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Company - Owned Life Insurance
12 Months Ended
Dec. 31, 2012
Investments, All Other Investments [Abstract]  
Company-Owned Life Insurance
COMPANY-OWNED LIFE INSURANCE

Company-owned life insurance consists of the following:
December 31,
2012

 
2011

Key executive, principal shareholder
$
4,858

 
$
4,800

Key executive split dollar
4,538

 
4,441

Group life
67,333

 
65,639

Total
$
76,729

 
$
74,880



The Company maintains key executive life insurance policies on certain principal shareholders. Under these policies, the Company receives benefits payable upon the death of the insured. The net cash surrender value of key executive, principal shareholder insurance policies was $4,858 and $4,800 at December 31, 2012 and 2011, respectively.

The Company also has life insurance policies covering selected other key officers. The net cash surrender value of these policies was $4,538 and $4,441 at December 31, 2012 and 2011, respectively. Under these policies, the Company receives benefits payable upon death of the insured. An endorsement split dollar agreement has been executed with the selected key officers whereby a portion of the policy death benefit is payable to their designated beneficiaries. The endorsement split dollar agreement will provide post-retirement coverage for those selected key officers meeting specified retirement qualifications. The Company expenses the earned portion of the post-employment benefit through the vesting period.

The Company has a group life insurance policy covering selected officers of FIB. The net cash surrender value of the policy was $67,333 and $65,639 at December 31, 2012 and 2011, respectively. Under the policy, the Company receives benefits payable upon death of the insured. An endorsement split dollar agreement has been executed with the insured officers whereby a portion of the policy death benefit is payable to their designated beneficiaries if they are employed by the Company at the time of death.