Porter Bancorp, Inc. 2010 Incentive Compensation Bonus Plan.



 Exhibit 10.14 

PORTER BANCORP, INC. 

POLICY STATEMENT 

INCENTIVE COMPENSATION BONUS PLAN 

FOR SENIOR LEADERSHIP 

EFFECTIVE 2010 

OBJECTIVE 
 This Plan is designed
to attract and retain excellent employees and to align the interests of our employees with the interests of our stockholders. The plan shall reward and promote performance based upon predetermined and defined measurable objectives. It further has
been designed to reward above-average performance and to enhance risk-management procedures of the bank. 
 NOTE: The goal metrics are
attached to document as Exhibit A. Peer metrics will be used for Banks identified in Exhibit B. 
 SENIOR LEADERSHIP TEAM AND DESIGNATED
MANAGEMENT PERSONNEL (OTHER THAN MANAGED ASSET COMMITTEE MEMBERS) 
 The Senior Leadership Team and designated management personnel (as
designated by the Board of Directors in the organizational Board meeting) can earn up to 30% of their salary based upon the bank’s performance. Each point scored translates to 1% of salary. 

SENIOR LEADERSHIP TEAM AND DESIGNATED MANAGEMENT PERSONNEL/MANAGED ASSET COMMITTEE MEMBERS 

The Senior Leadership Team and designated management personnel that are members of the Managed Asset Committee (as designated by the Board of Directors in
the organizational Board meeting) can earn up to 20% of their salary based upon the bank’s performance and up to 20% of their salary based upon the bank’s satisfaction of asset quality objectives. Each point scored translates to 1% of
salary. 
 SUPPLEMENTAL SENIOR LEADERSHIP TEAM BONUS - $5,000 

The Senior Leadership Team will be eligible for an additional bonus of $5,000 if EPS increases 10% or more over the prior year. 

CPP RESTRICTION ON BONUSES 

Under the CPP compensation regulations, no payments or accruals of bonuses, retention awards or incentive compensation
are permitted to be paid to the five most highly compensated employees of Porter Bancorp, during the period of time in which the U.S. Treasury holds an equity position in Porter Bancorp. The Company is permitted, however, to grant employees
long-term restricted common stock in an amount that does not exceed
 1/3 the employee’s total annual compensation.
The determination of the five most highly paid employees is done on an annual basis. As a result of the restrictions on payments or accruals of bonuses, retention awards or incentive compensation to the five most highly compensated employees,
effective for the year 2010, the Compensation Committee determined to grant the five most highly compensated employees additional shares of restricted stock if the pre-established performance measures described above are satisfied. The fair market
value of the shares granted to each of these employees will be equal to the amount of the incentive cash bonus they would have received under the cash incentive bonus. The shares granted to these employees will be subject to the terms set forth in
the Treasury regulations. 







 Exhibit A 

Sr. Leadership Team and Designated Management Personnel 
  

									
	 	  	% Points	  	Level 1 Target	  	% Points	  	Level 2 Points
					
	 EPS
	  	3	  	105%xPrior Year	  	6	  	110%xPrior Year
	 ROAA (.50% threshold)
	  	3	  	Peer	  	6	  	110%xPeer
	 ROAE (9.0% threshold)
	  	3	  	Peer	  	6	  	110%xPeer
	 NIM
	  	3	  	Peer	  	6	  	110%xPeer
	 Efficiency
	  	3	  	Peer	  	6	  	Peer/110%
		  	 	  		  	 	  	
					
	 Total Possible Incentive
	  	15	  		  	30	  	
		  	 	  		  	 	  	

 Sr. Leadership Team and Designated Management Personnel/Managed Asset Committee 

 

									
	 	  	% Points	  	Level 1 Target	  	% Points	  	Level 2 Points
					
	 EPS
	  	2	  	105%xPrior Year	  	4	  	110%xPrior Year
	 ROAA (.50% threshold)
	  	2	  	Peer	  	4	  	110%xPeer
	 ROAE (9.0% threshold)
	  	2	  	Peer	  	4	  	110%xPeer
	 NIM
	  	2	  	Peer	  	4	  	110%xPeer
	 Efficiency
	  	2	  	Peer	  	4	  	Peer/110%
		  	 	  		  	 	  	
					
	 Total Possible Incentive
	  	10	  		  	20	  	
		  	 	  		  	 	  	
					
	 	  	% Points	  	Level 1 Target	  	% Points	  	Level 2 Points
					
	 NPL/Loans
	  	2.5	  	3.00%	  	5	  	2.00%
	 NPA/Assets
	  	2.5	  	2.50%	  	5	  	1.50%
	 Charge-offs
	  	2.5	  	0.35%	  	5	  	0.25%
	 Classified Credit Balances
	  	2.5	  	$100 million	  	5	  	$80 million
		  	 	  		  	 	  	
					
	 Total Possible Incentive
	  	10	  		  	20	  	
		  	 	  		  	 	  	

 Supplemental Senior Leadership Team Cash Bonus 

 

					
	 	  	Target	  	Bonus
			
	 EPS (PBIB)
	  	110% of Prior Year	  	$5,000








 Exhibit B 

PBIB Comparable Peer Group 
  

	 	•	 	 Bank of Kentucky Financial Corporation 


  

	 	•	 	 Community Bank Shares of Indiana, Inc. 


  

	 	•	 	 Community Trust Bancorp, Inc. 


  

	 	•	 	 Farmers Capital Bank Corporation 


  

	 	•	 	 First Financial Service Corporation 


  

	 	•	 	 MainSource Financial Group, Inc. 


  

	 	•	 	 Republic Bancorp, Inc. 


  

	 	•	 	 S.Y. Bancorp, Inc.