Document:

<PAGE>

                                                               EXHIBIT 10.7

                              PANHANDLE STATE BANK

                  2003-2005 LONG TERM EXECUTIVE INCENTIVE PLAN
                                  PLAN DOCUMENT

                                  January 2003

                         AMENDED EFFECTIVE MARCH 4, 2005

<PAGE>

TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                       PAGE
-------                                       ----
<S>                                           <C>
Purpose                                        3

Administration                                 3

Plan Description                               3

Eligibility                                    3

Size of Award Opportunities                    4

Performance Criteria and Goals                 4

Payout Schedule                                4

Withholding                                    4

Payment                                        4

Automatic Vesting                              4

No Guarantee of Employment                     5

Modification and Termination                   5

Extraordinary Items                            6

Termination                                    6

         Exhibit "A" Participants
         Exhibit "B" Matrix of Performance
</TABLE>

                                       2
<PAGE>

                              PANHANDLE STATE BANK
                       2003-2005 LONG-TERM INCENTIVE PLAN

This document describes the 2003-2005 Long-Term Incentive Plan (the Plan) for
Panhandle State Bank (the Bank).

1.    PURPOSE.

      The purpose of the Plan is to provide motivation and direction to key
      executives to achieve the long-term strategic goals of the Bank. Specific
      objectives of the Plan include:

      -     Support the Bank's long-term strategic plan.

      -     Provide long-term orientation to decision making

      -     Focus participants' attention on maximizing long-term shareholder
            value.

2.    ADMINISTRATION.

      The Plan will be administered by the Compensation Committee of the Board
      of Directors of Intermountain Community Bancorp (the Committee). The
      Committee will assure that the Plan is implemented and maintained
      according to Plan provisions.

3.    PLAN DESCRIPTION.

      The Plan will provide participants with long-term financial reward
      opportunities based on achieving minimum levels of long-term performance
      goals. The Plan consists of a matrix which will reward the participants
      providing the minimum long-term corporate goals are obtained, and, if
      achieved, stock grants will be provided to Plan participants such that
      fifty (50%) percent of the long-term reward will be provided to Plan
      participants in 2006 and the remaining fifty (50%) percent to be provided
      in 2007. The minimum performance levels are to be based upon a three (3)
      year running average of return on equity and net asset growth.

4.    ELIGIBILITY.

      Participants in the Plan will include key members of the executive team of
      the Bank. The CEO of the Bank will recommend who participates in the Plan
      for Committee approval. The CEO will communicate such participation to
      each participant at the beginning of each Plan Performance Period.
      Participants must be continuously employed at the Bank for all three (3)
      years of the Long-Term Plan and must further remain employed until
      December 1, 2006, in order to receive the first half of the grant and
      continue to be employed until December 1, 2007, for the second half of the
      grant. Participants for the 2003-2005 Long-Term Plan are listed on Exhibit
      "A" of this Plan.

                                       3
<PAGE>

      At the beginning of each calendar year, the CEO will review and, if
      appropriate, revise Plan participation for the remaining period of the
      Long-Term Plan.

5.    SIZE OF AWARD OPPORTUNITIES.

      To be most effective, payout opportunities must be meaningful and
      competitive. To accomplish this, there has been established a matrix which
      will award participants for bank performance so long as minimum levels of
      return on equity and average asset growth over a three year period are
      met. If the Bank's performance is in excess of the minimums, the Plan's
      participant benefits will increase as performance increases. The
      performance matrix for each participant in this Plan is attached hereto as
      Exhibit "B". The stock grants awarded shall be adjusted for any stock
      splits/dividends issued during the term of the Plan.

6.    PERFORMANCE CRITERIA AND GOALS.

      The performance criteria of consolidated average annual return on equity
      of Intermountain Community Bancorp and consolidated average annual asset
      growth of Intermountain Community Bancorp for the three-year period
      covering fiscal years 2003 through 2005 will support the maximization of
      long-term shareholder value. At the beginning of each fiscal year, the CEO
      will provide to the Committee the performance pursuant to the Plan for the
      prior calendar year.

7.    PAYOUT SCHEDULE.

      The benefits, if any, to be paid to the executives shall vest such that
      fifty (50%) percent of the benefits are to be paid on December 1, 2006,
      and the remaining fifty (50%) percent to be paid on December 1, 2007. As a
      condition precedent to the award of any benefits pursuant to this Plan,
      the executive will be required to remain employed by the Bank at the time
      of the payout of benefits.

8.    WITHHOLDING.

      The Bank shall deduct the regulatory tax withholding amounts from any
      earned awards that are paid, and participant shall be responsible for any
      tax implications associated with the award.

9.    PAYMENT.

      Benefits to be awarded pursuant to this Plan, if any, shall be in the form
      of a stock grant to the executive according to the applicable matrix
      attached as Exhibit "B".

10.   AUTOMATIC VESTING.

      If a change in control of Intermountain Community Bancorp occurs before
      the end of the

                                       4
<PAGE>

      three-year period covering fiscal years 2003 through 2005, the stock
      grants awarded to participants under the Plan shall be determined as of
      the date the change in control occurred rather than as of the end of the
      three-year period. The stock grants shall be determined by the Committee
      based on Intermountain Community Bancorp's consolidated average annual
      return on equity and consolidated average annual asset growth through the
      most recent quarter end before the change in control occurred. If the most
      recent quarter end is an interim period, the Committee may make
      annualizing or other appropriate adjustments to consolidated average
      annual return on equity and consolidated average annual asset growth. The
      stock grants shall be similarly determined for any participant who dies or
      who becomes disabled (as determined by the Committee) before the end of
      the three-year period, based on consolidated average annual return on
      equity and consolidated average annual asset growth through the most
      recent quarter end before death or disability occurred. Once a
      participant's stock grant is determined after a change in control or after
      the participant's death or disability, the stock grant shall be paid to
      the participant as promptly as practicable, rather than according to the
      schedule set forth in section 7 (50% on December 1, 2006 and 50% on
      December 1, 2007), and the requirement that a participant remain employed
      through December 1, 2007 to claim entitlement to the full amount of his
      stock grant shall not apply. If a change in control occurs after December
      31, 2005 or if the participant dies or becomes disabled after December 31,
      2005 but before the stock grant is paid according to the schedule set
      forth in section 7, the stock grant shall likewise be paid to the
      participant as promptly as practicable and the requirement that the
      participant remain employed through December 1, 2007 to claim entitlement
      to the full amount of his stock grant shall not apply.

      For purposes of this section 10, the term change in control shall mean a
      change in the ownership of Intermountain Community Bancorp, a change in
      effective control of Intermountain Community Bancorp, or a change in the
      ownership of a substantial portion of the assets of Intermountain
      Community Bancorp, as those terms are defined in Internal Revenue Code
      section 409A or in regulations or guidance of general applicability issued
      by the Treasury Department under Section 409A of the Internal Revenue
      Code, including the Treasury Department's Notice 2005-1, Part IV.B
      (questions 11 through 14), contained in Internal Revenue Bulletin 2005-2
      (January 10, 2005). For purposes of this section 10, the term disability
      means that, because of any medically determinable physical or mental
      impairment that can be expected to result in death or can be expected to
      last for a continuous period of at least 12 months, the participant is
      unable to engage in any substantial gainful activity or the participant is
      receiving income replacement benefits for a period of at least three
      months under an accident and health plan covering employees of the Bank.
      The existence of disability shall be determined by the Committee.

11.   NO GUARANTEE OF EMPLOYMENT.

      Nothing in the Plan or any Plan materials guarantees employment at the
      Bank. Further, this Plan should not be implied as any contract agreement.

12.   MODIFICATION AND TERMINATION.

      The Committee has the right to amend or terminate the Plan at any time.
      However,

                                       5
<PAGE>

      termination or modification of the Plan during a Performance Period will
      not negatively affect performance goals and payout opportunities up until
      the point of termination.

13.   EXTRAORDINARY ITEMS.

      The Committee has the authority but no obligation to exclude any
      extraordinary accounting items such as changes in generally accepted
      accounting procedures, sales or major assets or regulatory changes.

14.   TERMINATION.

      Participants must be continuously employed by the Bank throughout the
      2003-2005 performance period and must further continue to be employed
      until December 1, 2006, in order to receive fifty (50%) percent of the
      benefits and December 1, 2007, in order to receive the balance of the
      benefits. Participants who become fully disabled or die during the
      long-term Plan will receive benefits pursuant to the Plan on a pro-rata
      basis based upon the performance results through the most recent quarter
      end. Participants who voluntarily or involuntarily terminate their
      employment prior to receiving benefits under this Plan shall forfeit
      automatically their rights to any award.

                                       6
<PAGE>

                                          Exhibit "A" - Participants

                                          2003 - 2005 Long Term Plan

                           Curt Hecker         Chief Executive Officer

                           Jerry Smith         President, Branch Administration

                           Doug Wright         Executive Vice President
                                               & Chief Financial Officer

                           John Nagel          Senior Vice President
                                               & Credit Administrator

