Exhibit 10.1


 


Community First


 


2002 Annual Incentive Plan (AIP)


 


EXECUTIVE SUMMARY


 


I.                   Participants


 


	
   

  	
   

  	
  Incentive - % of Salary

  	
   

  
	
  A.

  	
  Group

  	
   

  	
  Target

  	
   

  	
  Maximum

  	
   

  
	
   

  	
  CEO

  	
   

  	
  50

  	
  % 

  	
  100

  	
  %

  
	
   

  	
  COO

  	
   

  	
  40

  	
  %

  	
  80

  	
  %

  
	
   

  	
  EVP

  	
   

  	
  30

  	
  %

  	
  60

  	
  %

  
	
   

  	
  SVP

  	
   

  	
  25

  	
  %

  	
  50

  	
  %

  
	
   

  	
  VP

  	
   

  	
  15

  	
  %

  	
  30

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
  Other

  	
   

  	
   

  	
   

  	
   

  	
   

  



 


II.               Measures / Weighting


 


	
  A.

  	
  Internal (Earnings Per
  Share (EPS))

  	
   

  	
  37.5

  	
  %(1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
  External (Return
  on Equity (ROE))

  (Total Shareholder Return (TSR))

  	
   

  	
  37.5

  	
  %(1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
  Balanced Scorecard

  	
   

  	
  25

  	
  %(2)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Total

  	
   

  	
  100

  	
  %

  



 












(1)  Division / CFC Presidents = 25%


(2)  Division / CFC Presidents = 50%


 


III.           Internal Measure – Earnings Per Share (EPS)


 


Based on performance
versus 2002 profit plan


No award is less
than 91% of plan


Rounded up a .5
(plan) and down at <.5


 

















 


IV.         External Measure – Return on Equity (ROE) / Total Shareholder Return (TSR)


 


Compares CFB
performance in 2002 on Return on Equity (ROE) and Total Shareholder Return
(TSR) to SNL peer group (30 banks).


 


Percentile ROE


 


	
  85th or
  higher

  	
   

  	
  100

  	
  %

  	
  150

  	
  %

  	
  200

  	
  %

  
	
  50th

  	
   

  	
  50

  	
  %

  	
  100

  	
  %

  	
  150

  	
  %

  
	
  49th or
  lower

  	
   

  	
  0

  	
  %

  	
  50

  	
  %

  	
  100

  	
  %

  
	
   

  	
   

  	
  49th or
  lower

  	
   

  	
  50th 

  	
  *

  	
  85th or
  higher

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Percentile TSR

  



 












*  Award will be prorated from 50th%
to 85th%.


 


V.               Balanced Scorecard Measure


 


A.                      The Balanced Scorecard measures
three (3) factors in the AIP:


1)              Sales


2)              Financial


3)              Credit


 


B.                        Sales Measures include three key
indicators:


1)              Number of sales per FTE per week
– see attached list of qualifying products


2)              New customer cross-sell ratio


3)              Campaign Performance


 


C.                        Financial Measures include four
key indicators:


1)              Net Controllable Revenue per FTE


2)              Controllable Non-Interest Income
per FTE


3)              Loan fees as percent of profit
plan


4)              Investment product sales as
percent of profit plan


 


D.                       Credit Quality Measures include:


1)              Credit Goal Scoring


 


E.                         Balanced Scorecard Target
Incentive:


 


	
  1)

  	
  Group

  	
   

  	
  %

  	
   

  
	
   

  	
  CEO

  	
   

  	
  100

  	
  %

  
	
   

  	
  COO

  	
   

  	
  100

  	
  %

  
	
   

  	
  EVP

  	
   

  	
  75

  	
  %

  
	
   

  	
  SVP

  	
   

  	
  60

  	
  %

  
	
   

  	
  VP

  	
   

  	
  40

  	
  %

  



 


2

















 


VI.         Plan Administration


 


1.               Eligibility Requirements  - All
Community First designated Vice Presidents, Senior Vice Presidents, Executive
Vice Presidents, COO & CEO are eligible for the Corporate AIP.


 


2.               Award Potential  - There is no
cap on the amount of AIP you are eligible to earn.  AIP is determined as a % of your year-end annual salary.  This award is based on achievement of all
designated measures.


 


3.           Incentive
Payment Schedule - The
AIP will be calculated and paid annually at the end of the plan year, and is
typically paid with the first full pay period in March of the year following
the incentive period.  The AIP plan year
is defined as CFB’s fiscal year, which is also the calendar year.  To consider any incentive earned and
payable, the employee must be an active employee of CFB at the time incentive
payment is paid.


 


4.               Communication  - The AIP
actual vs. measure results are anticipated to be communicated quarterly.  You are encouraged to track the measures on
an on-going basis.


 


5.             New Hires
- Employees hired into eligible positions between January 1 and June 30 of the
plan year are eligible for the plan and may receive a pro-rata award.  For example:  someone hired in May will be paid for seven months of earned
incentive.  Employees hired after June
30 may be eligible to participate in the plan and receive a pro-rata award at
the discretion of President/CEO and Director of Human Resources.


 


6.               Promotions - Employees promoted into AIP eligible positions would be
covered under the same provisions as a new hire.


