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2019 DIRECTOR COMPENSATION SURVEY May 2019 Survey Results
2019 DIRECTOR COMPENSATION SURVEY
May 2019 Survey Results
Disclaimer
2019 Director Compensation Survey
All information distributed to participants and purchasers in connection with the Blanchard Consulting Group 2019 Director Compensation Survey should be treated with the strictest confidentiality. The data in this survey should not be distributed to any outside parties without the prior express written authorization of Blanchard Consulting Group.
Table of Contents
2019 Director Compensation Survey
Introduction
I. Participants
II. Director Trends
III. Director Compensation and Benefits
Introduction
2019 Director Compensation Survey Page 1
INTRODUCTION
The composition of directors serving on bank boards is a changing landscape. Boards are tasked with being strategic and open minded as they select new candidates to serve on the board. The need for careful planning of board succession is greater today in light of aging boards, pressure from rating agency governance watchdogs and regulators, and also the demand for a wider and more diverse set of skills to support changes in banking strategies in a fast-changing world. In order to attract and retain talented directors, banks need to be strategic with their board compensation. The 2019 Director Compensation Survey (“2019 Survey”) provides valuable data for bank boards and directors regarding director trends, overall board structure, and compensation paid to directors for board service in 2018.
We appreciate and thank the one hundred and four banks that completed the Blanchard Consulting Group 2019 Director Compensation Survey. Thank you for contributing your time and board of director compensation data.
Customized Board Compensation Analysis
This year Blanchard Consulting Group is offering all banks that purchase this survey a customized peer group analysis for purchase as a supplement to this study. We are able to provide an asset size breakdown of how your current director compensation package compares to banks of a similar asset size for total director compensation, retainers, board meeting fees, committee meeting fees, stock grants, and benefits. We are also able to provide a customized peer group analysis using 10 to 20 banks that participated in this study (i.e. by region, asset size, or public vs. private). For more information about this analysis or the other Board Compensation services we provide (i.e. board evaluations), please contact Laura Roth at 612-886-1225 or [email protected].
About Blanchard Consulting Group
Blanchard Consulting Group is a national compensation consulting firm with offices in Atlanta, GA and Minneapolis, MN. Our mission is to deliver independent compensation guidance to public and private regional and community banks to help them attract, motivate, and retain their key employees and directors. With an exclusive focus on the banking marketplace, our lead consultants have a unique industry perspective and expertise to offer. Please visit our website (www.blanchardc.com) or contact us at [email protected] to learn more about our company and services.
We would like your feedback to help make this survey even more valuable. Please contact us with any suggestions or questions.
Michael Blanchard Matt Brei Chief Executive Officer President 770-672-6767 952-496-2221 [email protected] [email protected]
I. Participants
2019 Director Compensation Survey Page 2
SURVEY PARTICIPANTS
Asset Size Cuts
The director compensation data was collected and analyzed by asset size, regional location, and ownership status of the responding bank (publicly traded vs. private). Asset breakdowns, where available, are as follows:
All Banks
Under $250 Million
$250 Million to $499 Million
$500 Million to $1 Billion
Greater than $1 Billion
The number of banks and asset sizes for the various asset categories are provided below.
Asset Size (as of 12/31/18) ($Millions)
Asset Size n Average 25th
Percentile 50th
Percentile 75th
Percentile
All Banks 104 1,262 434 821 1,353
<$250M 13 178 179 196 202
$250M-$499M 18 378 325 367 434
$500M-$1B 39 755 592 810 898
>$1B 34 2,726 1,368 1,798 3,100
Geographic Regions
Based on the location of the responding banks, we were able to divide the director compensation data into two regional groups: Central and Coast. Below are lists of the states included in each of the regional breakdowns:
Central: Alabama, Arizona, Arkansas, Colorado, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin, Wyoming
Coast: Alaska, California, Connecticut, Delaware, Florida, Georgia, Guam, Hawaii, Maine, Maryland, Massachusetts, North Carolina, New Hampshire, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, South Carolina, Virginia, Vermont, Washington
Asset Size (as of 12/31/18) ($Millions)
Geographic Region n Average
25th Percentile
50th Percentile
75th Percentile
Central 85 1,369 450 818 1,400
Coast 19 784 336 823 1,100
I. Participants
2019 Director Compensation Survey Page 3
SURVEY PARTICIPANTS (Continued)
Ownership Status
There may be differences in board structure and director compensation depending upon if the bank is publicly traded or privately owned. Where available, we provide comparisons according to the ownership status of the bank—publicly traded (thinly or exchange traded) vs. private—as reported to Blanchard Consulting Group by the participating bank.
