Pub. 6 2016-2017 Issue 1

8 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 DAVID SHOEMAKER AND KEN DERKS EQUIAS ALLIANCE Executive Benefit Plans in 2016: Emerging Trends For banks that have implemented various types of compensation plans, it may mean including an additional key officer in these plans. Since the credit crisis, most community banks have been able to grow and improve their financial condition. According to the Federal Deposit Insurance Corp. (FDIC), almost 60% of community banks reported higher year-over-year earnings for the period ending in the third quarter of 2015. In addition, community banks have increased assets by 5.6% and total loans and leases by 8.% for the same period adjusted for mergers. While these growth numbers do not represent the pre-credit crisis years, the industry is showing an improvement. 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 talent, while other bankers believe they are now in a position to invest in additional key talent to grow their organization. For banks that have implemented various types of compensation plans, it maymean including an additional key officer in these plans. Attractive executive compensation plans include