 


7.               Voluntary Resignation, Involuntary Resignation or Termination prior to the end of the plan
year – Potential incentive payment is forfeited.  Voluntary Demotion  –
Payment may be made at the discretion and approval of the President/CEO and
Director of Human Resources.


 


8.               Transfers –
If the employee transfers out of an eligible position, an award may be
pro-rated.  If an employee transfers to
a different size location, the AIP calculation will be pro-rated to reflect the
appropriate time worked in each location during the plan year.


 


9.               Medical or Unpaid Medical Leave of Absence – Will be reviewed on a case by
case basis.


 


10.         Overall Performance Requirements  – To emphasize that achievement of the incentive plan goals
must not come at the expense of other responsibilities, no incentive awards
will be made to participants whose overall performance for the year receives a
rating of less than “Meets Expectations”.


 


11.         Periodic Review  – Periodically
the effectiveness of the plan will be reviewed to assure the plan supports
CFB’s strategic direction.  Each year
the plan will be reviewed to determine participant eligibility and whether it
will be continued for the next fiscal year.


 


12.         Reserved Right - Community First reserves the right to change any and all
terms of the Balanced Scorecard Annual Incentive Plan, up to and including
termination of the plan, at any time.


 


3

















 





 


2002


Community
First


Balanced
Scorecard


 


Regional Financial Centers


Community
Financial Centers


 


Annual
Incentive Plan


 


 


Presidents/Managers


 


4

















 


Regional Financial
Centers

Community Financial Centers


Presidents/Managers


 


Table of Contents


 


	
  Cover

  
	
   

  
	
  Table
  of Contents

  
	
   

  
	
  Message from Mark Anderson

  
	
   

  
	
  Annual Incentive Plan Overview

  
	
   

  
	
  Plan Administration

  
	
   

  
	
  Performance Measure Definitions

  
	
   

  
	
  2002 Qualifying Products

  
	
   

  
	
  Performance Measurement Schedule

  
	
   

  
	
  Performance Measure Score – RFC

  
	
   

  
	
  Incentive
  Calculation Format – RFC

  
	
   

  
	
  Performance Measure Score – CFC

  
	
   

  
	
  Incentive
  Calculation Format – CFC

  
	
   

  
	
  Designated Participants

  



 


5

















 





 


A Message from Mark Anderson


 


 


Great News!!!!


 


The Balanced Scorecard has been very effective in impacting our
performance and actions in 2001. 
Excellent progress in virtually all components of the scorecard has been
made.  And, additional insights have
been learned during the year.  This
added knowledge we have gained, along with some additional analysis, is leading
to some important improvements for 2002.


 


As you work through the material we have attached, you will see these
enhancements.  Several of the important
changes are:


 


1.                                       The Sales/FTE/Week measure has
been changed from an annual measurement to a quarterly measurement and
scorecard impact.  This will not only
recognize the sales level reached, but also the progress during the year.


2.                                       The New Customer Cross-Sell
measure has also been moved to a quarterly evaluation time frame and we believe
this will help all of us benefit from our efforts during the year.


3.                                       The Credit Score ranges have
been modified to better match our performance expectations. Earlier
communication of our retroactive treatment impact should have been seen with
your October results.


4.                                       “Bonus points” for outperforming
the performance levels that correspond with the 100% payout level has also been
added.  This opens up the “upside”
tremendously.


5.                                       Finally, another significant
positive.  In addition to a 90% actual
to profit plan “Knockout”, we have added an ROE “Knock In” that will reward the
highest ROE performers who may have missed 90% of an aggressive profit plan.


 


We are excited about the scorecard performance we have seen so far in
2001 and the tremendous progress.  With
these changes, there is greater opportunity for superior performance.


 


6

















 


In fact, special 2001 retroactive treatment not only for the credit
scorecard, but also Sales/FTE/Week and New Customer Cross-Sell of your
scorecard will be given.  And going one
step better, for 2001 only, your scorecard will benefit from the better of the
yearly level or the quarterly results for Sales/FTE/Week and New Customer
Cross/Sell.


 


Thank you for all of the attention and support you have put into the
scorecard.  Every one of these
enhancements will better evaluate your growth and performance and provides a
reward for your success.


 


Best wishes.


 


7

















 


2002
Balanced Scorecard 


Regional Financial
Centers/Community Financial Centers


Annual Incentive Plan for President/Manager - Overview


 


Introduction


As we approach 2002 with new challenges and opportunities by offering
our customers quality financial service, it is important that our compensation
package rewards outstanding performance in meeting our sales, financial and
credit quality goals.


 


Plan Objectives


The President/Manager Balanced Scorecard Annual Incentive Plan (AIP),
whether Regional Financial Center (RFC) or Community Financial Center (CFC),
has been designed to motivate superior performance and create additional
shareholder value.  The goals stated for
each president/branch manager are intended to emphasize behaviors over which
they have control and will lead to increased profitability in the future.


 


Eligibility
Requirements


All RFC Bank Presidents and CFC Branch Managers are
eligible for the AIP.


 


Award Potential


There is no cap on the amount of AIP you are eligible
to earn.  AIP is determined as a % of
your year-end annual salary.  This award
is based on achievement of all balanced scorecard performance measures and
profit plan goals.


