CASH SURRENDER VALUE OF LIFE INSURANCE

6 Months Ended

Jun. 30, 2018

CASH SURRENDER VALUE OF LIFE INSURANCE [Abstract]

NOTE 7 - CASH SURRENDER VALUE OF LIFE INSURANCE

Activity on the Bank owned life insurance policies is as follows:

	Six months ended June 30,
	2018			2017

Beginning balance	$	17,132		$	6,470
Increase in cash value of life insurance		155			128
Additional policies acquired		-			6,428
Insurance proceeds		(777	)		-
Ending balance	$	16,510		$	13,026
End of period death benefit	$	27,492		$	17,070
Number of policies owned		42			42
Insurance companies used		5			5
Current and former directors and officers covered		17			16

The

Bank owned

life insurance policies are recorded on the Company’s financial statements at their reported cash (surrender) values. As a result of current tax law and the nature of these policies, the Company records any increase, less any applicaple surrender charges, in cash value of these policies as nontaxable noninterest income. If the Company decided to surrender any of the policies prior the the death of the insured, such surrender may result in a tax expense related to the life-to-date cumulative increase in the cash surrender value of the policy. If the Company retains such policies until the death of the insured, the Company would receive nontaxable proceeds from the insurance company equal to the death benefit of the policies.