                                       7
<PAGE>

PANHANDLE BANK
Long-Term Incentive Program

COMPANY TOTAL SHARES

<TABLE>
<CAPTION>
                                                               Asset Growth
            ------------------------------------------------------------------------------------------------------------------
 ROE         58.0%       60.0%       62.0%       64.0%       66.0%       68.0%       70.0%       72.0%       74.0%       76.0%
-----       ------      ------      ------      ------      ------      ------      ------      ------      ------      ------
<S>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
12.00%      10,060      10,720      11,380      12,040      12,700      13,360      14,020      14,680      15,340      16,000
12.25%      10,240      10,920      11,600      12,280      12,960      13,640      14,320      15,000      15,680      16,360
12.50%      10,480      11,180      11,880      12,580      13,280      13,980      14,680      15,380      16,080      16,780
12.75%      10,720      11,440      12,160      12,880      13,600      14,320      15,040      15,760      16,480      17,200
13.00%      10,960      11,700      12,440      13,180      13,920      14,660      15,400      16,140      16,880      17,620
13.25%      11,210      11,950      12,690      13,430      14,170      14,910      15,650      16,390      17,130      17,870
13.50%      11,480      12,240      13,000      13,760      14,520      15,280      16,040      16,800      17,560      18,320
13.75%      11,740      12,530      13,320      14,110      14,900      15,690      16,480      17,270      18,060      18,850
14.00%      12,000      12,800      13,600      14,400      15,200      16,000      16,800      17,600      18,400      19,200
14.25%      12,270      13,090      13,910      14,730      15,550      16,370      17,190      18,010      18,830      19,650
14.50%      12,560      13,400      14,240      15,080      15,920      16,760      17,600      18,440      19,280      20,120
14.75%      12,840      13,700      14,560      15,420      16,280      17,140      18,000      18,860      19,720      20,580
15.00%      13,120      14,000      14,880      15,760      16,640      17,520      18,400      19,280      20,160      21,040
15.25%      13,440      14,340      15,240      16,140      17,040      17,940      18,840      19,740      20,640      21,540
15.50%      13,750      14,670      15,590      16,510      17,430      18,350      19,270      20,190      21,110      22,030
15.75%      14,060      15,010      15,960      16,910      17,860      18,810      19,760      20,710      21,660      22,610
16.00%      14,380      15,340      16,300      17,260      18,220      19,180      20,140      21,100      22,060      23,020
16.25%      14,700      15,670      16,640      17,610      18,580      19,550      20,520      21,490      22,460      23,430
16.50%      15,040      16,050      17,060      18,070      19,080      20,090      21,100      22,110      23,120      24,130
16.75%      15,380      16,400      17,420      18,440      19,460      20,480      21,500      22,520      23,540      24,560
17.00%      15,740      16,790      17,840      18,890      19,940      20,990      22,040      23,090      24,140      25,190
17.25%      16,100      17,180      18,260      19,340      20,420      21,500      22,580      23,660      24,740      25,820
17.50%      16,450      17,550      18,650      19,750      20,850      21,950      23,050      24,150      25,250      26,350
17.75%      16,840      17,960      19,080      20,200      21,320      22,440      23,560      24,680      25,800      26,920
18.00%      17,220      18,360      19,500      20,640      21,780      22,920      24,060      25,200      26,340      27,480
18.25%      17,620      18,800      19,980      21,160      22,340      23,520      24,700      25,880      27,060      28,240
18.50%      18,030      19,220      20,410      21,600      22,790      23,980      25,170      26,360      27,550      28,740
18.75%      18,430      19,660      20,890      22,120      23,350      24,580      25,810      27,040      28,270      29,500
19.00%      18,850      20,110      21,370      22,630      23,890      25,150      26,410      27,670      28,930      30,190
19.25%      19,280      20,570      21,860      23,150      24,440      25,730      27,020      28,310      29,600      30,890
19.50%      19,720      21,040      22,360      23,680      25,000      26,320      27,640      28,960      30,280      31,600
19.75%      20,170      21,510      22,850      24,190      25,530      26,870      28,210      29,550      30,890      32,230
20.00%      20,630      22,010      23,390      24,770      26,150      27,530      28,910      30,290      31,670      33,050
20.25%      21,100      22,500      23,900      25,300      26,700      28,100      29,500      30,900      32,300      33,700
20.50%      21,590      23,030      24,470      25,910      27,350      28,790      30,230      31,670      33,110      34,550
20.75%      22,080      23,560      25,040      26,520      28,000      29,480      30,960      32,440      33,920      35,400
21.00%      22,590      24,100      25,610      27,120      28,630      30,140      31,650      33,160      34,670      36,180
21.25%      23,100      24,640      26,180      27,720      29,260      30,800      32,340      33,880      35,420      36,960
21.50%      23,620      25,200      26,780      28,360      29,940      31,520      33,100      34,680      36,260      37,840
21.75%      24,160      25,780      27,400      29,020      30,640      32,260      33,880      35,500      37,120      38,740
22.00%      24,760      26,400      28,040      29,680      31,320      32,960      34,600      36,240      37,880      39,520

<CAPTION>
                                                         Asset Growth
            ------------------------------------------------------------------------------------------------------
 ROE         78.0%       80.0%       82.0%       84.0%       86.0%       88.0%       90.0%       92.0%       94.0%
-----       ------      ------      ------      ------      ------      ------      ------      ------      ------
<S>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
12.00%      16,700      17,330      17,960      18,590      19,220      19,850      20,480      21,110      21,740
12.25%      17,080      17,720      18,360      19,000      19,640      20,280      20,920      21,560      22,200
12.50%      17,470      18,130      18,790      19,450      20,110      20,770      21,430      22,090      22,750
12.75%      17,860      18,530      19,200      19,870      20,540      21,210      21,880      22,550      23,220
13.00%      18,270      18,950      19,630      20,310      20,990      21,670      22,350      23,030      23,710
13.25%      18,690      19,390      20,090      20,790      21,490      22,190      22,890      23,590      24,290
13.50%      19,120      19,840      20,560      21,280      22,000      22,720      23,440      24,160      24,880
13.75%      19,560      20,300      21,040      21,780      22,520      23,260      24,000      24,740      25,480
14.00%      20,000      20,750      21,500      22,250      23,000      23,750      24,500      25,250      26,000
14.25%      20,460      21,220      21,980      22,740      23,500      24,260      25,020      25,780      26,540
14.50%      20,920      21,710      22,500      23,290      24,080      24,870      25,660      26,450      27,240
14.75%      21,400      22,200      23,000      23,800      24,600      25,400      26,200      27,000      27,800
15.00%      21,890      22,710      23,530      24,350      25,170      25,990      26,810      27,630      28,450
15.25%      22,390      23,230      24,070      24,910      25,750      26,590      27,430      28,270      29,110
15.50%      22,910      23,770      24,630      25,490      26,350      27,210      28,070      28,930      29,790
15.75%      23,430      24,310      25,190      26,070      26,950      27,830      28,710      29,590      30,470
16.00%      23,960      24,860      25,760      26,660      27,560      28,460      29,360      30,260      31,160
16.25%      24,500      25,420      26,340      27,260      28,180      29,100      30,020      30,940      31,860
16.50%      25,060      26,010      26,960      27,910      28,860      29,810      30,760      31,710      32,660
16.75%      25,640      26,600      27,560      28,520      29,480      30,440      31,400      32,360      33,320
17.00%      26,220      27,190      28,160      29,130      30,100      31,070      32,040      33,010      33,980
17.25%      26,820      27,830      28,840      29,850      30,860      31,870      32,880      33,890      34,900
17.50%      27,430      28,450      29,470      30,490      31,510      32,530      33,550      34,570      35,590
17.75%      28,060      29,120      30,180      31,240      32,300      33,360      34,420      35,480      36,540
18.00%      28,700      29,780      30,860      31,940      33,020      34,100      35,180      36,260      37,340
18.25%      29,360      30,460      31,560      32,660      33,760      34,860      35,960      37,060      38,160
18.50%      30,040      31,160      32,280      33,400      34,520      35,640      36,760      37,880      39,000
18.75%      30,720      31,880      33,040      34,200      35,360      36,520      37,680      38,840      40,000
19.00%      31,420      32,600      33,780      34,960      36,140      37,320      38,500      39,680      40,860
19.25%      32,140      33,340      34,540      35,740      36,940      38,140      39,340      40,540      41,740
19.50%      32,880      34,120      35,360      36,600      37,840      39,080      40,320      41,560      42,800
19.75%      33,630      34,890      36,150      37,410      38,670      39,930      41,190      42,450      43,710
20.00%      34,390      35,690      36,990      38,290      39,590      40,890      42,190      43,490      44,790
20.25%      35,180      36,500      37,820      39,140      40,460      41,780      43,100      44,420      45,740
20.50%      35,980      37,320      38,660      40,000      41,340      42,680      44,020      45,360      46,700
20.75%      36,800      38,180      39,560      40,940      42,320      43,700      45,080      46,460      47,840
21.00%      37,640      39,050      40,460      41,870      43,280      44,690      46,100      47,510      48,920
21.25%      38,500      39,950      41,400      42,850      44,300      45,750      47,200      48,650      50,100
21.50%      39,380      40,860      42,340      43,820      45,300      46,780      48,260      49,740      51,220
21.75%      40,280      41,800      43,320      44,840      46,360      47,880      49,400      50,920      52,440
22.00%      41,240      42,780      44,320      45,860      47,400      48,940      50,480      52,020      53,600
</TABLE>

<PAGE>

PANHANDLE BANK
Long-Term Incentive Program

Executive - JS

NUMBER OF SHARES

<TABLE>
<CAPTION>
                                                               Asset Growth
             -----------------------------------------------------------------------------------------------------------------
 ROE         58.0%       60.0%       62.0%       64.0%       66.0%       68.0%       70.0%       72.0%       74.0%       76.0%
-----        -----       -----       -----       -----       -----       -----       -----       -----       -----       -----
<S>          <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
12.00%       1,880       2,000       2,120       2,240       2,360       2,480       2,600       2,720       2,840       2,960
12.25%       1,910       2,040       2,170       2,300       2,430       2,560       2,690       2,820       2,950       3,080
12.50%       1,960       2,090       2,220       2,350       2,480       2,610       2,740       2,870       3,000       3,130
12.75%       2,000       2,130       2,260       2,390       2,520       2,650       2,780       2,910       3,040       3,170
13.00%       2,050       2,190       2,330       2,470       2,610       2,750       2,890       3,030       3,170       3,310
13.25%       2,090       2,230       2,370       2,510       2,650       2,790       2,930       3,070       3,210       3,350
13.50%       2,140       2,280       2,420       2,560       2,700       2,840       2,980       3,120       3,260       3,400
13.75%       2,190       2,340       2,490       2,640       2,790       2,940       3,090       3,240       3,390       3,540
14.00%       2,240       2,390       2,540       2,690       2,840       2,990       3,140       3,290       3,440       3,590
14.25%       2,290       2,440       2,590       2,740       2,890       3,040       3,190       3,340       3,490       3,640
14.50%       2,350       2,510       2,670       2,830       2,990       3,150       3,310       3,470       3,630       3,790
14.75%       2,400       2,560       2,720       2,880       3,040       3,200       3,360       3,520       3,680       3,840
15.00%       2,450       2,610       2,770       2,930       3,090       3,250       3,410       3,570       3,730       3,890
15.25%       2,510       2,680       2,850       3,020       3,190       3,360       3,530       3,700       3,870       4,040
15.50%       2,570       2,740       2,910       3,080       3,250       3,420       3,590       3,760       3,930       4,100
15.75%       2,630       2,810       2,990       3,170       3,350       3,530       3,710       3,890       4,070       4,250
16.00%       2,690       2,870       3,050       3,230       3,410       3,590       3,770       3,950       4,130       4,310
16.25%       2,750       2,930       3,110       3,290       3,470       3,650       3,830       4,010       4,190       4,370
16.50%       2,810       3,000       3,190       3,380       3,570       3,760       3,950       4,140       4,330       4,520
16.75%       2,870       3,060       3,250       3,440       3,630       3,820       4,010       4,200       4,390       4,580
17.00%       2,940       3,140       3,340       3,540       3,740       3,940       4,140       4,340       4,540       4,740
17.25%       3,010       3,210       3,410       3,610       3,810       4,010       4,210       4,410       4,610       4,810
17.50%       3,070       3,280       3,490       3,700       3,910       4,120       4,330       4,540       4,750       4,960
17.75%       3,140       3,350       3,560       3,770       3,980       4,190       4,400       4,610       4,820       5,030
18.00%       3,220       3,430       3,640       3,850       4,060       4,270       4,480       4,690       4,900       5,110
18.25%       3,290       3,510       3,730       3,950       4,170       4,390       4,610       4,830       5,050       5,270
18.50%       3,370       3,590       3,810       4,030       4,250       4,470       4,690       4,910       5,130       5,350
18.75%       3,440       3,670       3,900       4,130       4,360       4,590       4,820       5,050       5,280       5,510
19.00%       3,520       3,760       4,000       4,240       4,480       4,720       4,960       5,200       5,440       5,680
19.25%       3,600       3,840       4,080       4,320       4,560       4,800       5,040       5,280       5,520       5,760
19.50%       3,680       3,930       4,180       4,430       4,680       4,930       5,180       5,430       5,680       5,930
19.75%       3,770       4,020       4,270       4,520       4,770       5,020       5,270       5,520       5,770       6,020
20.00%       3,850       4,110       4,370       4,630       4,890       5,150       5,410       5,670       5,930       6,190
20.25%       3,940       4,200       4,460       4,720       4,980       5,240       5,500       5,760       6,020       6,280
20.50%       4,030       4,300       4,570       4,840       5,110       5,380       5,650       5,920       6,190       6,460
20.75%       4,120       4,400       4,680       4,960       5,240       5,520       5,800       6,080       6,360       6,640
21.00%       4,220       4,500       4,780       5,060       5,340       5,620       5,900       6,180       6,460       6,740
21.25%       4,310       4,600       4,890       5,180       5,470       5,760       6,050       6,340       6,630       6,920
21.50%       4,410       4,700       4,990       5,280       5,570       5,860       6,150       6,440       6,730       7,020
21.75%       4,510       4,810       5,110       5,410       5,710       6,010       6,310       6,610       6,910       7,210
22.00%       4,610       4,920       5,230       5,540       5,850       6,160       6,470       6,780       7,090       7,400

