o | Preliminary Proxy Statement |
o | Confidential, For Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
x | Definitive Proxy Statement |
o | Definitive Additional Materials |
o | Soliciting Material Pursuant to §240.14a-12 |
x | No fee required. |
o | Fee computed on the table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
(1) | Title of each class of securities to which transaction applies: |
(2) | Aggregate number of securities to which transaction applies: |
(3) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): |
(4) | Proposed maximum aggregate value of transaction: |
(5) | Total fee paid: |
o | Fee paid previously with preliminary materials: |
(1) | Amount previously paid: |
(2) | Form, Schedule or Registration Statement No.: |
(3) | Filing Party: |
(4) | Date Filed: |
1. | To elect |
2. | To approve a non-binding advisory vote on executive compensation. |
3. | To approve a non-binding advisory vote on the |
4. | To transact such other business as may properly be brought before the meeting or any adjournments thereof. |
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AUDIT COMMITTEE | 25 |
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 26 |
PROPOSALS BY SHAREHOLDERS | 26 |
BOARD NOMINATING PROCESS | 26 |
COMMUNICATION WITH THE BOARD OF DIRECTORS | 27 |
AVAILABILITY OF FORM 10-K REPORT | 28 |
OTHER MATTERS | 28 |
l | Vote |
l | Withhold votes on all of the nominees for Director |
l | Withhold votes for one or more nominees |
l | Vote |
l | Vote |
l | Abstain from voting on the proposal |
l | Vote |
l | Vote |
l | Abstain from voting on the proposal |
Name and Year First Become Director | Age | Positions & Offices Held With Company | Principal Occupation or Employment | ||||
During the Past Five Years and Education | |||||||
Pertaining to Board of Director Qualifications | |||||||
Director Nominees Who Will Serve Until the | |||||||
Michael S. Donovan 2007 - Company 2007 - Bank | 52 | Director | Farmer and President of Donovan & Sons, Ltd., a local Johnson County, Iowa family farm corporation, and partner in PVP1, LLP, a local pork production operation. Mr. Donovan is a graduate of North Iowa Area Community College. | ||||
Thomas J. Gill, D.D.S. 1993 - Company 1993 - Bank | 68 | Director | Dentist - Private Practice in Coralville, Iowa since 1980. Dr. Gill is a graduate of the University of Iowa College of Dentistry. | ||||
Dwight O. Seegmiller 1986 - Company 1986 - Bank | 62 | Director and President | President of the Company and the Bank. Mr. Seegmiller is a graduate of Iowa State University’s Agricultural Business Honors Program and the Stonier Graduate School of Banking at Rutgers University. He joined the Company in 1975 and has been President of the Company since 1986. Prior to 1986, Mr. Seegmiller was the Senior Vice President of Lending. | ||||
Thomas R. Wiele 2012 - Company 2012 - Bank | 62 | Director | President, Dealer and Operator of Wiele Motor Company, located in West Liberty and Columbus Junction, Iowa. |
The Board of Directors unanimously recommends to the Shareholders a vote “FOR” the election of the above-listed persons as Directors for the Company. |
The Board of Directors unanimously recommends that you vote “FOR” the approval, on an advisory basis, of the compensation of our Named Executive Officers as disclosed in the Compensation Discussion and Analysis, the accompanying compensation tables, and the related narrative disclosure. |
The Board of Directors unanimously recommends to the Shareholders a vote “FOR” the non-binding advisory proposal to approve the appointment of the Company’s Independent Registered Public Accounting Firm. |
Positions & Offices Held With Company | Principal Occupation or Employment During the Past Five Years and Education Pertaining to Board of Director Qualifications | |||||
Director Serving Until the 2016 Annual Meeting | ||||||
Michael E. Hodge 2000 - Company 2000 - Bank | 61 | Director | President and shareholder of Hodge Construction Company, an Iowa City, Iowa business. Mr. Hodge obtained a BS in civil engineering from the University of Iowa. | |||
John W. Phelan 2007 - Company 2007 - Bank | Director | Former General Sales Manager with KZIA Z102.9 and KGYM 1600ESPN radio stations (2010 - 2011); formerly Vice President and General Manager of Cedar Rapids Television Company, d/b/a KCRG-TV9 in Cedar Rapids, Iowa, the local ABC affiliate. | ||||
