EXECUTIVE INCENTIVE PLAN 2009
EXHIBIT 10.4
EXECUTIVE INCENTIVE PLAN
2009
| Eligibility: | Executive Team Members | |
| Plan Features: | 100% Holding Company Performance |
Total incentive bonus at target is 25% of Base Pay with a maximum of 35%.
Holding Company Income [pre-provision] (35%)
For the nine months ending 12/31/09
| Goal $6,650,000 | Bonus % (of base pay) | |
| <100% | 0% | |
| >100% | 8.75% | |
| >110% | 12.25% |
| • | Holding company income pre-provision net of tax ($5,000,000 + 1,650,000 = $6,650,000) – related to growth, not as a result of higher charge-offs |
| • | Adjusted for non-recurring expenses and gains (i.e. gains/losses on securities, merger expense, etc.) |
Asset Quality (20%)
| Non-Performing Assets/Total Assets (at 12/31/09) | Bonus % (of base pay) | |
| > 150 bp | 0% | |
| 149 bp – 101 bp | 5.00% | |
| < 100 bp | 7.00% |
Asset Quality (15%)
| Charge offs/Average Loans (9 months ending 12/31/09 annualized) | Bonus % (of base pay) | |
| >60 bp | 0% | |
| 30 bp – 60 bp | 3.75% | |
| <30 bp | 5.25% |
Holding Company Stock Performance and Capital (30%)
| Bonus % (of base pay) | ||
| Below Expectations | 0% | |
| Meets Expectations | 7.50% | |
| Exceeds Expectations | 10.50% |
| • | Stock trading multiple(Price/Tangible Book Value) versus Peer |
| • | Improvement in average volume traded |
| • | Increase institutional ownership to >10% |
| • | Successful sub-debt raise |
| • | Identifying favorable merger opportunities |
Qualifiers:
| • | Must achieve satisfactory rating on all regulatory, external and internal audits. |
| • | Employee must be employed on the date of payout. |
| • | Employee must achieve a rating of “Good” (3) or higher performance level. |
*This plan may be altered, modified, or terminated at any time and without notice.