<CAPTION>
                                                         Asset Growth
             -----------------------------------------------------------------------------------------------------
 ROE         78.0%       80.0%       82.0%       84.0%       86.0%       88.0%       90.0%       92.0%       94.0%
-----        -----       -----       -----       -----       -----       -----       -----       -----       -----
<S>          <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
12.00%       3,120       3,240       3,360       3,480       3,600       3,720       3,840       3,960       4,050
12.25%       3,190       3,310       3,430       3,550       3,670       3,790       3,910       4,030       4,150
12.50%       3,260       3,380       3,500       3,620       3,740       3,860       3,980       4,100       4,220
12.75%       3,330       3,450       3,570       3,690       3,810       3,930       4,050       4,170       4,290
13.00%       3,410       3,540       3,670       3,800       3,930       4,060       4,190       4,320       4,450
13.25%       3,490       3,620       3,750       3,880       4,010       4,140       4,270       4,400       4,530
13.50%       3,570       3,700       3,830       3,960       4,090       4,220       4,350       4,480       4,610
13.75%       3,650       3,790       3,930       4,070       4,210       4,350       4,490       4,630       4,770
14.00%       3,730       3,870       4,010       4,150       4,290       4,430       4,570       4,710       4,850
14.25%       3,820       3,960       4,100       4,240       4,380       4,520       4,660       4,800       4,940
14.50%       3,910       4,060       4,210       4,360       4,510       4,660       4,810       4,960       5,110
14.75%       4,000       4,150       4,300       4,450       4,600       4,750       4,900       5,050       5,200
15.00%       4,090       4,240       4,390       4,540       4,690       4,840       4,990       5,140       5,290
15.25%       4,180       4,340       4,500       4,660       4,820       4,980       5,140       5,300       5,460
15.50%       4,280       4,440       4,600       4,760       4,920       5,080       5,240       5,400       5,560
15.75%       4,380       4,540       4,700       4,860       5,020       5,180       5,340       5,500       5,660
16.00%       4,480       4,650       4,820       4,990       5,160       5,330       5,500       5,670       5,840
16.25%       4,580       4,750       4,920       5,090       5,260       5,430       5,600       5,770       5,940
16.50%       4,680       4,860       5,040       5,220       5,400       5,580       5,760       5,940       6,120
16.75%       4,790       4,970       5,150       5,330       5,510       5,690       5,870       6,050       6,230
17.00%       4,900       5,080       5,260       5,440       5,620       5,800       5,980       6,160       6,340
17.25%       5,010       5,200       5,390       5,580       5,770       5,960       6,150       6,340       6,530
17.50%       5,120       5,310       5,500       5,690       5,880       6,070       6,260       6,450       6,640
17.75%       5,240       5,440       5,640       5,840       6,040       6,240       6,440       6,640       6,840
18.00%       5,360       5,560       5,760       5,960       6,160       6,360       6,560       6,760       6,960
18.25%       5,480       5,690       5,900       6,110       6,320       6,530       6,740       6,950       7,160
18.50%       5,610       5,820       6,030       6,240       6,450       6,660       6,870       7,080       7,290
18.75%       5,740       5,960       6,180       6,400       6,620       6,840       7,060       7,280       7,500
19.00%       5,870       6,090       6,310       6,530       6,750       6,970       7,190       7,410       7,630
19.25%       6,000       6,230       6,460       6,690       6,920       7,150       7,380       7,610       7,840
19.50%       6,140       6,370       6,600       6,830       7,060       7,290       7,520       7,750       7,980
19.75%       6,280       6,520       6,760       7,000       7,240       7,480       7,720       7,960       8,200
20.00%       6,420       6,660       6,900       7,140       7,380       7,620       7,860       8,100       8,340
20.25%       6,570       6,820       7,070       7,320       7,570       7,820       8,070       8,320       8,570
20.50%       6,720       6,970       7,220       7,470       7,720       7,970       8,220       8,470       8,720
20.75%       6,870       7,130       7,390       7,650       7,910       8,170       8,430       8,690       8,950
21.00%       7,030       7,290       7,550       7,810       8,070       8,330       8,590       8,850       9,110
21.25%       7,190       7,460       7,730       8,000       8,270       8,540       8,810       9,080       9,350
21.50%       7,350       7,630       7,910       8,190       8,470       8,750       9,030       9,310       9,590
21.75%       7,520       7,800       8,080       8,360       8,640       8,920       9,200       9,480       9,760
22.00%       7,690       7,980       8,270       8,560       8,850       9,140       9,430       9,720      10,000
</TABLE>

<PAGE>

PANHANDLE BANK
Long-Term Incentive Program

Executive - DW

NUMBER OF SHARES

<TABLE>
<CAPTION>
                                                               Asset Growth
             -----------------------------------------------------------------------------------------------------------------
 ROE         58.0%       60.0%       62.0%       64.0%       66.0%       68.0%       70.0%       72.0%       74.0%       76.0%
-----        -----       -----       -----       -----       -----       -----       -----       -----       -----       -----
<S>          <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
12.00%       1,790       1,910       2,030       2,150       2,270       2,390       2,510       2,630       2,750       2,870
12.25%       1,810       1,930       2,050       2,170       2,290       2,410       2,530       2,650       2,770       2,890
12.50%       1,850       1,970       2,090       2,210       2,330       2,450       2,570       2,690       2,810       2,930
12.75%       1,900       2,030       2,160       2,290       2,420       2,550       2,680       2,810       2,940       3,070
13.00%       1,940       2,070       2,200       2,330       2,460       2,590       2,720       2,850       2,980       3,110
13.25%       1,980       2,110       2,240       2,370       2,500       2,630       2,760       2,890       3,020       3,150
13.50%       2,030       2,170       2,310       2,450       2,590       2,730       2,870       3,010       3,150       3,290
13.75%       2,080       2,220       2,360       2,500       2,640       2,780       2,920       3,060       3,200       3,340
14.00%       2,120       2,260       2,400       2,540       2,680       2,820       2,960       3,100       3,240       3,380
14.25%       2,170       2,320       2,470       2,620       2,770       2,920       3,070       3,220       3,370       3,520
14.50%       2,220       2,370       2,520       2,670       2,820       2,970       3,120       3,270       3,420       3,570
14.75%       2,270       2,420       2,570       2,720       2,870       3,020       3,170       3,320       3,470       3,620
15.00%       2,320       2,480       2,640       2,800       2,960       3,120       3,280       3,440       3,600       3,760
15.25%       2,380       2,540       2,700       2,860       3,020       3,180       3,340       3,500       3,660       3,820
15.50%       2,430       2,590       2,750       2,910       3,070       3,230       3,390       3,550       3,710       3,870
15.75%       2,480       2,650       2,820       2,990       3,160       3,330       3,500       3,670       3,840       4,010
16.00%       2,540       2,710       2,880       3,050       3,220       3,390       3,560       3,730       3,900       4,070
16.25%       2,600       2,770       2,940       3,110       3,280       3,450       3,620       3,790       3,960       4,130
16.50%       2,660       2,840       3,020       3,200       3,380       3,560       3,740       3,920       4,100       4,280
16.75%       2,720       2,900       3,080       3,260       3,440       3,620       3,800       3,980       4,160       4,340
17.00%       2,780       2,970       3,160       3,350       3,540       3,730       3,920       4,110       4,300       4,490
17.25%       2,840       3,030       3,220       3,410       3,600       3,790       3,980       4,170       4,360       4,550
17.50%       2,910       3,100       3,290       3,480       3,670       3,860       4,050       4,240       4,430       4,620
17.75%       2,980       3,180       3,380       3,580       3,780       3,980       4,180       4,380       4,580       4,780
18.00%       3,040       3,240       3,440       3,640       3,840       4,040       4,240       4,440       4,640       4,840
18.25%       3,110       3,320       3,530       3,740       3,950       4,160       4,370       4,580       4,790       5,000
18.50%       3,190       3,400       3,610       3,820       4,030       4,240       4,450       4,660       4,870       5,080
18.75%       3,260       3,480       3,700       3,920       4,140       4,360       4,580       4,800       5,020       5,240
19.00%       3,330       3,550       3,770       3,990       4,210       4,430       4,650       4,870       5,090       5,310
19.25%       3,410       3,640       3,870       4,100       4,330       4,560       4,790       5,020       5,250       5,480
19.50%       3,490       3,720       3,950       4,180       4,410       4,640       4,870       5,100       5,330       5,560
19.75%       3,560       3,800       4,040       4,280       4,520       4,760       5,000       5,240       5,480       5,720
20.00%       3,650       3,890       4,130       4,370       4,610       4,850       5,090       5,330       5,570       5,810
20.25%       3,730       3,980       4,230       4,480       4,730       4,980       5,230       5,480       5,730       5,980
20.50%       3,820       4,070       4,320       4,570       4,820       5,070       5,320       5,570       5,820       6,070
20.75%       3,910       4,170       4,430       4,690       4,950       5,210       5,470       5,730       5,990       6,250
21.00%       4,000       4,270       4,540       4,810       5,080       5,350       5,620       5,890       6,160       6,430
21.25%       4,090       4,360       4,630       4,900       5,170       5,440       5,710       5,980       6,250       6,520
21.50%       4,180       4,460       4,740       5,020       5,300       5,580       5,860       6,140       6,420       6,700
21.75%       4,280       4,570       4,860       5,150       5,440       5,730       6,020       6,310       6,600       6,890
22.00%       4,390       4,680       4,970       5,260       5,550       5,840       6,130       6,420       6,710       7,000