Sheldon E. Yoder, D.V.M. 1997 - Company 1997 - bank | Director | President and shareholder of Kalona Veterinary Clinic, P.C., located in Kalona, Iowa. Dr. Yoder is a graduate of the Iowa State University College of Veterinary Medicine. He has been President of Kalona Veterinary Clinic since 1978. |
Name and Year First Become Director | Age | Positions & Offices Held With Company | Principal Occupation or Employment | |||
During the Past Five Years and Education | ||||||
Pertaining to Board of Director Qualifications | ||||||
Emily A. Hughes 2012 - Company 2012 - Bank | Director | Professor, | ||||
James A. Nowak 2004 - Company 2004 - Bank | Director | Partner - McGladrey & Pullen, LLP (Retired 2004), Cedar Rapids, Iowa. Mr. Nowak is a graduate of the University of Wisconsin and a certified public accountant. | ||||
Theodore H. Pacha 1990 - Company 1990 - Bank | Director and Vice President | President and owner of THEO Resources LLC, a business investment and consulting company in Iowa City, Iowa, May 1999 to present. Mr. Pacha was previously the President and co-owner of Duffy’s Collectible Cars in Cedar Rapids, Iowa. Mr. Pacha previously founded and owned Hawkeye Medical Supply, Inc., a medical supplies company, located in Iowa City, Iowa, until its sale in 1998. | ||||
Ann Marie Rhodes 1993 - Company 1993 - Bank | Director | The University of Iowa – Clinical Associate Professor of Nursing and Instructor College of Law. Ms. Rhodes obtained a nursing degree from The College of Saint Teresa and a masters in nursing from the University of Iowa. In addition, Ms. Rhodes received her law degree from the University of Iowa College of Law. |
Compensation Item | Company | Bank | ||||||
Annual Retainer (paid quarterly): | ||||||||
Chairperson of the Board | N/A | $ | 15,000 | |||||
Board Member | N/A | 11,000 | ||||||
Meeting Fees: | ||||||||
Board Meetings | $ | 300 | 500 | |||||
Committee: | ||||||||
Audit | - | 300 | ||||||
Compensation and Incentive Stock | - | N/A | ||||||
Employee Stock Ownership Plan / Profit Sharing | N/A | 300 | ||||||
Loan | N/A | 300 | ||||||
Trust | N/A | 300 |
Compensation Item | Company | Bank | ||||
Annual Retainer (paid quarterly): | ||||||
Chairperson of the Board | N/A | $ | 16,800 | |||
Board Member | N/A | 12,600 | ||||
Meeting Fees: | ||||||
Board Meetings | $300 | 500 | ||||
Committee: | ||||||
Audit | N/A | 300 | ||||
Compensation and Incentive Stock | N/A | N/A | ||||
Employee Stock Ownership Plan / Profit Sharing | N/A | 300 | ||||
Loan | N/A | 300 | ||||
Trust | N/A | 300 |
Fees | Non-Equity | Change in Pension | ||||||||||||||||||||||||||
Earned or | Stock | Option | Incentive Plan | Value and Nonqualified | All Other | |||||||||||||||||||||||
Paid in | Awards | Awards | Compensation | Deferred Compensation | Compensation | |||||||||||||||||||||||
Name | Cash ($) | ($) | ($)(1)(2) | ($) | Earnings ($) | ($) | Total ($) | |||||||||||||||||||||
Willis M. Bywater | $ | 8,667 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 8,667 | ||||||||||||||
Michael S. Donovan | 26,900 | - | 2,548 | - | - | - | 29,448 | |||||||||||||||||||||
Thomas J. Gill, D.D.S. | 24,200 | - | - | - | - | - | 24,200 | |||||||||||||||||||||
Michael E. Hodge | 26,000 | - | - | - | - | - | 26,000 | |||||||||||||||||||||
Emily A. Hughes | 16,850 | - | 6,139 | - | - | - | 22,989 | |||||||||||||||||||||
James A. Nowak | 26,000 | - | - | - | - | - | 26,000 | |||||||||||||||||||||
Theodore H. Pacha | 27,200 | - | - | - | - | - | 27,200 | |||||||||||||||||||||
John W. Phelan | 25,400 | - | 2,548 | - | - | - | 27,948 | |||||||||||||||||||||
Ann Marie Rhodes | 26,600 | - | - | - | - | - | 26,600 | |||||||||||||||||||||
Ronald E. Stutsman | 9,100 | - | - | - | - | - | 9,100 | |||||||||||||||||||||
Thomas R. Wiele | 17,650 | - | 6,139 | - | - | - | 23,789 | |||||||||||||||||||||
Sheldon E. Yoder, D.V.M. | 24,800 | - | - | - | - | - | 24,800 |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings ($) | All Other Compensation ($) | Total ($) | |||||||||||||||||||||
Michael S. Donovan | $ | 28,050 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 28,050 | ||||||||||||||
Thomas J. Gill, D.D.S. | 25,950 | — | — | — | — | — | 25,950 | |||||||||||||||||||||
Michael E. Hodge | 29,250 | — | — | — | — | — | 29,250 | |||||||||||||||||||||
Emily A. Hughes | 29,550 | — | — | — | — | — | 29,550 | |||||||||||||||||||||
James A. Nowak | 27,750 | — | — | — | — | — | 27,750 | |||||||||||||||||||||
