Exhibit 10.33


 


Approved by the Compensation Committee 1/29/04


 


EXECUTIVE
MANAGEMENT


 


SHORT
TERM INCENTIVE PLAN for 2004


 


1.                                      CUSTOMER
CENTRIC FOCUS (30 Points)


 


A.                                   15 points for originating $1.4 billion of transactions during the year including
booked commitments for loans, leases, placements, and deals closed by referral
sources, plus one additional point up to a maximum of 5 points for each $5
million of portfolio loan growth in excess of the budget.


 


B.                                     10 points for “best efforts” evaluation; and for originating and arranging
low-income transactions of $230 million during the year, plus one point up to a
maximum of 5 points for each $5 million in excess of the goal.


 


C.                                     5 points for finalizing external customer satisfaction surveys,
implementing customer satisfaction benchmarks for each customer segment,
implementing internal satisfaction surveys, and increasing usage of the
cross-sell referral database.


 


2.                                      RISK
MANGEMENT (25 Points)


 


A.                                   10 points for achieving the
Board approved asset and liability management objectives by operating in the
“green range” for a minimum of 90% of the measurements during the year and
crossing into the “red range” not more than once during the year.


 


B.                                     5 points
for the average percentage of non-performing assets (non-accruing and OREO) of
1.5% or less of total loans and LC’s plus an additional 5 points if the ratio
is 1% or less with a reduction of 5 points if net charge offs exceed .5%.


 


C.                                     5 points for the average percentage of classified assets (substandard and
doubtful) of 35% or less of risk capital (as defined by the OTS.)


 


D.                                    5 points
for satisfactory evaluations from Loan Review, auditors, FCA, and OTS.


 


3.                                      FINANCIAL
(30 Points)


 


A.            20 points for meeting pretax net income
budget.


 


B.            5 points for the capital ratio averaging
14% or better during the year.


 


C.            5 points for an efficiency ratio of 57% or
less (excluding mission related corporate development, NCBDC contribution,
strategic plan related implementation expenses, and new markets and products
related R&D).


 

















 


4.                                      LEADERSHIP
(15 Points)


 


A.                                   5 points for developing a viable Mission Banking
business strategy.


 


B.                                     5 points for meeting objectives in the strategic plan
for employee retention, diversity, internal promotions, and Organizational
Development.


 


C.                                     5 points for achieving strategic objectives to address political and reputation
risk.


 


AWARD LEVELS


 


	
   

  	
   

  	
  Incentive
  Award as a Percentage

  of Year End 2004 Base Salary

  	
   

  	
   

  	
   

  
	
  Points

  	
   

  	
   

  	
   

  	
  Executive Council

  	
   

  	
  CEO

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  50 - 64.9

  	
   

  	
  Up to

  	
   

  	
  15%

  	
   

  	
  20%

  	
   

  
	
  65 - 79.9

  	
   

  	
  Up to

  	
   

  	
  25%

  	
   

  	
  30%

  	
   

  
	
  80 - 89.9

  	
   

  	
  Up to

  	
   

  	
  30%

  	
   

  	
  40%

  	
   

  
	
  90 and over

  	
   

  	
  Up to

  	
   

  	
  35%

  	
   

  	
  45%

  	
   

  



 


In addition, an “Add-on” award may be
earned by exceeding the pretax net income budget goal.  The maximum additional award is 5% of salary
for the CEO and 7.5% of salary for the Executive Council.  For each 1% that pretax net income exceeds
goal, 1% of salary is added to the award earned for achievement of the other
goals, up to a maximum total award of 50% of salary for the CEO and 42.5% of
salary for the Executive Council.


 


The CEO determines incentive awards for each Executive Council
participant based upon the results of this plan and the achievement of
individual performance objectives.  The
Compensation Committee determines the award for the CEO.


 


PARTICIPANTS


 


Brookner,
Connealy, Hackman, Harris, Hiltz, Kho, Luzik, Reed, Schofield, Simonette, and
Snyder


 


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