<CAPTION>
                                                         Asset Growth
             -----------------------------------------------------------------------------------------------------
 ROE         78.0%       80.0%       82.0%       84.0%       86.0%       88.0%       90.0%       92.0%       94.0%
-----        -----       -----       -----       -----       -----       -----       -----       -----       -----
<S>          <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
12.00%       2,950       3,060       3,170       3,280       3,390       3,500       3,610       3,720       3,850
12.25%       3,020       3,130       3,240       3,350       3,460       3,570       3,680       3,790       3,900
12.50%       3,090       3,210       3,330       3,450       3,570       3,690       3,810       3,930       4,050
12.75%       3,160       3,280       3,400       3,520       3,640       3,760       3,880       4,000       4,120
13.00%       3,230       3,350       3,470       3,590       3,710       3,830       3,950       4,070       4,190
13.25%       3,300       3,420       3,540       3,660       3,780       3,900       4,020       4,140       4,260
13.50%       3,380       3,510       3,640       3,770       3,900       4,030       4,160       4,290       4,420
13.75%       3,460       3,590       3,720       3,850       3,980       4,110       4,240       4,370       4,500
14.00%       3,540       3,670       3,800       3,930       4,060       4,190       4,320       4,450       4,580
14.25%       3,620       3,760       3,900       4,040       4,180       4,320       4,460       4,600       4,740
14.50%       3,700       3,840       3,980       4,120       4,260       4,400       4,540       4,680       4,820
14.75%       3,780       3,920       4,060       4,200       4,340       4,480       4,620       4,760       4,900
15.00%       3,870       4,020       4,170       4,320       4,470       4,620       4,770       4,920       5,070
15.25%       3,960       4,110       4,260       4,410       4,560       4,710       4,860       5,010       5,160
15.50%       4,050       4,200       4,350       4,500       4,650       4,800       4,950       5,100       5,250
15.75%       4,140       4,300       4,460       4,620       4,780       4,940       5,100       5,260       5,420
16.00%       4,230       4,390       4,550       4,710       4,870       5,030       5,190       5,350       5,510
16.25%       4,330       4,490       4,650       4,810       4,970       5,130       5,290       5,450       5,610
16.50%       4,430       4,600       4,770       4,940       5,110       5,280       5,450       5,620       5,790
16.75%       4,530       4,700       4,870       5,040       5,210       5,380       5,550       5,720       5,890
17.00%       4,630       4,800       4,970       5,140       5,310       5,480       5,650       5,820       5,990
17.25%       4,740       4,920       5,100       5,280       5,460       5,640       5,820       6,000       6,180
17.50%       4,850       5,030       5,210       5,390       5,570       5,750       5,930       6,110       6,290
17.75%       4,960       5,150       5,340       5,530       5,720       5,910       6,100       6,290       6,480
18.00%       5,070       5,260       5,450       5,640       5,830       6,020       6,210       6,400       6,590
18.25%       5,190       5,380       5,570       5,760       5,950       6,140       6,330       6,520       6,710
18.50%       5,310       5,510       5,710       5,910       6,110       6,310       6,510       6,710       6,910
18.75%       5,430       5,630       5,830       6,030       6,230       6,430       6,630       6,830       7,030
19.00%       5,550       5,760       5,970       6,180       6,390       6,600       6,810       7,020       7,230
19.25%       5,680       5,890       6,100       6,310       6,520       6,730       6,940       7,150       7,360
19.50%       5,810       6,030       6,250       6,470       6,690       6,910       7,130       7,350       7,570
19.75%       5,940       6,160       6,380       6,600       6,820       7,040       7,260       7,480       7,700
20.00%       6,080       6,310       6,540       6,770       7,000       7,230       7,460       7,690       7,920
20.25%       6,220       6,450       6,680       6,910       7,140       7,370       7,600       7,830       8,060
20.50%       6,360       6,600       6,840       7,080       7,320       7,560       7,800       8,040       8,280
20.75%       6,510       6,750       6,990       7,230       7,470       7,710       7,950       8,190       8,430
21.00%       6,660       6,910       7,160       7,410       7,660       7,910       8,160       8,410       8,660
21.25%       6,810       7,070       7,330       7,590       7,850       8,110       8,370       8,630       8,890
21.50%       6,970       7,230       7,490       7,750       8,010       8,270       8,530       8,790       9,050
21.75%       7,130       7,400       7,670       7,940       8,210       8,480       8,750       9,020       9,290
22.00%       7,310       7,580       7,850       8,120       8,390       8,660       8,930       9,200       9,500
</TABLE>

<PAGE>

PANHANDLE BANK
Long-Term Incentive Program

Executive - JN

NUMBER OF SHARES

<TABLE>
<CAPTION>
                                                               Asset Growth
             -----------------------------------------------------------------------------------------------------------------
 ROE         58.0%       60.0%       62.0%       64.0%       66.0%       68.0%       70.0%       72.0%       74.0%       76.0%
-----        -----       -----       -----       -----       -----       -----       -----       -----       -----       -----
<S>          <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
12.00%       1,360       1,450       1,540       1,630       1,720       1,810       1,900       1,990       2,080       2,170
12.25%       1,400       1,490       1,580       1,670       1,760       1,850       1,940       2,030       2,120       2,210
12.50%       1,430       1,530       1,630       1,730       1,830       1,930       2,030       2,130       2,230       2,330
12.75%       1,460       1,560       1,660       1,760       1,860       1,960       2,060       2,160       2,260       2,360
13.00%       1,490       1,590       1,690       1,790       1,890       1,990       2,090       2,190       2,290       2,390
13.25%       1,530       1,630       1,730       1,830       1,930       2,030       2,130       2,230       2,330       2,430
13.50%       1,570       1,670       1,770       1,870       1,970       2,070       2,170       2,270       2,370       2,470
13.75%       1,600       1,710       1,820       1,930       2,040       2,150       2,260       2,370       2,480       2,590
14.00%       1,640       1,750       1,860       1,970       2,080       2,190       2,300       2,410       2,520       2,630
14.25%       1,670       1,780       1,890       2,000       2,110       2,220       2,330       2,440       2,550       2,660
14.50%       1,710       1,820       1,930       2,040       2,150       2,260       2,370       2,480       2,590       2,700
14.75%       1,750       1,870       1,990       2,110       2,230       2,350       2,470       2,590       2,710       2,830
15.00%       1,790       1,910       2,030       2,150       2,270       2,390       2,510       2,630       2,750       2,870
15.25%       1,840       1,960       2,080       2,200       2,320       2,440       2,560       2,680       2,800       2,920
15.50%       1,880       2,010       2,140       2,270       2,400       2,530       2,660       2,790       2,920       3,050
15.75%       1,920       2,050       2,180       2,310       2,440       2,570       2,700       2,830       2,960       3,090
16.00%       1,960       2,090       2,220       2,350       2,480       2,610       2,740       2,870       3,000       3,130
16.25%       2,000       2,130       2,260       2,390       2,520       2,650       2,780       2,910       3,040       3,170
16.50%       2,050       2,190       2,330       2,470       2,610       2,750       2,890       3,030       3,170       3,310
16.75%       2,100       2,240       2,380       2,520       2,660       2,800       2,940       3,080       3,220       3,360
17.00%       2,150       2,290       2,430       2,570       2,710       2,850       2,990       3,130       3,270       3,410
17.25%       2,200       2,350       2,500       2,650       2,800       2,950       3,100       3,250       3,400       3,550
17.50%       2,240       2,390       2,540       2,690       2,840       2,990       3,140       3,290       3,440       3,590
17.75%       2,300       2,450       2,600       2,750       2,900       3,050       3,200       3,350       3,500       3,650
18.00%       2,350       2,510       2,670       2,830       2,990       3,150       3,310       3,470       3,630       3,790
18.25%       2,410       2,570       2,730       2,890       3,050       3,210       3,370       3,530       3,690       3,850
18.50%       2,460       2,620       2,780       2,940       3,100       3,260       3,420       3,580       3,740       3,900
18.75%       2,510       2,680       2,850       3,020       3,190       3,360       3,530       3,700       3,870       4,040
19.00%       2,570       2,740       2,910       3,080       3,250       3,420       3,590       3,760       3,930       4,100
19.25%       2,630       2,810       2,990       3,170       3,350       3,530       3,710       3,890       4,070       4,250
19.50%       2,690       2,870       3,050       3,230       3,410       3,590       3,770       3,950       4,130       4,310
19.75%       2,750       2,930       3,110       3,290       3,470       3,650       3,830       4,010       4,190       4,370
20.00%       2,810       3,000       3,190       3,380       3,570       3,760       3,950       4,140       4,330       4,520
20.25%       2,880       3,070       3,260       3,450       3,640       3,830       4,020       4,210       4,400       4,590
20.50%       2,950       3,150       3,350       3,550       3,750       3,950       4,150       4,350       4,550       4,750
20.75%       3,010       3,210       3,410       3,610       3,810       4,010       4,210       4,410       4,610       4,810
21.00%       3,080       3,290       3,500       3,710       3,920       4,130       4,340       4,550       4,760       4,970
21.25%       3,150       3,360       3,570       3,780       3,990       4,200       4,410       4,620       4,830       5,040
21.50%       3,220       3,440       3,660       3,880       4,100       4,320       4,540       4,760       4,980       5,200
21.75%       3,290       3,510       3,730       3,950       4,170       4,390       4,610       4,830       5,050       5,270
22.00%       3,380       3,600       3,820       4,040       4,260       4,480       4,700       4,920       5,140       5,360