Theodore H. Pacha | 29,100 | — | — | — | — | — | 29,100 | |||||||||||||||||||||
John W. Phelan | 28,050 | — | — | — | — | — | 28,050 | |||||||||||||||||||||
Ann Marie Rhodes | 28,150 | — | — | — | — | — | 28,150 | |||||||||||||||||||||
Thomas R. Wiele | 25,950 | — | — | — | — | — | 25,950 | |||||||||||||||||||||
Sheldon E. Yoder, D.V.M. | 25,650 | — | — | — | — | — | 25,650 |
Name and | Total Shares | Sole Voting | Shared Voting | Percent | ||||||||||||
Address of | Beneficially | and Investment | and Investment | of | ||||||||||||
Beneficial Owner | Owned | Power | Power | Class | ||||||||||||
Hills Bank and Trust Company, as trustee of the Hills Bank and Trust Company Employee Stock Ownership Plan (the “ESOP”) 131 Main Street Hills, Iowa 52235 | 462,768 | 23,990 | (1) | 438,778 | (2) | 9.77 | % |
Name and Address of Beneficial Owner | Total Shares Beneficially Owned | Sole Voting and Investment Power | Shared Voting and Investment Power | Percent of Class | ||||||||
Hills Bank and Trust Company, as trustee of the Hills Bank and Trust Company Employee Stock Ownership Plan (the “ESOP”) 131 Main Street Hills, Iowa 52235 | 426,672 | 7,628 | (1) | 419,044 | (2) | 9.10 | % |
(1) | Consists of shares of Company Common Stock not allocated to the accounts of employees of the Bank who are eligible to participate in the ESOP. These shares were purchased from the Company in 2011 and will be released to participants over a five-year period ending in 2015. |
(2) | Consists of shares of Company Common Stock allocated to the accounts of employees of the Bank who are eligible to participate in the ESOP. Employees are entitled to direct the trustee how to vote shares allocated to their accounts. |
Total Shares | Sole Voting | Shared Voting | Percent | |||||||||||||
Beneficially | and Investment | and Investment | of | |||||||||||||
Name | Owned | Power | Power | Class (4) | ||||||||||||
Directors | ||||||||||||||||
Michael S. Donovan | 11,275 | (1) | 5,877 | 5,398 | 0.24 | |||||||||||
Thomas J. Gill, D.D.S. | 10,657 | 10,128 | 529 | 0.22 | ||||||||||||
Michael E. Hodge | 9,968 | (1) | 7,268 | 2,700 | 0.21 | |||||||||||
Emily A. Hughes | 119,312 | (3) | 19,312 | 100,000 | 2.51 | |||||||||||
James A. Nowak | 5,500 | (1) | 5,500 | - | 0.12 | |||||||||||
Theodore H. Pacha | 13,090 | 13,090 | - | 0.28 | ||||||||||||
John W. Phelan | 5,664 | (1) | 2,290 | 3,374 | 0.12 | |||||||||||
Ann Marie Rhodes | 250 | 250 | - | 0.01 | ||||||||||||
Dwight O. Seegmiller | 125,980 | (2) | 77,778 | 48,202 | 2.65 | |||||||||||
Thomas R. Wiele | 840 | 600 | 240 | 0.02 | ||||||||||||
Sheldon E. Yoder, D.V.M. | 10,573 | 9,768 | 805 | 0.22 | ||||||||||||
Non-Director Executive Officers | ||||||||||||||||
Shari J. DeMaris | 1,761 | (2) | 1,494 | 267 | 0.04 | |||||||||||
Timothy D. Finer | 18,626 | (2) | 6,000 | 12,626 | 0.39 | |||||||||||
Marty J. Maiers | 23,857 | (2) | 4,100 | 19,757 | 0.50 | |||||||||||
Steven R. Ropp | 17,976 | (2) | 7,440 | 10,536 | 0.38 | |||||||||||
Bradford C. Zuber | 22,063 | (2) | 5,362 | 16,701 | 0.46 | |||||||||||
All Directors and Non-Director Executive | 397,392 | (2) | 176,257 | 221,135 | 8.37 | |||||||||||
Officers as a Group (16 persons) |
Name | Total Shares Beneficially Owned | Sole Voting and Investment Power | Shared Voting and Investment Power | Percent of Class (4) | |||||||||
Directors | |||||||||||||
Michael S. Donovan | 11,329 | (1) | 5,877 | 5,452 | 0.24 | % | |||||||
Thomas J. Gill, D.D.S. | 10,657 | 10,128 | 529 | 0.23 | |||||||||
Michael E. Hodge | 9,968 | 7,268 | 2,700 | 0.21 | |||||||||
Emily A. Hughes | 119,312 | (3) | 19,312 | 100,000 | 2.54 | ||||||||
James A. Nowak | 5,510 | 5,510 | — | 0.12 | |||||||||
Theodore H. Pacha | 13,090 | 13,090 | — | 0.28 | |||||||||
John W. Phelan | 5,664 | (1) | 2,290 | 3,374 | 0.12 | ||||||||
Ann Marie Rhodes | 250 | 250 | — | 0.01 | |||||||||
Dwight O. Seegmiller | 126,808 | (2) | 82,172 | 44,636 | 2.70 | ||||||||
Thomas R. Wiele | 840 | 600 | 240 | 0.02 | |||||||||
Sheldon E. Yoder, D.V.M. | 11,500 | 11,500 | — | 0.24 | |||||||||
Non-Director Executive Officers | |||||||||||||
Shari J. DeMaris | 2,952 | (2) | 2,244 | 708 | 0.06 | ||||||||
Timothy D. Finer | 18,607 | (2) | 5,500 | 13,107 | 0.40 | ||||||||
Marty J. Maiers | 23,540 | (2) | 4,170 | 19,370 | 0.50 | ||||||||
Steven R. Ropp | 17,341 | (2) | 7,440 | 9,901 | 0.37 | ||||||||
Bradford C. Zuber | 22,159 | (2) | 8,209 | 13,950 | 0.47 | ||||||||