 


Incentive Payment
Schedule


The AIP will be calculated and paid annually at the
end of the plan year, and is typically paid during with the first full pay
period in March of the year following the incentive period. The AIP plan year
is defined as the CFB’s fiscal year, which is also the calendar year. To
consider any incentive earned and payable, the employee must be an active
employee of CFB at the time incentive payment is paid.


 


Performance Measures


There are three measurement factors included in the AIP.


 


1.                                       Sales


2.                                       Financial


3.                                       Credit


 


Sales Measures include three key indicators:


•                  Number of sales per FTE per week
- see attached list of qualifying products


•                  New client cross-sell ratio


•                  Campaign Performance


 


Financial Measures include four key indicators:


•                  Net Controllable Revenue per FTE


•                  Controllable Non-interest Income
per FTE


•                  Loan fees as percent of profit
plan


•                  Investment product sales as
percent of profit plan


 


8

















 


Credit Quality
Measure
includes:


 


•                  Credit Goal Scoring


 


9

















 


In addition to these measures, the bank's performance against profit
plan is an important indicator of success and is included in the AIP.  The Profit plan is based on historical
performance but is designed to drive higher level performance.


 


If the RFC/CFC’s actual performance is less than 90% of profit plan,
unless a ROE of 30% is achieved, no AIP will be awarded.  Where actual performance exceeds the profit
plan, a higher AIP will be paid to reward bank presidents/managers (see page
11, item B).


 


Those employees who establish aggressive profit plans, with higher
levels of performance over the previous year, and exceed those plans, will
receive a bonus incentive (see page 11, item F).


 


 


Calculating
the AIP Award


•                  The Sales, Financial and Credit
scores are assigned based on actual performance and multiplied by the weight
assigned to each set of measurements. 
These weighted scores are added to obtain the Balanced Scorecard Points.  Bonus points have been added to the Sales
and Financial measures.  This will allow
rewards for performance above and beyond expectations.  Also, a special bonus is included on
sales/FTE/Week measure.  Locations that
have a 20% increase over their 2001 average will move into the next higher
level.  This will reward substantial
growth performance.


 


•                  The Bank’s actual Performance
vs. Profit Plan is then computed. 
If it is less than 90%, unless the specified ROE is achieved, no AIP
will be awarded.


 


•                  The Balanced Scorecard Performance Points
number is computed by multiplying the Total Performance Points in Part A by the
Bank’s Performance vs. Profit Plan from Part B.  This provides for a higher incentive when the bank’s performance
exceeds plan.


 


•                  The Target Incentive for each
bank is based on a grid showing the Bank’s Net Controllable Revenue per FTE vs.
Annualized Pretax Adjusted Earnings. 
This target incentive takes into account bank earnings and efficiency,
rewarding banks that achieve higher earnings and greater efficiency.


 


•                  The Base Balanced Incentive is
computed by multiplying the Target Incentive (D) by the Balance Performance
Index (C).  This is the percent of base
salary to be paid as the AIP.


 


•                  A Bonus Incentive is added to
the AIP if the bank’s Balanced Scorecard Points (A) are greater than 50 and the
bank’s performance vs. Profit Plan exceeds 100%.  The bonus incentive is based on a schedule reflecting the
percentage increase in the 2002 Profit Plan over the 2001 actual
performance.  This is intended to
provide higher rewards for Presidents/Managers who set aggressive plans and
exceed them.


 


•                  The Total Balance Incentive Percentage
equals the Base Balanced Incentive plus the Bonus Incentive, if
applicable.  This is the total
percentage of the Bank President/Managers salary to be paid out as the AIP.


 


Plan Administration


 


1.                      New Hires – Employees
hired into eligible positions after January 1 but before June 30 of the plan
year may receive a pro-rata award.  For
example: someone hired in May, may be paid for seven 


 


10

















 


months
of earned incentive.  Employees hired
after June 30 may be eligible to participate in that plan year and receive a
pro-rata award.  Eligibility for those
individuals would be made at the discretion and approval of the Division
President and Human Resources.


 


2.                      Promotions – Employees
promoted into AIP eligible positions would be covered under the same provisions
as a new hire.


 


3.                      Voluntary Resignation,
Involuntary Resignation or Termination prior to the end of the plan year –
Potential incentive payment is forfeited. 
Voluntary
Demotion – Payment may be made at the discretion and approval of the Division
President and Human Resources.


 


4.                      Transfers – If the
employee transfers out of an eligible position, an award may be pro-rated.  If an employee transfers to a different size
location, the AIP calculation will be pro-rated to reflect the appropriate time
worked in each location during the plan year.


 


5.                      Medical or Unpaid Medical Leave of Absence – Will be
reviewed on a case by case basis.


 


6.                      Overall Performance Requirements – To
emphasize that achievement of the incentive plan goals must not come at the
expense of other responsibilities, no incentive awards will be made to
participants whose overall performance for the year receives a rating of less
than “Meets Expectations”.


 


7.                      Periodic Review –
Periodically the effectiveness of the plan will be reviewed to assure the plan
supports CFB’s strategic direction. 
Each year the plan will be reviewed to determine participation
eligibility and whether it will be continued for the next fiscal year.