<CAPTION>
                                                         Asset Growth
             -----------------------------------------------------------------------------------------------------
 ROE         78.0%       80.0%       82.0%       84.0%       86.0%       88.0%       90.0%       92.0%       94.0%
-----        -----       -----       -----       -----       -----       -----       -----       -----       -----
<S>          <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
12.00%       2,280       2,370       2,460       2,550       2,640       2,730       2,820       2,910       2,970
12.25%       2,330       2,420       2,510       2,600       2,690       2,780       2,870       2,960       3,050
12.50%       2,380       2,470       2,560       2,650       2,740       2,830       2,920       3,010       3,100
12.75%       2,430       2,520       2,610       2,700       2,790       2,880       2,970       3,060       3,150
13.00%       2,490       2,580       2,670       2,760       2,850       2,940       3,030       3,120       3,210
13.25%       2,550       2,650       2,750       2,850       2,950       3,050       3,150       3,250       3,350
13.50%       2,610       2,710       2,810       2,910       3,010       3,110       3,210       3,310       3,410
13.75%       2,670       2,770       2,870       2,970       3,070       3,170       3,270       3,370       3,470
14.00%       2,730       2,830       2,930       3,030       3,130       3,230       3,330       3,430       3,530
14.25%       2,790       2,890       2,990       3,090       3,190       3,290       3,390       3,490       3,590
14.50%       2,850       2,960       3,070       3,180       3,290       3,400       3,510       3,620       3,730
14.75%       2,920       3,030       3,140       3,250       3,360       3,470       3,580       3,690       3,800
15.00%       2,990       3,100       3,210       3,320       3,430       3,540       3,650       3,760       3,870
15.25%       3,060       3,170       3,280       3,390       3,500       3,610       3,720       3,830       3,940
15.50%       3,130       3,250       3,370       3,490       3,610       3,730       3,850       3,970       4,090
15.75%       3,200       3,320       3,440       3,560       3,680       3,800       3,920       4,040       4,160
16.00%       3,270       3,390       3,510       3,630       3,750       3,870       3,990       4,110       4,230
16.25%       3,340       3,470       3,600       3,730       3,860       3,990       4,120       4,250       4,380
16.50%       3,420       3,550       3,680       3,810       3,940       4,070       4,200       4,330       4,460
16.75%       3,500       3,630       3,760       3,890       4,020       4,150       4,280       4,410       4,540
17.00%       3,580       3,710       3,840       3,970       4,100       4,230       4,360       4,490       4,620
17.25%       3,660       3,800       3,940       4,080       4,220       4,360       4,500       4,640       4,780
17.50%       3,740       3,880       4,020       4,160       4,300       4,440       4,580       4,720       4,860
17.75%       3,830       3,970       4,110       4,250       4,390       4,530       4,670       4,810       4,950
18.00%       3,920       4,070       4,220       4,370       4,520       4,670       4,820       4,970       5,120
18.25%       4,010       4,160       4,310       4,460       4,610       4,760       4,910       5,060       5,210
18.50%       4,100       4,250       4,400       4,550       4,700       4,850       5,000       5,150       5,300
18.75%       4,190       4,350       4,510       4,670       4,830       4,990       5,150       5,310       5,470
19.00%       4,290       4,450       4,610       4,770       4,930       5,090       5,250       5,410       5,570
19.25%       4,390       4,550       4,710       4,870       5,030       5,190       5,350       5,510       5,670
19.50%       4,490       4,660       4,830       5,000       5,170       5,340       5,510       5,680       5,850
19.75%       4,590       4,760       4,930       5,100       5,270       5,440       5,610       5,780       5,950
20.00%       4,690       4,870       5,050       5,230       5,410       5,590       5,770       5,950       6,130
20.25%       4,800       4,980       5,160       5,340       5,520       5,700       5,880       6,060       6,240
20.50%       4,910       5,090       5,270       5,450       5,630       5,810       5,990       6,170       6,350
20.75%       5,020       5,210       5,400       5,590       5,780       5,970       6,160       6,350       6,540
21.00%       5,130       5,320       5,510       5,700       5,890       6,080       6,270       6,460       6,650
21.25%       5,250       5,450       5,650       5,850       6,050       6,250       6,450       6,650       6,850
21.50%       5,370       5,570       5,770       5,970       6,170       6,370       6,570       6,770       6,970
21.75%       5,490       5,700       5,910       6,120       6,330       6,540       6,750       6,960       7,170
22.00%       5,620       5,830       6,040       6,250       6,460       6,670       6,880       7,090       7,300
</TABLE>

<PAGE>

PANHANDLE BANK
Long-Term Incentive Program

Executive - CEO

NUMBER OF SHARES

<TABLE>
<CAPTION>
                                                           Asset Growth
            ------------------------------------------------------------------------------------------------------------------
 ROE        58.0%       60.0%       62.0%       64.0%       66.0%       68.0%       70.0%       72.0%       74.0%       76.0%
-----      ------      ------      ------      ------      ------      ------      ------      ------      ------      ------
<S>        <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
12.00%      5,030       5,360       5,690       6,020       6,350       6,680       7,010       7,340       7,670       8,000
12.25%      5,120       5,460       5,800       6,140       6,480       6,820       7,160       7,500       7,840       8,180
12.50%      5,240       5,590       5,940       6,290       6,640       6,990       7,340       7,690       8,040       8,390
12.75%      5,360       5,720       6,080       6,440       6,800       7,160       7,520       7,880       8,240       8,600
13.00%      5,480       5,850       6,220       6,590       6,960       7,330       7,700       8,070       8,440       8,810
13.25%      5,610       5,980       6,350       6,720       7,090       7,460       7,830       8,200       8,570       8,940
13.50%      5,740       6,120       6,500       6,880       7,260       7,640       8,020       8,400       8,780       9,160
13.75%      5,870       6,260       6,650       7,040       7,430       7,820       8,210       8,600       8,990       9,380
14.00%      6,000       6,400       6,800       7,200       7,600       8,000       8,400       8,800       9,200       9,600
14.25%      6,140       6,550       6,960       7,370       7,780       8,190       8,600       9,010       9,420       9,830
14.50%      6,280       6,700       7,120       7,540       7,960       8,380       8,800       9,220       9,640      10,060
14.75%      6,420       6,850       7,280       7,710       8,140       8,570       9,000       9,430       9,860      10,290
15.00%      6,560       7,000       7,440       7,880       8,320       8,760       9,200       9,640      10,080      10,520
15.25%      6,710       7,160       7,610       8,060       8,510       8,960       9,410       9,860      10,310      10,760
15.50%      6,870       7,330       7,790       8,250       8,710       9,170       9,630      10,090      10,550      11,010
15.75%      7,030       7,500       7,970       8,440       8,910       9,380       9,850      10,320      10,790      11,260
16.00%      7,190       7,670       8,150       8,630       9,110       9,590      10,070      10,550      11,030      11,510
16.25%      7,350       7,840       8,330       8,820       9,310       9,800      10,290      10,780      11,270      11,760
16.50%      7,520       8,020       8,520       9,020       9,520      10,020      10,520      11,020      11,520      12,020
16.75%      7,690       8,200       8,710       9,220       9,730      10,240      10,750      11,260      11,770      12,280
17.00%      7,870       8,390       8,910       9,430       9,950      10,470      10,990      11,510      12,030      12,550
17.25%      8,050       8,590       9,130       9,670      10,210      10,750      11,290      11,830      12,370      12,910
17.50%      8,230       8,780       9,330       9,880      10,430      10,980      11,530      12,080      12,630      13,180
17.75%      8,420       8,980       9,540      10,100      10,660      11,220      11,780      12,340      12,900      13,460
18.00%      8,610       9,180       9,750      10,320      10,890      11,460      12,030      12,600      13,170      13,740
18.25%      8,810       9,400       9,990      10,580      11,170      11,760      12,350      12,940      13,530      14,120
18.50%      9,010       9,610      10,210      10,810      11,410      12,010      12,610      13,210      13,810      14,410
18.75%      9,220       9,830      10,440      11,050      11,660      12,270      12,880      13,490      14,100      14,710
19.00%      9,430      10,060      10,690      11,320      11,950      12,580      13,210      13,840      14,470      15,100
19.25%      9,640      10,280      10,920      11,560      12,200      12,840      13,480      14,120      14,760      15,400
19.50%      9,860      10,520      11,180      11,840      12,500      13,160      13,820      14,480      15,140      15,800
19.75%     10,090      10,760      11,430      12,100      12,770      13,440      14,110      14,780      15,450      16,120
20.00%     10,320      11,010      11,700      12,390      13,080      13,770      14,460      15,150      15,840      16,530
20.25%     10,550      11,250      11,950      12,650      13,350      14,050      14,750      15,450      16,150      16,850
20.50%     10,790      11,510      12,230      12,950      13,670      14,390      15,110      15,830      16,550      17,270
20.75%     11,040      11,780      12,520      13,260      14,000      14,740      15,480      16,220      16,960      17,700
21.00%     11,290      12,040      12,790      13,540      14,290      15,040      15,790      16,540      17,290      18,040
21.25%     11,550      12,320      13,090      13,860      14,630      15,400      16,170      16,940      17,710      18,480
21.50%     11,810      12,600      13,390      14,180      14,970      15,760      16,550      17,340      18,130      18,920
21.75%     12,080      12,890      13,700      14,510      15,320      16,130      16,940      17,750      18,560      19,370
22.00%     12,380      13,200      14,020      14,840      15,660      16,480      17,300      18,120      18,940      19,760

