and an annualized net yield of 4.06%. As of December 31, 2012, the BOLI cash surrender value was $10.0 million resulting in other income for 2012 of $392,000 and an annualized net yield of 4.01%. During 2013, the Bank received death insurance benefits from the two original Bank owned life insurance policies totaling $1.42 million. These benefits resulted in $806,000 of other income.



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