All Directors and Non-Director Executive Officers as a Group (16 persons) | 399,527 | (2) | 185,560 | 213,967 | 8.51 |
(1) | This figure includes shares subject to currently exercisable stock options granted pursuant to the 2010 Stock Option and Incentive Plan. For Directors, the options will expire ten years after the grant date or two years after the Director’s term of service on the Board of Directors of the Company ends, whichever occurs first. For Non-Director Executive Officers, the options expire ten years after the grant date. Details of the stock options are as follows: |
Name | Grant Date | Number of Options | Exercise Price | Expiration Date | |||||||
Michael S. Donovan | 5/1/2007 | 2,290 | $ | 52.00 | 5/1/2017 | ||||||
John W. Phelan | 5/1/2007 | 2,290 | 52.00 | 5/1/2017 |
Number | Exercise | Expiration | |||||||||
Name | Grant Date | of Options | Price | Date | |||||||
Michael S. Donovan | 05/01/07 | 2,290 | $ | 52.00 | 05/01/17 | ||||||
Michael E. Hodge | 05/17/04 | 2,940 | 34.50 | 05/17/14 | |||||||
James A. Nowak | 10/12/04 | 720 | 36.25 | 12/12/14 | |||||||
John W. Phelan | 05/01/07 | 2,290 | 52.00 | 05/01/17 |
(2) | This figure includes shares held by the Bank’s ESOP which have been allocated to the executive officers for voting purposes as follows: |
Name | ESOP Shares | |||
Shari J. DeMaris | 708 | |||
Timothy D. Finer | 13,107 | |||
Marty J. Maiers | 19,370 | |||
Steven R. Ropp | 9,901 | |||
Dwight O. Seegmiller | 44,636 | |||
Bradford C. Zuber | 13,950 |
(3) | This figure includes 100,000 shares owned in a limited partnership of which Director Hughes is a general partner. Ms. Hughes has shared voting and investment power in the limited partnership. |
(4) | Includes, for each such person, shares that are deemed to be beneficially owned by such person (a) because such shares are subject to options currently exercisable by such person or (b) because such shares are held by the ESOP and have been allocated to such person with shared voting power, as described in Notes 1, 2 and 3. |
l | provide a pay-for-performance policy that differentiates compensation amounts based upon corporate and individual performance; |
l | provide compensation opportunities comparable to those offered by other Iowa-based financial institutions and Midwest banks of similar asset size, thus allowing the Bank to compete for and retain talented executives who are essential to the long-term success of the Company and the Bank; |
l | align the interest of the officers with the long-term interest of the Company’s shareholders through the ownership of Company Common Stock; and |
l | maintain a corporate environment which encourages stability and long-term focus for the primary constituencies of the Company, including shareholders, employees, customers, regulatory agencies and the communities it serves. |
l | Reviewed the financial performance of the Company based on a comparison of actual net income to budgeted and prior year net income; |
l | Reviewed leadership and quality of contribution to the strategic direction of the Company; |
l | Reviewed peer performance data versus the Company and discussed goals for |
l | Reviewed overall contributions by the Company to the communities it serves; |
l | Reviewed contributions to the management of the Company’s employees and daily operations, the administration of the Company’s policies and procedures and enhancement of long-term relationships with customers; |
l | Reviewed the current total compensation package for the Company Named Executive Officers to determine market competitiveness; |
l | Performed an evaluation of |
l | Recommended annual salary adjustments. |
Members of the Compensation and Incentive Stock Committee | |
Michael S. Donovan | Theodore H. Pacha, Chairperson |
Thomas J. Gill, D.D.S. | John W. Phelan |
Michael E. Hodge | Ann Marie Rhodes |
Emily A. Hughes | Thomas R. Wiele |
James A. Nowak | Sheldon E. Yoder, D.V.M. |
l | amounts paid in previous years; |
l | amounts that may be paid in future years, including amounts that will be paid only upon the occurrence of certain events, such as a change in control of the Company; |
l | amounts we paid to the Named Executive Officers which might not be considered “compensation” (for example, distributions of deferred compensation earned in prior years, and at-market earnings, dividends, or interest on such amounts); and |