<CAPTION>
                                                     Asset Growth
          -------------------------------------------------------------------------------------------------------
 ROE        78.0%       80.0%       82.0%       84.0%       86.0%       88.0%       90.0%       92.0%       94.0%
-----     -------      ------      ------      ------      ------      ------      ------      ------      ------
<S>       <C>          <C>         <C>         <C>         <C>         <C>         <C>         <C>         <C>
12.00%      8,350       8,660       8,970       9,280       9,590       9,900      10,210      10,520      10,870
12.25%      8,540       8,860       9,180       9,500       9,820      10,140      10,460      10,780      11,100
12.50%      8,740       9,070       9,400       9,730      10,060      10,390      10,720      11,050      11,380
12.75%      8,940       9,280       9,620       9,960      10,300      10,640      10,980      11,320      11,660
13.00%      9,140       9,480       9,820      10,160      10,500      10,840      11,180      11,520      11,860
13.25%      9,350       9,700      10,050      10,400      10,750      11,100      11,450      11,800      12,150
13.50%      9,560       9,920      10,280      10,640      11,000      11,360      11,720      12,080      12,440
13.75%      9,780      10,150      10,520      10,890      11,260      11,630      12,000      12,370      12,740
14.00%     10,000      10,380      10,760      11,140      11,520      11,900      12,280      12,660      13,040
14.25%     10,230      10,610      10,990      11,370      11,750      12,130      12,510      12,890      13,270
14.50%     10,460      10,850      11,240      11,630      12,020      12,410      12,800      13,190      13,580
14.75%     10,700      11,100      11,500      11,900      12,300      12,700      13,100      13,500      13,900
15.00%     10,940      11,350      11,760      12,170      12,580      12,990      13,400      13,810      14,220
15.25%     11,190      11,610      12,030      12,450      12,870      13,290      13,710      14,130      14,550
15.50%     11,450      11,880      12,310      12,740      13,170      13,600      14,030      14,460      14,890
15.75%     11,710      12,150      12,590      13,030      13,470      13,910      14,350      14,790      15,230
16.00%     11,980      12,430      12,880      13,330      13,780      14,230      14,680      15,130      15,580
16.25%     12,250      12,710      13,170      13,630      14,090      14,550      15,010      15,470      15,930
16.50%     12,530      13,000      13,470      13,940      14,410      14,880      15,350      15,820      16,290
16.75%     12,820      13,300      13,780      14,260      14,740      15,220      15,700      16,180      16,660
17.00%     13,110      13,600      14,090      14,580      15,070      15,560      16,050      16,540      17,030
17.25%     13,410      13,910      14,410      14,910      15,410      15,910      16,410      16,910      17,410
17.50%     13,720      14,230      14,740      15,250      15,760      16,270      16,780      17,290      17,800
17.75%     14,030      14,560      15,090      15,620      16,150      16,680      17,210      17,740      18,270
18.00%     14,350      14,890      15,430      15,970      16,510      17,050      17,590      18,130      18,670
18.25%     14,680      15,230      15,780      16,330      16,880      17,430      17,980      18,530      19,080
18.50%     15,020      15,580      16,140      16,700      17,260      17,820      18,380      18,940      19,500
18.75%     15,360      15,940      16,520      17,100      17,680      18,260      18,840      19,420      20,000
19.00%     15,710      16,300      16,890      17,480      18,070      18,660      19,250      19,840      20,430
19.25%     16,070      16,670      17,270      17,870      18,470      19,070      19,670      20,270      20,870
19.50%     16,440      17,060      17,680      18,300      18,920      19,540      20,160      20,780      21,400
19.75%     16,820      17,450      18,080      18,710      19,340      19,970      20,600      21,230      21,860
20.00%     17,200      17,850      18,500      19,150      19,800      20,450      21,100      21,750      22,400
20.25%     17,590      18,250      18,910      19,570      20,230      20,890      21,550      22,210      22,870
20.50%     17,990      18,660      19,330      20,000      20,670      21,340      22,010      22,680      23,350
20.75%     18,400      19,090      19,780      20,470      21,160      21,850      22,540      23,230      23,920
21.00%     18,820      19,530      20,240      20,950      21,660      22,370      23,080      23,790      24,500
21.25%     19,250      19,970      20,690      21,410      22,130      22,850      23,570      24,290      25,010
21.50%     19,690      20,430      21,170      21,910      22,650      23,390      24,130      24,870      25,610
21.75%     20,140      20,900      21,660      22,420      23,180      23,940      24,700      25,460      26,220
22.00%     20,620      21,390      22,160      22,930      23,700      24,470      25,240      26,010      26,800
</TABLE><PAGE>

                                                                   EXHIBIT 10.13

                         EXECUTIVE EMPLOYMENT AGREEMENT

      This Amended and Restated EXECUTIVE EMPLOYMENT AGREEMENT ("Agreement") is
dated as of DECEMBER 17, 2003. The effective date of this Agreement is JANUARY
1, 2002 (the "Effective Date"). The parties to this Agreement ("Parties") are
INTERMOUNTAIN COMMUNITY BANCORP F/K/A PANHANDLE BANCORP, an Idaho corporation
("IMCB"), PANHANDLE STATE BANK, an Idaho state-chartered bank ("PSB") (IMCB and
PSB individually and collectively being "Employer") and CURT HECKER
("Executive").

                                    RECITALS

      A. Executive is employed by Employer in an executive management capacity,
presently holding the position of President and CEO of IMCB and CEO of PSB. The
Parties wish to continue Executive's employment in that capacity under the terms
and conditions of this Agreement.

      B. Executive previously entered into (i) an Executive Employment Agreement
with Employer dated as of January 1, 2002, and (ii) an Executive Severance
Agreement dated as of September 15, 1999, as amended, with Panhandle Bancorp
(the "Change in Control Agreement"), which provides for certain severance
payments to Executive in the event of a change in control of IMCB. Executive
also previously entered into a Tax Payment Bonus Plan dated as of December 1,
2000 with IMCB (the "Tax Bonus Agreement").

                                    AGREEMENT

1)    TERM OF AGREEMENT. The term of this employment agreement is three (3)
      years, commencing on the Effective Date (the "Term"). The agreement will
      automatically renew every three years unless cancelled by the Board of
      Directors within 60 days of the expiration of the term. Notwithstanding
      the preceding, if a definitive agreement providing for a Change in Control
      (defined below) is entered into (i) on or before the expiration of the
      Term or (ii) within twelve (12) months after Executive's involuntary
      termination other than for Cause, Disability, Retirement or death, then
      expiration of such Term shall be extended through the Severance Protection
      Period (defined below).

2)    EMPLOYMENT. Employer will continue Executive's employment during the Term,
      and Executive accepts employment by Employer on the terms and conditions
      set forth in this Agreement. Executive's title will be "President and
      Chief Executive Officer (CEO)" of IMCB and "CEO" of PSB.

3)    DUTIES OF EXECUTIVE. Executive will report directly to the Chairman of the
      Board of IMCB. Executive will be responsible for the following duties:

            a)    Development of and compliance with all bank policies.

            b)    Calls on the most important existing and potential corporate
                  customers.

<PAGE>

            c)    Supervision of bank's strategic plan in all aspects.

            d)    Expansion into new markets and recruitment of employees.

            e)    Serving on PSB committees including: Executive Management,
                  Senior Management, Senior Credit, Compliance, Risk Management,
                  Technology, and Human Resources.

            f)    Serving as commercial loan officer to a few most important
                  business customers.

            g)    Representing PSB at civic and community activities.

            h)    Supervising the President of PSB and ICB in the implementation
                  of an effective branch operations system.

            i)    Supervising the COO in the implementation of effective
                  information systems, human resource management, financial
                  plans and budgets.

            j)    Supervising the Credit Administrator in the implementation of
                  an effective lending operation.

            k)    Supervising the Executive Assistant in the preparation of
                  reports and completion of various administrative tasks.

4)    COMMITMENT OF EXECUTIVE. (a) Executive will faithfully and diligently
      perform the duties set forth in Section 3 and such other duties as may be
      assigned to Executive from time to time by IMCB's board of directors (the
      "Board"). Executive will use his best efforts to perform his duties and
      will devote full time and attention to these duties during working hours.
      Executive may engage in non-IMCB business activities with prior Board
      approval, which approval will not be unreasonably withheld.

      (b) In the event that any person extends any proposal or offer which is
      intended to or may result in a Change in Control, defined below (a "Change
      in Control Proposal"), Executive shall, at Employer's request, assist
      Employer in evaluating such proposal or offer. Further, as a condition to
      receipt of the Severance Payment (defined below), Executive agrees not to
      voluntarily resign (including resignation for Good Reason) Executive's
      position with Employer during any period from the receipt of a specific
      Change in Control Proposal up to the consummation or abandonment of the
      transaction contemplated by such Proposal.

5)    SALARY. Executive will receive an annual base salary of $180,000 to be
      paid in accordance with PSB's regular payroll schedule. The Executive
      Committee of the Board will review Executive's salary in connection with
      its performance review on an annual basis.

6)    OTHER COMPENSATION. Executive will participate in both the Long-Term
      Incentive Plan and Executive Incentive Plan administered by the Human
      Resource Committee.

            a) Executive is eligible to participate in PSB's 401K retirement
      plan with employer match of 50% of first 6% of salary contributed.

            b) Executive may receive stock options annually, based on
      performance evaluation at the discretion of the Board of Directors.

                                       2
<PAGE>

            c) Executive's Tax Bonus Agreement with IMCB shall not be affected
      by this Agreement, and Executive shall continue to receive payments in
      accordance with the terms of the Tax Bonus Agreement.

7)    SALARY CONTINUATION PLAN. In consideration of this agreement, IMCB has
      entered into a Salary Continuation Agreement with Executive, substantially
      in the form approved by IMCB's board of directors on October 22, 2003 (the
      "Salary Continuation Agreement").

8)    VACATION AND BENEFITS. Executive is eligible for four (4) weeks of paid
      vacation per year. Unused vacation time will not be carried over.
      Additional benefits include life insurance of $50,000 for Executive and
      $2,000 for Executive's spouse and $2,000 for each dependent, and
      miscellaneous firm-wide benefits such as free checking account, safe
      deposit box, no fee investments, etc. Executive shall also be entitled to
      use of a company automobile with gas card.

9)    TERMINATION AND SEVERANCE PROVISIONS. If, during the Term, either Employer
      or Executive terminates Executive's employment with Employer for any
      reason, and provided that such termination does not otherwise entitle
      Executive to receive a Severance Payment (as defined below) under Section
      10 of this Agreement, Executive will be entitled to receive a termination
      payment equal to two (2) times Executive's annual base salary the
      ("Termination Payment"). The Termination Payment shall be paid in one lump
      sum payment, payable upon the date that Executive's employment is
      terminated. Notwithstanding the preceding, in the event that a definitive
      agreement providing for a Change in Control (each as defined below) is
      entered into within twelve (12) months after Executive's involuntary
      termination other than for Cause, Disability, Retirement or death,
      Executive shall be entitled to receive the difference between the
      Severance Payment and the Termination Payment upon the effective date of
      the Change in Control.

10)   CHANGE IN CONTROL/SEVERANCE PAYMENT.

            a)    Payment Events. Subject to the requirements of Section 4(b) of
                  this Agreement, in the event of involuntary termination of
                  Executive's employment with Employer, other than for Cause,
                  Disability, Retirement, (each defined below) or death, or in
                  the event of voluntary termination for Good Reason (defined
                  below), (i) within the Severance Protection Period after a
                  Change in Control, or (ii) within twelve (12) months before a
                  definitive agreement providing for a Change in Control is
                  entered into, Employer will pay Executive a severance payment
                  in the amount determined pursuant to the next section
                  ("Severance Payment"), payable on the later of the date of
                  termination or the effective date of the Change in Control.
                  The "Severance Protection Period" shall be the period
                  beginning on the effective date of the Change of Control and
                  continuing thereafter for twenty-four (24) months.

            b)    Amount of Payment. The Severance Payment shall be an amount
                  equal to the Payment Multiple (defined below) multiplied by
                  one-twelfth of Executive's

                                       3
<PAGE>

                  compensation as reported on Executive's IRS Form W-2 for the
                  most recent calendar year less compensation payable to
                  Executive that was deferred or carried over from prior years.
                  In the event the Executive is not employed for a full calendar
                  year prior to the Change in Control, the Severance Payment
                  shall be an amount equal to the Payment Multiple multiplied by
                  one-twelfth of Executive's annual base salary. The "Payment
                  Multiple" shall be twenty-four (24). The Severance Payment
                  shall be reduced by an amount equal to any compensation which
                  would be reported on Executive's IRS Form W-2 for the period
                  following the Change in Control; provided, however, the
                  Severance Payment shall not be reduced by the amount of any
                  bonus or other compensation received in the period following
                  the Change in Control that is based on Executive's performance
                  during the period prior to the Change in Control.

