Performance Metrics

The AIP cash payouts are governed by our Executive and Employee Incentive Compensation Policy. For certain executive officers, including our NEOs, any payout is tied to the achievement of certain pre-established financial measures and/or operational goals, including an evaluation of individual performance, which we collectively refer to as the “performance measures”. Individual performance is assessed in consultation with the CEO and reviewed with the CNG Committee (provided that the CEO does not take part in deliberations regarding his own compensation). The performance measures are typically identified and the performance levels are set (i.e. Threshold, Target, Maximum) after the annual budget is approved for the current year by the Board and this is typically completed by the end of the first quarter. The performance measures are intended to closely align with drivers in our strategic plan and other conventional financial metrics, which include earnings per share, return on average assets, net loan and deposit growth, noninterest-bearing deposit growth, and credit quality.