Solutions for talent retention and excess liquidity

Key talent retention

How would your bank fare if your top-performing lenders left tomorrow?

During these unprecedented times, retention of key talent, including mid-level officers, continues to be challenging. They value the types of plans differently than their older counterparts and are not always interested in retirement plans.

For this younger generation, boards should consider a deferred compensation plan that allows for in-service distributions, which can be timed to coincide with certain events; e.g., child entering college. Plan payments made to the participant while still employed are customizable and can be made at some future point such as three, five or 10 years.

Liquidity and alternative investment challenges

Can you find an acceptable return for your excess liquidity?

Despite the low interest rate environment, some of the top insurance carriers currently offer products with tax equivalent yields in the 3% to 4% range. The tax-advantaged interest generated by a fixed-income BOLI policy is typically substantially higher than what a bank can earn on other investments with a similar risk profile, especially in the current rate environment.

NFP (executivebenefits.nfp.com) is also endorsed by the ABA and serves more than 1,250 banks and helps management to implement customized compensation and executive benefit plans as well as place BOLI and provide BOLI and executive benefit administration services. Also, NFP provides a variety of other insurance products to help reduce and transfer risk. Visit NFP.com for more information.

*Ken Derks and Trey Deupree are registered representatives with Kestra Investment Services, LLC.

Ken Derks
[email protected]
469-252-1037
Trey Deupree
[email protected]
469-252-1038