11)   EXCISE TAX UNDER INTERNAL REVENUE CODE SECTIONS 280G AND 4999.

            a)    Partial Reimbursement of Excise Tax. If a Change in Control
                  occurs the Executive may become entitled to acceleration of
                  benefits under this Agreement or under any other plan or
                  agreement of or with PSB or IMCB, including accelerated
                  vesting of stock options and acceleration of benefits under
                  any other benefit, compensation, or incentive plan or
                  arrangement with PSB or IMCB (collectively, the "Total
                  Benefits"). If a Change in Control occurs, IMCB and PSB shall
                  cause the certified public accounting firm retained by IMCB as
                  of the date immediately before the Change in Control (the
                  "Accounting Firm") to calculate the Total Benefits and any
                  excise tax payable by the Executive under sections 280G and
                  4999 based upon the Total Benefits. If the Accounting Firm
                  determines that an excise tax is payable, at the same time PSB
                  pays the Change in Control benefit under Section 10 of this
                  Agreement PSB shall also pay to the Executive an amount in
                  cash equal to the excise tax calculated by the Accounting Firm
                  (the "Excise Tax"). The Executive acknowledges and agrees that
                  this Section 11 provides for partial reimbursement only of the
                  final excise tax that may be payable by him, and that
                  additional unreimbursed excise taxes may be payable by him
                  after taking into account the reimbursement payment provided
                  under this Section 11. The partial reimbursement of the excise
                  tax under this Section 11 shall be made in addition to the
                  amount set forth in Section 10.

            (b)   Calculating the Excise Tax. For purposes of determining
                  whether any of the Total Benefits will be subject to the
                  Excise Tax and for purposes of determining the amount of the
                  Excise Tax,

                  1) Determination of "Parachute Payments" Subject to the Excise
                  Tax: any other payments or benefits received or to be received
                  by the Executive in connection with a Change in Control or the
                  Executive's Termination of Employment (whether under the terms
                  of this Agreement or any other agreement, stock option plan or
                  any other benefit plan or arrangement with PSB or IMCB, any
                  person whose actions result in a Change in Control or any

                                       4
<PAGE>

                  person affiliated with PSB, IMCB, or such person) shall be
                  treated as "parachute payments" within the meaning of section
                  280G(b)(2) of the Internal Revenue Code, and all "excess
                  parachute payments" within the meaning of section 280G(b)(1)
                  shall be treated as subject to the Excise Tax, unless in the
                  opinion of the Accounting Firm such other payments or benefits
                  do not constitute (in whole or in part) parachute payments, or
                  such excess parachute payments represent (in whole or in part)
                  reasonable compensation for services actually rendered within
                  the meaning of section 280G(b)(4) of the Internal Revenue Code
                  in excess (as defined in section 280G(b)(3) of the Internal
                  Revenue Code), or are otherwise not subject to the Excise Tax,

                  2) Calculation of Benefits Subject to Excise Tax: the amount
                  of the Total Benefits that shall be treated as subject to the
                  Excise Tax shall be equal to the lesser of (a) the total
                  amount of the Total Benefits reduced by the amount of such
                  Total Benefits that in the opinion of the Accounting Firm are
                  not parachute payments, or (b) the amount of excess parachute
                  payments within the meaning of section 280G(b)(1) (after
                  applying clause (i), above), and

                  3) Value of Noncash Benefits and Deferred Payments: the value
                  of any noncash benefits or any deferred payment or benefit
                  shall be determined by the Accounting Firm in accordance with
                  the principles of sections 280G(d)(3) and (4) of the Internal
                  Revenue Code.

            (c)   Assumed Marginal Income Tax Rate. For purposes of determining
                  the amount of the partial Excise Tax reimbursement payment to
                  be made under this Section 11, the Executive shall be deemed
                  to pay federal income taxes at the highest marginal rate of
                  federal income taxation in the calendar year in which the
                  partial Excise Tax reimbursement under this Section 11 is to
                  be made and state and local income taxes at the highest
                  marginal rate of taxation in the state and locality of the
                  Executive's residence on the date of Termination of
                  Employment, net of the reduction in federal income taxes that
                  can be obtained from deduction of such state and local taxes
                  (calculated by assuming that any reduction under section 68 of
                  the Internal Revenue Code in the amount of itemized deductions
                  allowable to the Executive applies first to reduce the amount
                  of such state and local income taxes that would otherwise be
                  deductible by the Executive, and applicable federal FICA and
                  Medicare withholding taxes).

            (d)   Accounting Firm's Determinations Are Final and Binding. All
                  determinations made by the Accounting Firm under this Section
                  11 shall be final and binding on PSB, IMCB, and the Executive.
                  All determinations required to be made under this Section 11 -
                  including the assumptions used to calculate Total Benefits and
                  the Excise Tax - shall be made by the Accounting Firm, which
                  shall provide detailed supporting calculations both to PSB and
                  the Executive.

                                       5
<PAGE>

12)   DEFINITIONS

      a)    Cause. "Cause means any one or more of the following:

                  1)    Willful misfeasance or gross negligence in the
                        performance of Executive's duties;

                  2)    Conviction of a crime in connection with such duties; or

                  3)    Conduct demonstrably and significantly harmful to the
                        financial condition of the PSB and/or IMCB.

      c)    Change in Control. "Change in Control" shall mean any of the
            following:

                  1)    Merger. IMCB merges into or consolidates with another
                        corporation, or merges another corporation into IMCB,
                        and as a result less than 50% of the combined voting
                        power of the resulting corporation immediately after the
                        merger or consolidation is held by persons who were the
                        holders of IMCB's voting securities immediately before
                        the merger or consolidation;

                  2)    Acquisition of Significant Share Ownership. A report on
                        Schedule 13D or another form or schedule (other than
                        Schedule 13G) is filed or is required to be filed under
                        sections 13(d) or 14(d) of the Securities Exchange Act
                        of 1934, if the schedule discloses that the filing
                        person or persons acting in concert has or have become
                        the beneficial owner of 25% or more of a class of IMCB's
                        voting securities, or if IMCB does not then have equity
                        securities registered under section 12 of the Securities
                        Exchange Act of 1934 a person or group acting in concert
                        has or have become the beneficial owner of 25% or more
                        of a class of IMCB's voting securities, but this
                        paragraph (2) shall not apply to beneficial ownership of
                        voting shares of IMCB held in a fiduciary capacity by an
                        entity in which IMCB directly or indirectly beneficially
                        owns 50% or more of the outstanding voting securities;

                  3)    Change in Board Composition. During any period of two
                        consecutive years, individuals who constitute IMCB's
                        board of directors at the beginning of the two-year
                        period cease for any reason to constitute at least a
                        majority thereof; provided, however, that -- for
                        purposes of this paragraph (c) -- each director who is
                        first elected by the board (or first nominated by the
                        board for election by stockholders) by a vote of at
                        least two-thirds (2/3) of the directors who were
                        directors at the beginning of the period shall be deemed
                        to have been a director at the beginning of the two-year
                        period; or

                  4)    Sale of Assets. IMCB sells to a third party all or
                        substantially all of IMCB's assets. For this purpose,
                        sale of all or substantially all of IMCB's assets
                        includes sale of the shares or assets of the PSB alone.

      d)    Change in Control Proposal. "Change in Control Proposal" has the
            meaning assigned in Section 4(b) of this Agreement.

      e)    Disability. "Disability" means a physical or mental impairment which
            renders Executive incapable of substantially performing the
            essential functions of

                                       6
<PAGE>

            such Executive's position, and which is expected to continue
            rendering Executive so incapable for the reasonably foreseeable
            future, with or without reasonable accommodation.

      f)    Retirement. "Retirement" shall mean voluntary termination by
            Executive in accordance with PSB's retirement policies, including
            early retirement, if applicable to their salaried employees.

      g)    Good Reason. "Good Reason" shall mean any of the following:

                  1)    Substantial diminution of the Executive's duties
                        compared to the Executive's duties prior to the Change
                        in Control;

                  2)    Substantial diminution of the Executive's compensation
                        compared to the Executive's compensation prior to the
                        Change in Control;

                  3)    Significant relocation, where Significant means a change
                        of more than 60 miles (one way) in the Executive's
                        commute if the Executive does not agree to move.

13)   CONFIDENTIALITY. Executive will not, after signing this Agreement,
      including during and after its Term, use for his own purposes or disclose
      to any other person or entity any confidential information concerning
      Employer or its business operations or customers, unless (1) Employer
      consents to the use or disclosure of its confidential information, (2) the
      use or disclosure is consistent with Executive's duties under this
      Agreement, or (3) disclosure is required by law or court order.
      Confidential information includes, but is not limited to, financial
      information, customer lists, marketing strategies, and business plans.

14)   RETURN OF EMPLOYER PROPERTY. If and when Executive ceases, for any reason,
      to be employed by Employer, Executive must return to Employer all keys,
      pass cards, identification cards and any other property of Employer. At
      the same time, Executive also must return to Employer all originals and
      copies (whether in hard copy, electronic or other form) of any documents,
      notes, memoranda, designs, devices, diskettes, tapes, manuals, and
      specifications which constitute proprietary information or material of
      Employer. The obligations in this Section include the return of documents
      and other materials which may be in Executive's desk at work, in
      Executive's car or place of residence, or in any other location under
      Executive's control.

15)   NON-SOLICITATION. Executive shall not solicit or cause to be solicited for
      employment any employee of Employer for a period of two (2) years
      following Executive's termination; nor solicit or cause to be solicited
      the business and/or accounts of customers of Employer for a period of two
      years following Executive's termination. Executive's obligations under
      this Section 15 terminate immediately upon a Change in Control.

16)   NON-COMPETITION. Except as otherwise expressly provided in this Agreement,
      while Executive is employed by Employer and for two years following
      termination of

                                       7
<PAGE>

      Executive's employment for any reason, , Executive will not become
      involved with a Competing Business or serve, directly or indirectly, a
      Competing Business in any manner, including, without limitation, as a
      shareholder, member, partner, director, officer, manager, investor,
      organizer, "founder," employee, consultant, or agent; provided, however,
      that Executive may acquire and passively own an interest not exceeding 2%
      of the total equity interest in a Competing Business. Executive's
      obligations under this Section 16 terminate immediately upon a Change in
      Control. For purposes of this Agreement, the term "Competing Business"
      means any financial service institutions, including without limitation
      banks, insurance companies, leasing companies, mortgage companies, and
      brokerage firms that engage in business in the State of Idaho, or
      southeastern Oregon, or eastern Washington.

