Pub. 5 2015-2016 Issue 6

18 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S FEATURE ARTICLE The percentage of unprofitable community banks are at the lowest level in many years DAVID SHOEMAKER & KEN DERKS, EQUIAS ALLIANCE Executive Benefit Plans in 2016: Emerging Trends S ince the credit crisis, most community banks have been able to grow and im- prove their financial condition. Accord- ing to the Federal Deposit Insurance Corp. (FDIC), almost 60 percent of community banks reported higher year-over-year earnings for the period ending in the third quarter of 2015. In addition, community banks have in- creased assets by 5.6 percent and total loans and leases by 8.5 percent for the same period adjusted for mergers. While these growth numbers do not represent the pre-credit crisis years, the industry is showing an im- provement. The percentage of unprofitable community banks are at the lowest level in many years. Community banks are defined by the FDIC Community Bank Study, December 2012, and one of the criteria is that these banks are “likely to be owned privately or have public shares that are not widely traded.” What do improving conditions mean to banks and their compensation plans? Some banks have seen challenges in retaining key officers given increased competition for top