Fidelity D & D Bancorp, Inc., a Pennsylvania-based commercial bank, has disclosed new compensatory arrangements for a key executive, according to a recent 8-K filing with the Securities and Exchange Commission. The bank entered into a supplemental executive retirement plan (SERP) and a split dollar life insurance agreement with Ruth Turkington, the Executive Vice President and Chief Consumer Banking Officer.
The SERP, effective from June 1, 2024, will provide Turkington with a monthly credit of $5,417 to her retirement account until she reaches the normal retirement age of 70, with the Board of Directors retaining discretion over the credit amount. The account will accrue interest at a fixed annual rate of 4%, compounded monthly.
Upon Turkington's separation from service after age 70, she will receive the SERP balance in 180 monthly installments. If separation occurs before the fourth plan year for reasons other than death, disability, or a change in control, no benefits will be paid.
In case of death, the beneficiary will receive the account balance over 60 months. Disability entitles Turkington to the account balance paid in 60 monthly installments. A change in control triggers a lump sum payment of the account balance plus the present value of expected future contributions over 36 months.
The split dollar life insurance agreement entitles Turkington's beneficiary to a portion of the death proceeds from bank-owned life insurance policies if she dies while employed. The benefit will be the lesser of three times her base salary or the net death proceeds.
Moreover, vesting provisions allow Turkington to retain a benefit after separation from service under certain conditions, such as disability, change in control, reaching age 70, or at the discretion of the Board.
The filing also includes the forms of the SERP and Split Dollar Agreement as exhibits, providing a foundation for these arrangements. This move reflects the bank's commitment to its executive leadership and its strategy for talent retention.
The details outlined in this article are based on the information provided in the SEC filing by Fidelity D & D Bancorp, Inc.
In other recent news, Fidelity D & D Bancorp, the parent company of The Fidelity Deposit and Discount Bank, declared a quarterly dividend of $0.38 per share. This dividend is slated for payment to shareholders who are on record as of a date in May. This announcement is a part of Fidelity D & D Bancorp, Inc.'s ongoing efforts to provide value to shareholders and is indicative of its performance in financial services.
Still, the company has made it clear that future projections are subject to various factors, including market demand, economic conditions, and competitive pressures. Notably, technological changes and other risks and uncertainties, some of which are detailed in the company's filings with the Securities and Exchange Commission, could also influence actual results.
These are all recent developments for the company. It's worth noting that these estimates and projections are subject to change based on various factors.
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