ISABELLA BANK CORPORATION (OTCMKTS:ISBA) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e) On March 11, 2019, the registrant amended and restated the Isabella Bank Corporation and Related Companies Deferred Compensation Plan for Directors (the Plan), with an effective date of January 1, 2019. The Plan was amended and restated for the primary purposes of updating the administration of the Plan and complying with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the final regulations issued thereunder (“Section 409A”). Other terms of the Plan, which have been previously disclosed, were modified, as well.
The Plan is a non-qualified, deferred compensation plan that allows directors to defer receipt of taxable income and thereby defer income taxes and assist in saving for retirement. Under the Plan, each member of the registrant’s Board of Directors, which may include the registrant’s named executive officers, and members of the Boards of Directors of certain affiliated entities, is required to defer receipt of all or any portion (subject to a minimum required deferral of at least 25%, taking into account any purchases of registrant shares made by a director under the registrant’s dividend reinvestment plan) of his or her annual director’s salary (if any), retainer and board of directors and/or committee fees and receive credits to a Plan account. Dollar amounts that are credited to a director’s Plan account are converted on a quarterly basis into stock units of the registrant’s common stock based on the fair market value of a share of registrant common stock as of the relevant valuation date. Stock units credited to a participant’s Plan account are eligible for stock and cash dividends as declared.
Distribution of deferred fees from the Plan occurs when the participant incurs a severance from service or upon the occurrence of certain other events set forth in the Plan. The participant is eligible to receive a lump-sum distribution in the form of shares of registrant common stock of all of the stock units that are then in his or her Plan account, and any unconverted cash will be converted to and rounded up to whole shares of stock and distributed, as well. The Plan does not allow for cash settlement, and therefore, such share-based payment awards qualify for classification as equity. The registrant may use authorized but unissued shares or purchase shares of common stock on the open market to meet its obligations under the Plan.
The foregoing brief description of the Plan is qualified in its entirety by reference to the text of the Plan, a copy of which is attached as Exhibit 10.1.
Section 9 – Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits.
ISABELLA BANK Corp Exhibit
EX-10.1 2 deferredcompensationplanfo.htm EXHIBIT 10.1 Exhibit Exhibit 10.1ISABELLA BANK CORPORATIONAND RELATED COMPANIES DEFERRED COMPENSATION PLANFOR DIRECTORSJanuary 1,…
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About ISABELLA BANK CORPORATION (OTCMKTS:ISBA)
Isabella Bank Corporation is a financial services holding company. The Company’s subsidiary, Isabella Bank, has approximately 30 banking offices located throughout Clare, Gratiot, Isabella, Mecosta, Midland, Montcalm and Saginaw counties. The Company offers a range of banking services to businesses, institutions and individuals. Its lending activities include loans for commercial and agricultural operating and real estate purposes, residential real estate loans and consumer loans. Deposit services offered include checking accounts, savings accounts, certificates of deposit, direct deposits, cash management services, mobile and Internet banking, electronic bill pay services and automated teller machines. The Company also offers full service trust and brokerage services. The Company provides group life, health, accident, disability and other insurance programs, as well as a number of other employee benefit programs.
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