 


8.                      Reserved Right - Community
First Bankshares, Inc. reserves the right to change any and all terms of the
Balanced Scorecard Annual Incentive Plan, up to and including termination of
the plan, at any time.


 


The achievement of the
Sales, Financial and Credit goals as stated in the Balanced Scorecard will
contribute not only to higher profitability for the bank but also to greater
financial rewards for Presidents/Managers.


 


The following pages illustrate how the AIP
scoring and calculations are determined:


 


1.                                                         Performance Measure Definitions


2.                                                         2002 Qualifying Products


3.                                                         Performance Measure Schedule
that shows the assigned goal and scoring tiers


4.                                                         Examples


•                  RFC Performance Measurement
Score & Incentive Calculation Format


•                  CFC Performance Measurement
Score & Incentive Calculation Format


 





 


11

















 


2002 CFB Balanced Scorecard - 


Regional Financial Centers/Community Financial Centers


Performance Measurement Definitions - President/Manager


(Changes made from the 2001 scorecard to the 2002 scorecard
are highlighted in blue)


 


Sales Measurements


1. Number of
Sales/FTE/Week*


Sales   = # of qualifying products
sold.  A list of qualifying products is
attached and is available in the Public Folders.


FTE    = Full-time equivalents, on an
actual hours worked basis, as reported on the Ceridian Payroll System.


The calculation for incentive purposes
will use the monthly FTE.  Bank, Trust,
..30 Insurance and Investment Sales FTE will be included in the calculation.


Week  = # of weeks in the period being
reported.


The
calculation for incentive purposes will be based on Quarterly performance
divided by four quarters for the year.


 












*
Special Credit:  a 20% increase over
2001 average will allow a move to the next higher payout level


 


2. New Customer
Cross-Sell Ratio


Sales    = # of qualifying products sold to new customers.  A listing of qualifying products is
available on the Intranet.


New Customers    = # of new customers for the period being
reported.


The calculation for incentive purposes
will be based on Quarterly performance divided by four quarters for the year.


 


3. Campaign
Performance 


The
bank will receive a score  (per the
Performance Measurement Schedule) for each campaign based on % of goal
attainment.  The calculation for
incentive purposes will add the scores for each of the campaigns and divided by
the # of campaigns.


 


Financial Measurements


1. Net Controllable
Revenue/FTE 


Net
Controllable Revenue 
   = (Net Interest Income +
Total Non-Interest Income(incl. loan fees+JV Soft Dollar fees) - Security Gains
- BOLI Benefit - Undistributed Income from subsidiaries).


FTE    = Full-time equivalents, on an actual
hours worked basis, as reported on the Ceridian Payroll System.


The calculation for incentive purposes
will use the monthly FTE.  Bank, Trust,
..30 Insurance and Investment Sales FTE will be included in the calculation


 


The calculation will be based on
year-to-date annualized performance.


 


2. Controllable
NII/FTE


NII      = (Total Non-Interest Income (incl. loan
fees+JV Soft Dollar fees) - Security Gain - BOLI Benefit - Undistributed
Income)


FTE    =
Full-time equivalents, on an actual hours worked basis, as reported on the
Ceridian Payroll System.


The calculation for incentive purposes
will use the monthly FTE.  Bank, Trust,
..30 Insurance and Investment Sales FTE will be included in the calculation


 


The calculation will be based on
year-to-date annualized performance.


 


3. Loan Fees as %
Plan


Loan Fees   = Total loan fees line from Variance
Reports + JV Soft Dollar fees


The calculation is based on actual
year-to-date loan fees as a % of year-to-date planned loan fees.


 


4. Investment Sales
as % Plan 


Investment
Sales   = Security Sales
Income line as reported on Variance Reports


The
calculation is based on actual year-to-date sales of investment products as a %
of year-to-date planned sales of investment products.


 


Credit Measurements 


1. Credit Goal
Scoring 


This is the Credit Goal Score as
reported in the Credit Goal Report prepared by Loan Accounting.


 


Other Definitions


Pretax Adjusted
Earnings = income b/4 tax + corp directed training + corp directed
advertising + CFSC data processing + goodwill + intangibles + mgmt fee -
undistributed income from subsidiaries - securities gains


 


12

















 


2002 CFB Balanced Scorecard


Regional
Financial Centers/Community Financial Centers


2002 Qualifying Products for Sales Measurements


 


(Changes made from
the 2001 scorecard to the 2002 scorecard are highlighted in blue.)


 


Sales Measurements


	
  Number of Sales/FTE/Week

  	
   

  	
  New Customer X-Sell
  Ratio

  
	
   

  	
   

  	
   

  
	
  Qualifying
  Products

  	
   

  	
  Qualifying
  Products

  
	
  •             Checking (Retail and Business)

  	
   

  	
  •             Checking (Retail and Business)

  
	
  •             Savings (Retail and Business)

  	
   

  	
  •             Savings (Retail and Business)

  
	
  •             Certificate of Deposit (Retail
  and Business)

  	
   

  	
  •             Certificate of Deposit (Retail
  and Business)

  
	
  •             Retirement Accounts (Savings
  and Certificates)

  	
   

  	
  •             Retirement Accounts (Savings
  and Certificates)

  
	
  •             Loans/Lines

  	
   

  	
  •             Loans/Lines

  
	