l | an assumed value for share-based compensation equal to the fair value of the grant as presumed under accounting regulations, even though such value presumes the option will not be forfeited or exercised before the end of its 10-year life, and even though the actual realization of cash from the award depends on whether our stock price appreciates above its price on the date of grant, whether the executive will continue his employment with us, and when the executive chooses to exercise the option. |
Change in | ||||||||||||||||||||||||||||||
Pension Value and | ||||||||||||||||||||||||||||||
Name / Age / | Nonqualified Deferred | All | ||||||||||||||||||||||||||||
Position with | Stock | Option | Compensation | Other | ||||||||||||||||||||||||||
Company for last five | Salary | Bonus | Awards | Awards | Earnings | Compensation | Total | |||||||||||||||||||||||
years (1) | Year | ($) | ($) | ($) | ($) | ($) | ($)(8) | ($) | ||||||||||||||||||||||
Company | ||||||||||||||||||||||||||||||
Dwight O. | 2012 | $ | 392,656 | (2) | $ | 16,766 | (2)(4) | $ | - | $ | - | $ | 9,181 | (7) | $ | 22,500 | $ | 441,103 | ||||||||||||
Seegmiller, | ||||||||||||||||||||||||||||||
60, President | 2011 | 380,656 | (2) | 16,091 | (2)(4) | - | - | 60,585 | (7) | 22,050 | 479,382 | |||||||||||||||||||
and Principal | ||||||||||||||||||||||||||||||
Executive | 2010 | 370,000 | (2) | 16,200 | (2)(4) | - | - | 11,759 | (7) | 24,500 | 422,459 | |||||||||||||||||||
Officer | ||||||||||||||||||||||||||||||
Shari J. DeMaris | 2012 | 135,000 | (3) | - | (2) | 1,150 | (5) | 1,724 | (6) | - | 13,477 | 151,351 | ||||||||||||||||||
Secretary, | ||||||||||||||||||||||||||||||
43, Treasurer | ||||||||||||||||||||||||||||||
and Principal | ||||||||||||||||||||||||||||||
Financial | ||||||||||||||||||||||||||||||
Officer | ||||||||||||||||||||||||||||||
James G. Pratt | 2012 | 268,791 | (2)(3) | 4,379 | (2)(4) | - | - | 2,112 | (7) | 22,500 | 297,782 | |||||||||||||||||||
Secretary, | ||||||||||||||||||||||||||||||
64, Treasurer | 2011 | 288,064 | (2) | 6,831 | (2)(4) | - | - | 14,133 | (7) | 22,050 | 331,078 | |||||||||||||||||||
and Principal | ||||||||||||||||||||||||||||||
Financial | 2010 | 280,000 | (2) | 6,300 | (2)(4) | - | - | 2,719 | (7) | 24,500 | 313,519 | |||||||||||||||||||
Officer | ||||||||||||||||||||||||||||||
Bank | ||||||||||||||||||||||||||||||
Timothy D. Finer, | 2012 | 148,000 | - | - | - | - | 124,735 | (9) | 272,735 | |||||||||||||||||||||
51, Senior Vice | ||||||||||||||||||||||||||||||
President, | 2011 | 144,000 | - | - | - | - | 118,393 | (9) | 262,393 | |||||||||||||||||||||
Director of | ||||||||||||||||||||||||||||||
Real Estate | 2010 | 139,700 | - | - | - | - | 15,313 | (9) | 155,013 | |||||||||||||||||||||
Lending | ||||||||||||||||||||||||||||||
Marty J. Maiers, | 2012 | 172,000 | - | - | - | - | 89,114 | (9) | 261,114 | |||||||||||||||||||||
55, Senior Vice | ||||||||||||||||||||||||||||||
President, | 2011 | 168,000 | - | - | - | - | 58,334 | (9) | 226,334 | |||||||||||||||||||||
Director of | ||||||||||||||||||||||||||||||
Retail Banking | 2010 | 163,200 | - | - | - | - | 49,905 | (9) | 213,105 | |||||||||||||||||||||
Steven R. Ropp, | 2012 | 148,000 | - | - | - | - | 35,871 | (9) | 183,871 | |||||||||||||||||||||
52, Senior Vice | ||||||||||||||||||||||||||||||
President, | 2011 | 144,000 | - | - | - | - | 49,063 | (9) | 193,063 | |||||||||||||||||||||
Director of | ||||||||||||||||||||||||||||||
Commercial | 2010 | 139,700 | - | - | - | - | 43,314 | (9) | 183,014 | |||||||||||||||||||||
Banking | ||||||||||||||||||||||||||||||
Bradford C. Zuber, | 2012 | 168,000 | - | - | - | - | 16,723 | (9) | 184,723 | |||||||||||||||||||||
56, Senior Vice | ||||||||||||||||||||||||||||||
President, | 2011 | 164,000 | - | - | - | - | 45,454 | (9) | 209,454 | |||||||||||||||||||||
Director of | ||||||||||||||||||||||||||||||
Trust Services | 2010 | 159,100 | - | - | - | - | 27,286 | (9) | 186,386 |
Name / Age / Position with Company for last five years (1) | Year | Salary ($) | Bonus ($) | Stock Awards ($) | Option Awards ($) | All Other Compensation ($)(6) | Total ($) | |||||||||||||||||||
Company | ||||||||||||||||||||||||||
Dwight O. Seegmiller | 2014 | $ | 405,656 | (2) | $ | 17,166 | (3) | $ | — | $ | — | $ | 23,580 | $ | 446,402 | |||||||||||
62, President and | 2013 | 405,656 | (2) | 17,616 | (3) | — | — | 23,085 | 446,357 | |||||||||||||||||
Principal Executive | 2012 | 392,656 | (2) | 16,766 | (3) | — | — | 22,635 | 432,057 | |||||||||||||||||