Asset Size (as of 12/31/18) ($Millions)
Ownership Status n Average
25th Percentile
50th Percentile
75th Percentile
Public 39 1,496 639 948 2,047
Private 65 1,121 337 655 1,015
I. Participants
2019 Director Compensation Survey Page 4
SURVEY PARTICIPANTS (Continued)
Below is a complete list of the survey participants, asset size as of 12/31/2018 (as provided by the bank), and the state of their headquarters.
Bank Name
Assets (as of
12/31/18) (millions) State Bank Name
Assets (as of
12/31/18) (millions) State Bank Name
Assets (as of
12/31/18) (millions) State Bank Name
Assets (as of
12/31/18) (millions) State
1st Source Bank 6,294 IN Eaton Federal Savings Bank 337 MI InsBank 518 TN The Landrum Company 3,100 MO
Access Bank 533 NE Farmers & Merchants Bank 783 VA Integrity Bank & Trust 202 CO The Ohio Valley Bank Company 1,015 OH
Alerus Financial 2,129 ND Farmers National Banc Corp. 2,329 OH Jackson County Bank 568 IN The State Bank 925 MI
American Bancor, Ltd. 1,827 ND Farmers State Bank 760 IN Lakeside Bancshares, Inc. 199 LA Think Mutual Bank 1,651 MN
American Bank Center 1,426 ND Fidelity Bank 827 LA Landmark National Bank 983 KS Third Coast Bank, SSB 845 TX
American Community Financial, Inc. 546 IL Fifth District Savings Bank 425 LA LCNB Corp 1,637 OH Tradition Capital Bank 750 MN
American Riviera Bank 616 CA First American Bank and Trust 901 LA Level One Bancorp 1,400 MI Truxton Trust 500 TN
Auburn National Bancorporation, Inc. 818 AL First Bankers Trust Company, N.A. 918 IL Lincoln Savings Bank 1,256 IA Two River Community Bank 1,100 NJ
Availa Bank 895 IA First Bankers TrustShares, Inc 930 IL Lisle Savings Bank 508 IL Wayne Savings Community Bank 470 OH
Bank Midwest 927 IA First Chatham Bank 363 GA Newton Federal Bank 309 GA West Shore Bank 450 MI
Bank of Erath 102 LA First Defiance Financial Corp. 3,182 OH Nicolet National Bank 3,100 WI Winnsboro State Bank & Trust Co. 193 LA
Bank of Idaho 334 ID First Farmers and Merchants Bank 1,365 TN North Side Bank and Trust Co. 678 OH
Bank of Tennessee 1,376 TN First Federal Savings Bank 435 IN Pacific Mercantile Bank 1,349 CA
Bank of Zachary 243 LA First Financial Northwest Bank 1,100 WA Peoples Bank 1,732 WA
Beneficial State Bank 1,011 CA First Internet Bank of Indiana 3,200 IN Plumas Bank 823 CA
Capitol Bank 370 WI First Mid-Illinois Bancshares, Inc. 3,840 IL Progressive Bank 563 LA
CapStar Financial Holdings, Inc. 1,964 TN First National Bank Minnesota 211 MN Queensborough National Bank 1,170 GA
Carroll Community Bank 196 MD First National Bank of America 1,796 MI Red River Bank 1,800 LA
CBI Bank & Trust 518 IA First National Bank of Pulaski 853 TN Relyance Bank, N.A. 826 AR
Centera Bank 272 KS First National Bank of Syracuse 341 KS Republic Bank of Chicago 2,015 IL
Central Bancshares, Inc. 879 IA FNBC Bank 464 AR Santa Cruz County Bank 662 CA
Citizens Bank & Trust 322 LA Gemini Bancshares, Inc. 17 CO Sauk Valley Bank & Trust Co. 431 IL
Citizens National Bank of Bossier, NA 969 LA German American Bank 3,930 IN Savings Bank of Mendocino County 1,108 CA
Community First Bank 384 LA GNB Bank 561 IA SB Financial Group, Inc. 948 OH
Community First Bank of Indiana 287 IN Great Southern Bancorp, Inc. 4,700 MO Signature Bank, N.A. 912 OH
Community West Bank 877 CA Greater Community Bank 188 GA Southern Bancorp Bank 1,388 AR
Compeer Financial 20,800 WI Guaranty Bank & Trust Company 202 LA Southern Bancorp, Inc. 163 AR
Cornerstone Bank 225 GA Happy State Bank 3,446 TX Standard Bank, PaSB 977 PA
Cortland Savings and Banking Company 700 OH Hillsdale County National Bank 662 MI State Bank of Lizton 497 IN
Denver Savings Bank 179 IA Hilltop Bank 810 WY Surrey Bank & Trust 309 NC
Dieterich Bank 655 IL Home Bank, N.A. 2,154 LA Synergy Bank 514 LA