  •                       Consumer

  	
   

  	
  •                       Consumer (direct loans only)

  
	
  •                       Ready Credit

  	
   

  	
  •                       Ready Credit

  
	
  •                       Mortgage (non-JV)

  	
   

  	
  •                       Mortgage (non-JV)

  
	
  •                       Home Equity Loans & Lines

  	
   

  	
  •                       Home Equity Loans & Lines

  
	
  •                       Agricultural

  	
   

  	
  •                       Agricultural

  
	
  •                       Commercial

  	
   

  	
  •                       Commercial

  
	
  •                       Tax Exempt Loans

  	
   

  	
  •                       Tax Exempt Loans

  
	
  •                       Commercial Revolving Credit

  	
   

  	
  •                       Commercial Revolving Credit

  
	
  •                       Letters of Credit

  	
   

  	
  •                       Letters of Credit

  
	
  •                       Direct Leases

  	
   

  	
  •                       Direct Leases

  
	
  •             ATM/Debit Cards

  	
   

  	
  •             ATM/Debit Cards

  
	
  •             Elan Credit Cards

  	
   

  	
  •             Elan Credit Cards

  
	
  •             Investments

  	
   

  	
  •             Investments

  
	
  •             Credit Life and Disability
  (CGLI)

  	
   

  	
  •             Credit Life and Disability
  (CGLI)

  
	
  •                       Single Life

  	
   

  	
  •                       Single Life

  
	
  •                       Joint Life

  	
   

  	
  •                       Joint Life

  
	
  •                       Disability

  	
   

  	
  •                       Disability

  
	
  •                       Single Life/Disability

  	
   

  	
  •                       Single Life/Disability

  
	
  •                       Joint Life/Disability

  	
   

  	
  •                       Joint Life/Disability

  
	
  •             Online Banking

  	
   

  	
  •             Online Banking

  
	
  •             Online Bill Pay

  	
   

  	
  •             Online Bill Pay

  
	
  •             Online Business Banking*

  	
   

  	
  •             Online Business Banking*

  
	
  •             Safe Deposit Box

  	
   

  	
  •             Safe deposit Box*

  
	
  •             Insurance Policies*

  	
   

  	
   

  
	
  •             Trust Accounts*

  	
   

  	
   

  
	
  •             Mortgage JV Sales*

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Products
  NOT Qualifying:

  	
   

  	
  Products
  NOT Qualifying:

  
	
  •

  	
   

  	
  •             Indirect loans

  
	
   

  	
   

  	
   

  
	
  Additional
  NON-Qualifying Components:

  	
   

  	
  Additional
  NON-Qualifying Components:

  
	
  •             Accounts opened and closed in
  the same month

  	
   

  	
  •             Accounts opened and closed in
  the same month

  
	
  •             Checking and savings account
  upgrades

  	
   

  	
  •             Checking and savings account
  upgrades

  
	
  •             Back-dated accounts not put on
  the books prior to month end

  	
   

  	
  •             Back-dated accounts not put on
  the books prior to month end

  
	
  •             Loan and certificates
  automatically renewed

  	
   

  	
  •             Loan and certificates
  automatically renewed

  



 












* In development


 


13

















 


2002
CFB Balanced Scorecard


Regional
Financial Centers/Community Financial Centers


Performance Measurement Schedule – President/Manager


 


(Changes made from
the 2001 scorecard to the 2002 scorecard are highlighted in blue.)


 


	
  2002 Measurements

  	
   

  	
  Regional Financial Center (Weight)

  	
   

  	
  Community Financial Center
  (Weight)

  	
   

  
	
  A.  Sales

  	
   

  	
  40

  	
  %

  	
  45

  	
  %

  
	
  B.  Financial

  	
   

  	
  40

  	
  %

  	
  45

  	
  %

  
	
  C.  Credit

  	
   

  	
  20

  	
  %

  	
  10

  	
  %

  



 


 


	
  A.  SALES

  	
   

  	
  Payout Scale

  	
   

  	
  Score

  	
   

  	
  Bonus

  	
   

  
	
  1.  Number of Sales/FTE/Week (40%)

  	
   

  	
  <3.00

  	
   

  	
  0.0

  	
   

  	
  Add one point for each .05 increase in
  performance above 5.50

  	
   

  
	
   

  	
   

  	
  3.00-3.64

  	
   

  	
  25.0

  	
   

  	
   

  
	
   

  	
   

  	
  3.65-4.34

  	
   

  	
  50.0

  	
   

  	
   

  
	
   

  	
   

  	
  4.35-4.99

  	
   

  	
  75.0

  	
   

  	
   

  
	
   

  	
   

  	
  5.00-5.50

  	
   

  	
  100.0

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.  New Customer Cross-sell Ratio (30%)

  	
   

  	
  <1.50

  	
   

  	
  0.0

  	
   

  	
  Add one point for each .02 increase in
  performance above 2.80

  	
   

  
	
   

  	
   

  	
  1.50-1.84

  	
   

  	
  25.0

  	
   

  	
   

  
	
   

  	
   

  	
  1.85-2.19

  	
   

  	
  50.0

  	
   

  	
   

  
	
   

  	
   

  	
  2.20-2.49

  	
   

  	
  75.0

  	
   

  	
   