Officer | ||||||||||||||||||||||||||
Shari J. DeMaris | 2014 | 205,000 | (2) | 1 | (3) | 57,000 | (4) | — | 20,669 | 282,670 | ||||||||||||||||
45, Secretary, | 2013 | 190,000 | (2) | 2 | (3) | — | — | 19,112 | 209,114 | |||||||||||||||||
Treasurer and | 2012 | 135,000 | — | (3) | 34,500 | (4) | 37,905 | (5) | 13,612 | 221,017 | ||||||||||||||||
Principal Financial | ||||||||||||||||||||||||||
Officer | ||||||||||||||||||||||||||
Bank | ||||||||||||||||||||||||||
Timothy D. Finer, | 2014 | 162,000 | — | — | — | 16,264 | (7) | 178,264 | ||||||||||||||||||
53, Senior Vice | 2013 | 153,920 | — | — | — | 124,441 | (7) | 278,361 | ||||||||||||||||||
President, Director | 2012 | 148,000 | — | — | — | 124,870 | (7) | 272,870 | ||||||||||||||||||
of Real Estate | ||||||||||||||||||||||||||
Lending | ||||||||||||||||||||||||||
Marty J. Maiers, | 2014 | 184,800 | — | — | — | 18,576 | (7) | 203,376 | ||||||||||||||||||
57, Senior Vice | 2013 | 178,880 | — | — | — | 43,505 | (7) | 222,385 | ||||||||||||||||||
President, Director | 2012 | 172,000 | — | — | — | 89,249 | (7) | 261,249 | ||||||||||||||||||
of Retail Banking | ||||||||||||||||||||||||||
Steven R. Ropp, | 2014 | 162,000 | — | — | — | 16,259 | (7) | 178,259 | ||||||||||||||||||
54, Senior Vice | 2013 | 153,920 | — | — | — | 36,555 | (7) | 190,475 | ||||||||||||||||||
President, Director | 2012 | 148,000 | — | — | — | 36,006 | (7) | 184,006 | ||||||||||||||||||
of Commercial | ||||||||||||||||||||||||||
Banking | ||||||||||||||||||||||||||
Bradford C. Zuber, | 2014 | 181,500 | — | — | — | 18,212 | 199,712 | |||||||||||||||||||
58, Senior Vice | 2013 | 174,720 | — | — | — | 17,508 | 192,228 | |||||||||||||||||||
President, Director | 2012 | 168,000 | — | — | — | 16,861 | 184,861 | |||||||||||||||||||
of Trust Services |
(1) | Mr. Seegmiller, a Named Executive Officer of the Company, has held his position for the past five years. |
(2) | Compensation deferred pursuant to the Company’s deferred compensation plan is included in salary and bonus totals. |
Consists of additional cash compensation paid in lieu of contributions to the ESOP and the Hills Bank and Trust Company Profit Sharing Plan (the “Profit Sharing Plan”) that could not be made by the Bank because of Internal Revenue Code limits |
(4) | This figure represents |
(5) | This figure represents the compensation expense of the option award granted to Ms. DeMaris computed in accordance with ASC 718. |
For each of the Company Named Executive Officers, the figures shown consist of contributions in the following amounts made by the Bank to the Profit Sharing Plan, ESOP and |
Defined Contribution Profit Sharing Plan | Employee Stock Ownership Plan | 401(k) Plan | Life Insurance and ADD Premiums | Total All Other Compensation | ||||||||||||||||
Company | ||||||||||||||||||||
Dwight O. Seegmiller | ||||||||||||||||||||
2014 | $ | — | $ | 23,400 | $ | — | $ | 180 | $ | 23,580 | ||||||||||
2013 | — | 22,950 | — | 165 | 23,115 | |||||||||||||||
2012 | — | 22,500 | — | 165 | 22,665 | |||||||||||||||
Shari J. DeMaris | ||||||||||||||||||||
2014 | — | 18,440 | 2,049 | 180 | 20,669 | |||||||||||||||
2013 | — | 17,079 | 1,898 | 165 | 19,142 | |||||||||||||||
2012 | — | 12,129 | 1,348 | 165 | 13,642 | |||||||||||||||
Bank | ||||||||||||||||||||
Timothy D. Finer | ||||||||||||||||||||
2014 | — | 14,475 | 1,608 | 180 | 16,263 | |||||||||||||||
2013 | — | 13,776 | 1,531 | 165 | 15,472 | |||||||||||||||
2012 | — | 13,262 | 1,473 | 165 | 14,900 | |||||||||||||||
Marty J. Maiers | ||||||||||||||||||||
2014 | — | 16,556 | 1,840 | 180 | 18,576 | |||||||||||||||
2013 | — | 15,980 | 1,776 | 165 | 17,921 | |||||||||||||||
2012 | — | 15,415 | 1,713 | 165 | 17,293 | |||||||||||||||
Steven R. Ropp | ||||||||||||||||||||
2014 | — | 14,471 | 1,608 | 180 | 16,259 | |||||||||||||||
2013 | — | 13,750 | 1,528 | 165 | 15,443 | |||||||||||||||
2012 | — | 13,251 | 1,472 | 165 | 14,888 | |||||||||||||||
Bradford C. Zuber | ||||||||||||||||||||
2014 | — | 16,253 | 1,806 | 180 | 18,239 | |||||||||||||||
2013 | — | 15,608 | 1,734 | 165 | 17,507 | |||||||||||||||
2012 | — | 15,051 | 1,672 | 165 | 16,888 |
Defined | Employee Stock | Total | ||||||||||||||
Contribution Profit | Ownership | 401(k) | All Other | |||||||||||||
Sharing Plan | Plan | Plan | Compensation | |||||||||||||
Company | ||||||||||||||||
Dwight O. Seegmiller | ||||||||||||||||
2012 | $ | - | $ | 22,500 | $ | - | $ | 22,500 | ||||||||
