1. Doug Pearson May 15, 2013 Meeting Moderator

2. Agenda Polling to set the stage Briefing from Belinda Cavazos, Teche Federal Briefing from Josh Seago, Beacon and Company Some ideas from NSS Interactive Discussion

3. Belinda Cavazos Teche Federal Bank Retail Division Manager – branches, retail lenders, training, and administration 40 years of experience starting out as a teller Rolled out their incentive program in 2002 when she started out with Teche

4. SALES INCENTIVE PROGRAM

5. Organized in 1934 as a Savings and Loan Company State Charter June 2011 Located in South Central Louisiana Currently 20 Locations – 19 Full Service Branches $850 million 330 Employees 200 Retail Employees Management, Branch Staff and Lenders HISTORY

6. Implemented in 2002 Created and Developed Internally Production & Profit Driven Retail Positions Participating: Retail Management, Administration and Marketing Branch Lenders and Loan Officer Assistants Branch Managers Customer Service Representatives Future Participants Tellers (Closed Referral Incentive Payment 6/13) Retail Sales Incentive Program

7. Accounting Department Provides Data: AVERAGE BALANCE OF PRODUCT PORTFOLIO LIFE EXPECTANCY OF PRODUCT RATE DIFFERENTIAL PROFITABILITY

8. Human Resources Provides Data: Salary Surveys (Asset Size and Position) Market Survey State Survey National Survey Compare our current salary to that of same position’s salary and incentives/bonus MONETARY COMPENSATION TARGETS

9. Loans: Use prior 5 months of loan production as a predictor of production for the next 6 months production Deposits: Use prior year’s same 6 months interval of deposit production as a predictor of the next 6 months of production PRODUCTION ANALYSIS FORECAST

10. Threshold Tiers Pay Per Point at each Tier PLAN RESULTS Monetary Payouts

11. Customer Service Reps- Incentive Target-21% Average - $500/mo. High - $1,600/mo. PLAN RESULTS Monetary Payouts

12. Branch Managers- Incentive Target-45% Average - $1675/mo. High - $4,000/mo. PLAN RESULTS Monetary Payouts

13. Lenders- Incentive Target – 74% Average of $2,750/mo. High $6,800/mo. (74%) PLAN RESULTS Monetary Payouts

14. Retail Management, Retail Administration & Marketing Various incentive targets Calculation is based on the total production relating to areas of responsibility and/or support (Ex. Regional Loan Manager’s earn roll up of loan production points for lenders in their region only.) PLAN RESULTS Monetary Payouts

15. Salary Surveys-Annually Plan Reviews and Adjustments-Semi-annually 14 Different Plans reviewed and adjusted Payouts are Monthly ADMINISTRATION

16. Josh Seago Josh Seago – Account Executive, Beacon and Company Vice President, Retail Banking at Naperville Bank & Trust Transitioned the organization to needs based selling Vice President, Branch Manager of PNC Bank Facilitated training for the Chicago market

18. “Incentive programs as a building block of an overall sales culture”

19. “Incentive programs as a coaching tool”

20. “Incentive programs as a sales motivator”

21. Additional ideas from NSS

22. Incentive Plan Design Tools Modifiers Gates CAPs Thresholds Accelerators SPIFFs Non-cash rewards Scorecards

23. Checklist For Plan Effectiveness Is it fair? Is it understandable? Does earnings reflect effort? Have targeted earnings level been reached often? Are payments frequent enough? Are you confident that doing the right job produces more compensation? How may people are making quota? Has the plan changed to reflect external issues? Is turnover up? Are we attracting the right people? Are desired work behavior changes occurring? Is your commission statement accurate? Is your commission statement understandable? Are there too many measurements to focus on?

24. Questions and Answers Chat Raise your hand icon

25. Contact Information www.nsscorp.com dpearson@nsscorp.com 603-296-2909 www.beaconandcompany jseago@beaconandcompany 630-299-3660