  
	
   

  	
   

  	
  2.50-2.80

  	
   

  	
  100.0

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.  Campaign Performance (30%)

  	
   

  	
  <90.0

  	
  %

  	
  0.0

  	
   

  	
  Add one point for each 5% increase in
  performance above 150%

  	
   

  
	
   

  	
   

  	
  90.0-99.9

  	
  %

  	
  25.0

  	
   

  	
   

  
	
   

  	
   

  	
  100.0-109.9

  	
  %

  	
  50.0

  	
   

  	
   

  
	
   

  	
   

  	
  110.0-119.9

  	
  %

  	
  75.0

  	
   

  	
   

  
	
   

  	
   

  	
  120-150

  	
  %

  	
  100.0

  	
   

  	
   

  



 


	
  B.  FINANCIAL

  	
   

  	
   

  	
   

  	
  Score

  	
   

  	
  Bonus

  	
   

  
	
  1.  Net Controllable Revenue/FTE (30%)

  	
   

  	
  <$200,000

  	
   

  	
  0.0

  	
   

  	
  Add one point for each $1,000 increment
  over $280,000

  	
   

  
	
   

  	
   

  	
  $200,000-221,999

  	
   

  	
  25.0

  	
   

  	
   

  
	
   

  	
   

  	
  $222,000-243,999

  	
   

  	
  50.0

  	
   

  	
   

  
	
   

  	
   

  	
  $244,000-264,999

  	
   

  	
  75.0

  	
   

  	
   

  
	
   

  	
   

  	
  $265,000-280,000

  	
   

  	
  100.0

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.  Controllable NII/FTE (20%)

  	
   

  	
  <$45,000

  	
   

  	
  0.0

  	
   

  	
  Add one point for each $1,000 increment
  over $70,000

  	
   

  
	
   

  	
   

  	
  $45,000-49,999

  	
   

  	
  25.0

  	
   

  	
   

  
	
   

  	
   

  	
  $50,000-54,999

  	
   

  	
  50.0

  	
   

  	
   

  
	
   

  	
   

  	
  $55,000-59,999

  	
   

  	
  75.0

  	
   

  	
   

  
	
   

  	
   

  	
  $60,000-70,000

  	
   

  	
  100.0

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.  Loan Fees as % Plan (20%)

  	
   

  	
  <90.0

  	
  %

  	
  0.0

  	
   

  	
  Add one point for each 1% increment over
  130%

  	
   

  
	
   

  	
   

  	
  90.0-99.9

  	
  %

  	
  25.0

  	
   

  	
   

  
	
   

  	
   

  	
  100.0-109.9

  	
  %

  	
  50.0

  	
   

  	
   

  
	
   

  	
   

  	
  110.0-119.9

  	
  %

  	
  75.0

  	
   

  	
   

  
	
   

  	
   

  	
  120-130.00

  	
  %

  	
  100.0

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.  Investment Sales as % of Plan (30%)

  	
   

  	
  <90.0

  	
  %

  	
  0.0

  	
   

  	
  Add one point for
  each 1% 

  increment over 150% 

  Extra Bonus:  Add one point for each .1% increment above +5% of deposits&
  repos

  	
   

  
	
   

  	
   

  	
  90.0-99.9

  	
  %

  	
  25.0

  	
   

  	
   

  
	
   

  	
   

  	
  100.0-109.9

  	
  %

  	
  50.0

  	
   

  	
   

  
	
   

  	
   

  	
  110.0-119.9

  	
  %

  	
  75.0

  	
   

  	
   

  
	
   

  	
   

  	
  120-150

  	
  %

  	
  100.0

  	
   

  	
   

  



 


	
  C.  CREDIT

  	
   

  	
   

  	
   

  	
  Score

  	
   

  	
  Bonus- N/A

  	
   

  
	
  1.  Credit Goal Scoring

  	
   

  	
  >3.50

  	
  %

  	
  0.0

  	
   

  	
   

  	
   

  
	
  RFC (20%)

  	
   

  	
  3.01 - 3.50

  	
  %

  	
  25.0

  	
   

  	
   

  	
   

  
	
  CFC (10%)

  	
   

  	
  2.51 - 3.00

  	
  %

  	
  50.0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2.01
  - 2.50

  	
  %

  	
  75.0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  <=2.00

  	
  %

  	
  100.0

  	
   

  	
   

  	
   

  



 


14

















 


2002 CFB Balanced Scorecard

Regional Financial Centers/Community Financial Centers


Performance Measurement Score - President/Manager


 


(Changes made from the 2001 scorecard to the
2002 scorecard are highlighted in blue.)