2011 | - | 22,050 | - | 22,050 | ||||||||||||
2010 | - | 24,500 | - | 24,500 | ||||||||||||
Shari J. DeMaris | ||||||||||||||||
2012 | - | 12,129 | 1,348 | 13,477 | ||||||||||||
James G. Pratt | ||||||||||||||||
2012 | - | 22,500 | - | 22,500 | ||||||||||||
2011 | - | 22,050 | - | 22,050 | ||||||||||||
2010 | - | 24,500 | - | 24,500 | ||||||||||||
Bank | ||||||||||||||||
Timothy D. Finer | ||||||||||||||||
2012 | - | 13,262 | 1,473 | 14,735 | ||||||||||||
2011 | - | 12,954 | 1,439 | 14,393 | ||||||||||||
2010 | - | 13,921 | 1,392 | 15,313 | ||||||||||||
Marty J. Maiers | ||||||||||||||||
2012 | - | 15,415 | 1,713 | 17,128 | ||||||||||||
2011 | - | 15,056 | 1,678 | 16,734 | ||||||||||||
2010 | - | 16,258 | 1,626 | 17,884 | ||||||||||||
Steven R. Ropp | ||||||||||||||||
2012 | - | 13,251 | 1,472 | 14,723 | ||||||||||||
2011 | - | 12,954 | 1,439 | 14,393 | ||||||||||||
2010 | - | 13,921 | 1,393 | 15,314 | ||||||||||||
Bradford C. Zuber | ||||||||||||||||
2012 | - | 15,051 | 1,672 | 16,723 | ||||||||||||
2011 | - | 14,743 | 1,638 | 16,381 | ||||||||||||
2010 | - | 15,852 | 1,585 | 17,437 |
(7) | For each of the Named Executive Officers, the figures shown include the gain on stock options exercised detailed as follows: |
Gain on Stock | ||||||
Name | Year | Options Exercised ($) | ||||
Timothy D. Finer | 2012 | $ | 110,000 | |||
2011 | 104,000 | |||||
Marty J. Maiers | 2012 | 71,986 | ||||
2011 | 41,600 | |||||
2010 | 32,021 | |||||
Steven R. Ropp | 2012 | 21,148 | ||||
2011 | 34,670 | |||||
2010 | 28,000 | |||||
Bradford C. Zuber | 2011 | 29,073 | ||||
2010 | 9,849 |
Name | Year | Gain on Stock Options Exercised ($) | ||||
Timothy D. Finer | 2014 | $ | — | |||
2013 | 109,000 | |||||
2012 | 110,000 | |||||
Marty J. Maiers | 2014 | — | ||||
2013 | 25,614 | |||||
2012 | 71,986 | |||||
Steven R. Ropp | 2014 | — | ||||
2013 | 21,142 | |||||
2012 | 21,148 |
All Other | All Other | Exercise or | Grant Date | |||||||||||||||||||||||||||||||||||||||
Awards: # of | Option Awards: | Base Price | Fair Value | |||||||||||||||||||||||||||||||||||||||
Estimated Future Payments Under | Estimated Future Payments Under | Shares of | # of Securities | of Option | of Stock | |||||||||||||||||||||||||||||||||||||
Grant | Non-Equity Incentive Plan Awards | Equity Incentive Plan Awards | Stock or | Underlying | Awards | & Option | ||||||||||||||||||||||||||||||||||||
Name | Date | Threshold ($) | Target ($) | Maximum ($) | Threshold (#) | Target (#) | Maximum (#) | Units (#) | Options (#) | ($/share) | Awards ($) | |||||||||||||||||||||||||||||||
Shari J. | 10/9/2012 | $ | - | $ | - | $ | - | - | - | - | 500 | 1,500 | $ | 69.00 | $ | 69.00 | ||||||||||||||||||||||||||
DeMaris |
All Other Awards: | |||||||||||||||||||||||||||||||||||||
Estimated Future Payments Under Non-Equity Incentive Plan Awards | Estimated Future Payments Under Equity Incentive Plan Awards | # of Shares of Stock or | # of Securities | Exercise or Base Price of Option | Grant Date Fair Value of Stock | ||||||||||||||||||||||||||||||||
Name | Grant Date | Threshhold ($) | Target ($) | Maximum ($) | Threshhold (#) | Target (#) | Maximum (#) | Units (#) | Underlying Options (#) | Awards($/share) | Options and Awards ($) | ||||||||||||||||||||||||||
Shari J. DeMaris | 04/08/14 | $ | — | $ | — | $ | — | — | — | — | 750 | — | $ | — | $ | 57,000 |
Equity Incentive | |||||||||||||||||||||||||||||||||
Equity Incentive | Equity Incentive | Plan Awards: | |||||||||||||||||||||||||||||||
Plan Awards | Market | Plan Awards: | Market or Payout | ||||||||||||||||||||||||||||||
# of | # of | # of | Value of | # of Unearned | Value of Unearned | ||||||||||||||||||||||||||||
# of | Securities | Securities | Shares or | Shares or | Shares, Units | Shares, Units | |||||||||||||||||||||||||||
Securities | Underlying | Underlying | Units of Stock | Units of | or Other | or Other | |||||||||||||||||||||||||||
Underlying | Unexercisable | Unexercised | Option | Option | That Have | Stock that | Rights That | Rights That | |||||||||||||||||||||||||
Options (#) | Options (#) | Unearned | Exercise | Exercise | Not Been | Have Not | Have Not | Have Not | |||||||||||||||||||||||||
Name | Exercisable | Unexercisable | Options (#) | Price ($) | Date | Vested (#) | Vested ($) | Vested (#) | Vested ($) | ||||||||||||||||||||||||
Shari J. | - | 1,500 | - | $ | 69.00 | 10/09/22 | - | - | 750 | $ | 52,500 | ||||||||||||||||||||||