 


RFC President/Manager
Example


 


	
  Sales Measurements (Weight 40%):

  	
   

  	
  Score

  	
   

  	
  Weight

  	
   

  	
  Weighted

  Score

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.  Number of Sales/FTE/Week

  	
   

  	
  57.3

  	
   

  	
  40

  	
  %

  	
  22.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 1 avg score was 2.95 =
  0 points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 2 avg score was 3.65 =
  50 points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 3 avg score was 4.50 =
  75 points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 4 avg score was 5.70 =
  100 points + 4 Bonus Points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annual Performance =
  [(0+50+75+104)/4 = 57.25]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.  New Customer Cross-Sell Ratio

  	
   

  	
  57.0

  	
   

  	
  30

  	
  %

  	
  17.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 1 avg score was 1.50 = 25
  points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 2 avg score was 1.65 = 25
  points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 3 avg score was 2.86 = 100
  points + 3 Bonus Points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 4 avg score was 2.20 = 75
  points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annual Performance =
  [(25+25+103+75)/4 = 57]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.  Campaign Performance

  	
   

  	
  77.0

  	
   

  	
  30

  	
  %

  	
  23.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Campaign # 1 was 95% of goal = 25
  points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Campaign # 2 was 130% of goal = 100
  points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Campaign # 3 was 180% of goal = 100
  points + 6 Bonus Points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Campaign Performance =
  [(25+100+106)/3=77]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL
  SALES MEASUREMENT SCORE

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
  63.1

  	
   

  



 


	
  Financial
  Measurements (Weight 40%):

  	
   

  	
  Actual

  	
   

  	
  Score

  	
   

  	
  Weight

  	
   

  	
  Weighted

  Score

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.  Net Controllable Revenue/FTE

  	
   

  	
  $

  	
  290,000

  	
   

  	
  110.0

  	
   

  	
  30

  	
  %

  	
  33.0

  	
   

  
	
  = 100 points + 10 Bonus Points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.  Controllable NII/FTE

  	
   

  	
  $

  	
  51,000

  	
   

  	
  50.0

  	
   

  	
  20

  	
  %

  	
  10.0

  	
   

  
	
  3.  Loan Fee as % Plan

  	
   

  	
  135.0

  	
  %

  	
  105.0

  	
   

  	
  20

  	
  %

  	
  21.0

  	
   

  
	
  = 100 points + 5 Bonus Points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.  Investment Product Sales as % Plan

  	
   

  	
  85.0

  	
  %

  	
  0.0

  	
   

  	
  30

  	
  %

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL FINANCIAL MEAUREMENT SCORE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
  64.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Credit
  Measurements (Weight 20%):

  	
   

  	
  Actual

  	
   

  	
  Score

  	
   

  	
  Weight

  	
   

  	
  Weighted

  Score

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.  CFB Credit Goal

  	
   

  	
  1.35

  	
   

  	
  100.0

  	
   

  	
  100

  	
  %

  	
  100.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL CREDIT MEASUREMENT SCORE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
  100.0

  	
   

  



 


15

















 


2002 CFB Balanced
Scorecard

Regional Financial Centers/Community Financial Centers

AIP Calculation - President/Manager


(Changes made from the 2001 scorecard to the 2002 scorecard
are highlighted in blue.)


 


RFC President/Manager Example


 


	
   

  	
   

  	
  Score

  	
   

  	
  Weight

  	
   

  	
  Points

  	
   

  	 

	
  A. Balanced
  Scorecard Points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Sales
  Measurement Score

  	
   

  	
  63.1

  	
   

  	
  40

  	
  %

  	
  25.2

  	
   

  	 

	
  Financial Measurement Score

  	
   

  	
  64.0

  	
   

  	
  40

  	
  %

  	
  25.6

  	
   

  	 

	
  Credit Measurement Score

  	
   

  	
  100.0

  	
   

  	
  20

  	
  %

  	
  20.0

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  TOTAL
  PERFORMANCE POINTS

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  70.8

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  B.
  Performance vs. Profit Plan [Pretax Adjusted Earnings]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  % Actual  to Plan

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  105.0

  	
  %

  	 

	
  Knockout < 90% Unless ROE
  of "X"

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  (To be determined after
  budgets are final)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  C. Balanced
  Performance Points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Index (A x B)

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  74.4

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  D. Target
  Incentive [40%-70%]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Target Incentive

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  60.0

  	
  %

  	 

	
  Target Incentive is bank
  specific and is determined based on a combination of Pretax Adjusted Earnings
  and Net Controllable Revenue/FTE.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  E. Base
  Balanced Incentive

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  (D x C) / 100

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  44.6

  	
  %

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  F. Bonus
  Incentive (if A >= 50 and B>= 100%)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  % increase in 2001 plan vs
  2000 actual Pretax Adjusted Earnings

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  10.0

  	
  %

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  0.0-2.9% growth =                                                0%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  3.0-5.9% growth =                                                5%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  6.0-8.9% growth =                                              10%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  > 9% growth =                                                                15%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  G. Total
  Balanced Incentive Percentage

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  54.6

  	
  %

  	 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  TOTAL
  INCENTIVE PAYOUT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	 

	
  Base Salary

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Total Balances Incentive
  Percentage

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  54.6

  	
  %

  	 

	
  Total Payout

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  54,629

  	
   

  
											



 


16

















 


2002 CFB Balanced
Scorecard


Regional Financial
Centers/Community Financial Centers


Performance Measurement Score - President/Manager


 


(Changes made from the 2001 scorecard to the 2002 scorecard
are highlighted in blue.)


 


CFC
President/Manager Example


 


	
  Sales
  Measurements (Weight 45%):

  	
   

  	
  Score

  	
   

  	
  Weight

  	
   

  	
  Weighted

  Score

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Number of
  Sales/FTE/Week

  	
   

  	
  57.3

  	
   

  	
  40

  	
  %

  	
  22.9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 1 avg score was 2.95 =
  0 points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 2 avg score was 3.65 =
  50 points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 3 avg score was 4.50 =
  75 points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 4 avg score was 5.70 =
  100 points + 4 Bonus Points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annual Performance =
  [(0+50+75+104)/4 = 57.25]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2. New Customer
  Cross-Sell Ratio

  	
   

  	
  57.0

  	
   

  	
  30

  	
  %

  	
  17.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 1 avg score was 1.50 =
  25 points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 2 avg score was 1.65 =
  25 points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 3 avg score was 2.86 =
  100 points + 3 Bonus Points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quarter 4 avg score was 2.20 =
  75 points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Annual Performance =
  [(25+25+103+75)/4 = 57]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3. Campaign
  Performance

  	
   

  	
  77.0

  	
   

  	
  30

  	
  %

  	
  23.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Campaign # 1 was 95% of goal =
  25 points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Campaign # 2 was 130% of goal
  = 100 points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Campaign # 3 was 180% of goal
  = 100 points + 6 Bonus Points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Campaign Performance =
  [(25+100+106)/3=77]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL SALES MEASUREMENT SCORE

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
  63.1

  	
   

  



 


	
  Financial
  Measurements (Weight 45%):

  	
   

  	
  Actual

  	
   

  	
  Score

  	
   

  	
  Weight

  	
   

  	
  Weighted

  Score

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1. Net
  Controllable Revenue/FTE 

  = 100 points + 10 Bonus
  Points

  	
   

  	
  $

  	
  290,000

  	
   

  	
  110.0

  	
   

  	
  30

  	
  %

  	
  33.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.
  Controllable NII/FTE

  	
   

  	
  $

  	
  51,000

  	
   

  	
  50.0

  	
   

  	
  20

  	
  %

  	
  10.0

  	
   

  
	
  3. Loan Fee
  as % Plan 

  = 100 points + 5 Bonus
  Points

  	
   

  	
  135.0

  	
  %

  	
  105.0

  	
   

  	
  20

  	
  %

  	
  21.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4. Investment
  Product Sales as % Plan

  	
   

  	
  85.0

  	
  %

  	
  0.0

  	
   

  	
  30

  	
  %

  	
  0.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL FINANCIAL MEAUREMENT SCORE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
  64.0

  	
   

  



 


	
  Credit
  Measurements (Weight 10%):

  	
   

  	
  Actual

  	
   

  	
  Score

  	
   

  	
  Weight

  	
   

  	
  Weighted

  Score

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8. CFB Credit
  Goal

  	
   

  	
  1.35

  	
   

  	
  100.0

  	
   

  	
  100

  	
  %

  	
  100.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL CREDIT MEASUREMENT SCORE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  100

  	
  %

  	
  100.0

  	
   

  



 


17

















 


2002 CFB Balanced
Scorecard


Regional Financial
Centers/Community Financial Centers


AIP Calculation - 
President/Manager


 


(Changes made from the 2001 scorecard to the 2002 scorecard
are highlighted in blue.)


CFC
President/Manager Example


 


	
   

  	
   

  	
  Score

  	
   

  	
  Weight

  	
   

  	
  Points

  	
   

  
	
  A.  Balanced Scorecard Points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sales Measurement Score

  	
   

  	
  63.1

  	
   

  	
  45

  	
  %

  	
  28.4

  	
   

  
	
  Financial Measurement Score

  	
   

  	
  64.0

  	
   

  	
  45

  	
  %

  	
  28.8

  	
   

  
	
  Credit Measurement Score

  	
   

  	
  100.0

  	
   

  	
  10

  	
  %

  	
  10.0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL
  PERFORMANCE POINTS

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  67.2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.  Performance vs. Profit Plan [Pretax
  Adjusted Earnings

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  % Actual  to Plan

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  105.0

  	
  %

  
	
  Knockout < 90% Unless ROE
  of "X"

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (To be determined after
  budgets are final)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.  Balanced Performance Points

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Index (A x B)

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  70.6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D.  Target Incentive [40%-70%]

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Target Incentive

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  60.0

  	
  %

  
	
  Target Incentive is bank specific and
  is determined based on a combination of Pretax Adjusted Earnings and Net
  Controllable Revenue/FTE.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E.  Base Balanced Incentive

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (D x C) / 100

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  42.3

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F.  Bonus Incentive (if A >= 50 and B>=
  100%)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  % increase in 2001 plan vs
  2000 actual Pretax Adjusted Earnings

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  10.0

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  0.0-2.9% growth =                        0%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.0-5.9% growth =                        5%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.0-8.9% growth =                  10%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  > 9% growth =                                    15%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  G.  Total Balanced Incentive Percentage

  	
   

  	
   

  	
   

  	
   

  	
  =

  	
  52.3

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL
  INCENTIVE PAYOUT

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Base Salary

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  100,000

  	
   

  
	
  Total Balances Incentive
  Percentage

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  52.3

  	
  %

  
	
  Total Payout

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  52,333

  	
   

  



 


18

















 


2002 Balanced
Scorecard


Regional Financial
Centers/Community Financial Centers


Designated Participants


 


	
  Location

  	
   

  	
  Name

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  



 


19