DeMaris | |||||||||||||||||||||||||||||||||
Timothy D. | 3,000 | - | - | 33.67 | 12/31/13 | - | - | - | - | ||||||||||||||||||||||||
Finer | |||||||||||||||||||||||||||||||||
Marty J. | 630 | - | - | 29.33 | 01/07/13 | - | - | 500 | 35,000 | ||||||||||||||||||||||||
Maiers | |||||||||||||||||||||||||||||||||
Steven R. | 520 | - | - | 29.33 | 01/07/13 | - | - | 500 | 35,000 | ||||||||||||||||||||||||
Ropp |
Option Awards | Stock Awards | ||||||||||||||||||||||||||||
Name | # of Securities Underlying Options (#) Exercisable | # of Securities Underlying Unexercisable Options (#) Unexercisable | Equity Incentive Plan Awards # of Securities Underlying Unexercised Unearned Options (#) | Option Exercise Price ($) | Option Exercise Date | # of Shares or Units of Stock That Have Not Been Vested (#) | Market Value of Shares or Units of Stock that Have Not Vested ($) | Equity Incentive Plan Awards: # of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) | ||||||||||||||||||||
Shari J. DeMaris | — | 1,500 | — | $ | 69.00 | 10/09/22 | 1,250 | $ | 103,125 | — | $ | — |
Option Awards | Stock Awards | |||||||||||||||
Number of Shares | Value Realized on | Number of Shares | Value Realized on | |||||||||||||
Name | Acquired on Exercise (#) | Exercise ($) | Acquired on Vesting (#) | Vesting ($) | ||||||||||||
Timothy D. Finer | 3,000 | $ | 110,000 | - | $ | - | ||||||||||
Marty J. Maiers | 1,770 | 71,986 | - | - | ||||||||||||
Steven R. Ropp | 520 | 21,148 | - | - |
Executive | Registrant | Aggregate | Aggregate Withdrawals/ | Aggregate | |||||||||||||
Contributions | Contributions | Earnings | Distributions | Balance at | |||||||||||||
in 2012 ($)(1) | in 2012 ($)(1) | in 2012 ($)(2) | during 2012 ($) | December 31, 2012 ($) | |||||||||||||
Dwight O. Seegmiller | $ | 39,243 | $ | 16,766 | $ | 348,627 | None | $ | 3,525,893 | ||||||||
Shari J. DeMaris | - | - | - | None | - | ||||||||||||
James G. Pratt | 16,127 | 4,379 | 82,217 | None | 835,864 |
Name | Executive Contributions in 2014 ($)(1) | Registrant Contributions in 2014 ($)(1) | Aggregate Earnings in 2014 ($)(2) | Aggregate Withdrawals/ Distributions during 2014 ($) | Aggregate Balance at December 31, 2014 ($) | |||||||||||||
Dwight O. Seegmiller | $ | 40,595 | $ | 17,166 | $ | 454,843 | None | $ | 4,407,820 | |||||||||
Shari J. DeMaris | 10,245 | 1 | 944 | None | 15,118 |
(1) | The amounts included in the Executive Contributions and Registrant Contributions columns are also included in the “Salary” column and the “Bonus” columns, respectively, in the Summary Compensation Table. Amounts shown as Executive Contributions represent voluntary salary deferral elections by the named executive. |
(2) | Amounts included in this column of |
l | reviewed and discussed the Company’s audited financial statements as of and for the year ended December 31, |
l | discussed with BKD LLP the matters required to be discussed by |
l | received and reviewed the written disclosures and letter from BKD LLP required by the applicable requirements of the Public Company Accounting Oversight Board regarding the independent accountant’s communications with the Audit Committee concerning independence and we have discussed with the auditors the auditors’ independence. |
Audit Committee | |
James A. Nowak, Chairperson | |
John W. Phelan |
�� | Years Ended December 31, | |||||||||||||||
2012 | 2011 | Years Ended December 31, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Audit fees (1) | $ | 211,050 | $ | 227,000 | $ | 215,500 | $ | 210,600 | ||||||||
Tax fees (2) | 25,300 | 15,650 | 26,900 | 26,100 | ||||||||||||
All other fees (3) | 22,500 | - | ||||||||||||||
Total Fees | $ | 258,850 | $ | 242,650 | $ | 242,400 | $ | 236,700 |
(1) | Audit fees related to the audit of the Company’s annual financial statements, internal control over financial reporting conducted in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 and services related to evaluation of the Company’s internal controls as required by the Federal Deposit Insurance Corporation Improvement Act, as amended, for the fiscal years |
(2) | Tax fees generally related to professional service rendered for tax compliance, tax advice and tax planning. |
Hills Bancorporation | |
Board of Directors | |
c/o Treasurer | |
131 Main Street | |
Hills, IA 52235 |
By Order of the Board of Directors | |
/s/ Dwight O. Seegmiller | |
March | Dwight O. Seegmiller |
Hills, Iowa | President and CEO |