17)   ENFORCEMENT.

      a) Employer and Executive stipulate that, in light of all of the facts and
circumstances of the relationship between Executive and Employer, the agreements
referred to in Sections 15 and 16 (including without limitation their scope,
duration and geographic extent) are fair and reasonably necessary for the
protection of Employer's goodwill and other protectable interests. If a court of
competent jurisdiction should decline to enforce any of those covenants and
agreements, Executive and Employer request the court to reform these provisions
to restrict Executive's ability to compete with Employer to the maximum extent,
in time, scope of activities, and geography, the court finds enforceable.

      b) Executive acknowledges that Employer will suffer immediate and
irreparable harm that will not be compensable by damages alone, if Executive
repudiates or breaches any of the provisions of Sections 15 and 16 or threatens
or attempts to do so. For this reason, under these circumstances, Employer, in
addition to and without limitation of any other rights, remedies or damages
available to it at law or in equity, will be entitled to obtain temporary,
preliminary, and permanent injunctions in order to prevent or restrain the
breach, and Employer will not be required to post a bond as a condition for the
granting of this relief.

18) ADEQUATE CONSIDERATION. Executive specifically acknowledges the receipt of
adequate consideration, including without limitation the Termination Payment,
identified in Section 9, if due and owing, for the covenants contained in
Sections 15 and 16 and that Employer is entitled to require him to comply with
those Sections regardless of the reason(s) for Executive's separation of
employment with Employer. Sections 15 and 16 will survive termination of this
Agreement, but will expire no later than two years from the date of the
termination of employment or the maturity of this agreement, whichever is later.
Executive represents that if his employment is terminated, whether voluntarily
or involuntarily, Executive has experience and capabilities sufficient to enable
Executive to obtain employment in areas which do not violate this Agreement and
that Employer's enforcement of a remedy by way of injunction will not prevent
Executive from earning a livelihood.

                                       8
<PAGE>

19) ENTIRE AGREEMENT. This agreement constitutes the entire understanding
between the parties concerning its subject matter and supersedes all prior
agreements, including that certain employment agreement between Executive and
Employer effective January 1, 2002 and the Change in Control Agreement.
Accordingly, Executive specifically waives the terms of and all of Executive's
rights under any severance provisions of any employment and/or change-in-control
agreements, whether written or oral, previously entered into with PSB and/or
IMCB. Notwithstanding the preceding, the terms of this agreement are separate
from and do not supercede the terms of the Tax Bonus Agreement or the Salary
Continuation Agreement.

20)   MISCELLANEOUS PROVISIONS.

            a)    Choice of Law. This Agreement is made with reference to and is
                  intended to be construed in accordance with the laws of the
                  State of Idaho.

            b)    Arbitration. Any dispute, controversy or claim arising out of
                  or in connection with, or relating to, this Agreement or any
                  breach or alleged breach hereof, shall, upon the request of
                  any party involved, be submitted to, and settled by,
                  arbitration pursuant to the rules then in effect of the
                  American Arbitration Association (or under any other form of
                  arbitration mutually acceptable to the parties so involved).
                  Any award rendered shall be final and conclusive upon the
                  parties and a judgment thereon may be entered in the highest
                  court of the forum having jurisdiction. The arbitrator shall
                  render a written decision, naming the substantially prevailing
                  party in the action, and shall award such party all costs and
                  expenses incurred, including reasonable attorneys' fees.
                  Notwithstanding the foregoing, if Executive violates Sections
                  13 or 14, Employer will have the right to initiate the court
                  proceedings described in Section 15(b), in lieu of an
                  arbitration proceeding under this Section. Employer may
                  initiate these proceedings wherever appropriate within the
                  State of Idaho; but Executive will consent to venue and
                  jurisdiction in Bonner County, Idaho.

            c)    Attorney Fees. In the event of any breach of or default under
                  this Agreement which results in either party incurring
                  attorney or other fees, costs or expenses (including in
                  arbitration), the prevailing party shall be entitled to
                  recover from the non-prevailing party any and all such fees,
                  costs and expenses, including attorneys' fees.

            d)    Successors. This Agreement shall bind and inure to the benefit
                  of the Parties and each of their respective affiliates, legal
                  representatives, heirs, successors and assigns.

            e)    Amendment. This Agreement may be amended only in a writing
                  signed by the Parties.

                                       9
<PAGE>

            f)    Headings. The headings of sections of this Agreement have been
                  included for convenience of reference only. They shall not be
                  construed to modify or otherwise affect in any respect any of
                  the provisions of the Agreement.

            g)    Counsel Review. Executive acknowledges that he has had the
                  opportunity to consult with independent counsel with respect
                  to the negotiation, preparation, and execution of this
                  Agreement.

            h)    Severability. The provisions of this Agreement are severable.
                  The invalidity of any provision will not affect the validity
                  of other provisions of this Agreement.

EXECUTED by each of the Parties effective as of the date first stated above.

IMCB                                          EXECUTIVE
Intermountain Community Bancorp,              Curt Hecker
an Idaho Corporation                          President & CEO, Intermountain
                                              Community Bancorp
                                              CEO, Panhandle State Bank

/s/ John B. Parker                            /s/ Curt Hecker
------------------                            ------------------
John B. Parker                                Curt Hecker
Chairman of the Board                         Date: _______________
Date: ______________

PSB
Panhandle State Bank,
an Idaho State Chartered Bank

/s/ John B. Parker
---------------------
John B. Parker
Chairman of the Board
Date: ______________

                                       10
<PAGE>

                FIRST AMENDMENT OF EXECUTIVE EMPLOYMENT AGREEMENT

      This First Amendment of Executive Employment Agreement (the "Amendment")
is made and entered into as of March 24, 2004. The parties to this Amendment
(the "Parties") are INTERMOUNTAIN COMMUNITY BANCORP F/K/A PANHANDLE BANCORP, an
Idaho corporation ("IMCB"), PANHANDLE STATE BANK, an Idaho state-chartered bank
("PSB") (IMCB and PSB individually and collectively being "Employer") and CURT
HECKER ("Executive").

                                    RECITALS

      A. The Parties entered into an Executive Employment Agreement dated as of
December 17, 2003 and effective as of January 1, 2002 (the "Agreement"), which
Agreement governs the terms of Executive's employment with Employer.

      B. Among other things, the Agreement addresses the Severance Payment to be
received by Executive in the event of a Change in Control. The Agreement sets
forth a formula for determining the amount of the Severance Payment. Since the
Employment Agreement was executed, the Parties have determined that the formula
set forth in the Agreement does not accurately reflect the Parties' intent.

      C. In order to manifest the Parties' intent regarding the Severance
Payment, the Parties wish to amend the terms of the Agreement as set forth in
this Amendment. Unless otherwise defined in this Amendment, capitalized terms
used in this Amendment have the meanings assigned to them in the Agreement.

                               TERMS OF AMENDMENT

      In consideration of the foregoing, the Parties agree as follows:

      1. Section 10 of the Agreement is amended by deleting subsection (b) in
its entirety and inserting the following in its place:

            Amount of Payment. The Severance Payment shall be an amount equal to
      two (2) times the average of the total base compensation and short term
      bonus received by Executive for each of the two most recent calendar
      years.

      2. This Amendment may be executed in one or more counterparts, each of
      will be deemed an original, but all of which taken together will
      constitute one and the same document.

                                       1
<PAGE>

Dated as of March 24, 2004.

IMCB                                          EXECUTIVE
Intermountain Community Bancorp,              Curt Hecker
an Idaho Corporation                          President & CEO, Intermountain
                                              Community Bancorp
                                              CEO, Panhandle State Bank

/s/ John B. Parker                            /s/ Curt Hecker
---------------------                         ------------------
John B. Parker                                Curt Hecker
Chairman of the Board                         Date:_______________
Date: _________________

PSB
Panhandle State Bank,
an Idaho State Chartered Bank

/s/ John B. Parker
--------------------
John B. Parker
Chairman of the Board
Date: _______________

                                       2
<PAGE>

               SECOND AMENDMENT OF EXECUTIVE EMPLOYMENT AGREEMENT

      This SECOND AMENDMENT OF EXECUTIVE EMPLOYMENT AGREEMENT (this "Amendment")
is dated as of this 4th day of March, 2005 by and among Curt Hecker, President
and Chief Executive Officer (the "Executive") of Intermountain Community
Bancorp, Inc., an Idaho corporation ("Intermountain"), and Chief Executive
Officer of Panhandle State Bank, an Idaho bank and wholly owned subsidiary of
Intermountain (the "Bank").

      WHEREAS, the Executive, Intermountain, and the Bank entered into an
Executive Employment Agreement dated as of December 17, 2003 (as amended by the
First Amendment of Executive Employment Agreement dated as of March 24, 2004,
the "Executive Employment Agreement"), which agreement establishes the terms and
conditions of the Executive's employment with the Bank and Intermountain,

      WHEREAS, the parties desire now to amend certain provisions of the
Executive Employment Agreement, consistent with the terms of section 20(e) of
that agreement, and

      WHEREAS, the parties intend that the amendments of the Executive
Employment Agreement made by this Amendment shall become effective immediately,
and that the Executive Employment Agreement shall, as amended, remain in full
force and effect according to its terms.

      NOW THEREFORE, in consideration of these premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows.

      1. DELETION OF THE ARBITRATION CLAUSE AND LEGAL FEE CLAUSE IN SECTIONS
20(b) AND 20(c); REPLACEMENT WITH A NEW LEGAL FEE REIMBURSEMENT CLAUSE.
Paragraph (b) of section 20 of the Executive Employment Agreement, captioned
"Arbitration," and paragraph (c) of section 20, captioned "Attorney Fees," shall
be deleted in their entirety and replaced by a new paragraph (b), captioned
"Payment of Legal Fees." The deleted paragraphs (b) and (c) are as follows -

      b)    Arbitration. Any dispute, controversy or claim arising out of or in
            connection with, or relating to, this Agreement or any breach or
            alleged breach hereof, shall, upon the request of any party
            involved, be submitted to, and settled by, arbitration pursuant to
            the rules then in effect of the American Arbitration Association (or
            under any other form of arbitration mutually acceptable to the
            parties so involved). Any award rendered shall be final and
            conclusive upon the parties and a judgment thereon may be entered in
            the highest court of the forum having jurisdiction. The arbitrator
            shall render a written decision, naming the substantially prevailing
            party in the action, and shall award such party all costs and
            expenses incurred, including reasonable attorneys' fees.
            Notwithstanding the foregoing, if Executive violates Sections 13 or
            14, Employer will have the right to initiate the court proceedings
            described in Section 15(b), in lieu of an arbitration proceeding
            under this Section. Employer may initiate these proceedings wherever
            appropriate within the State of Idaho; but Executive will consent to
            venue and jurisdiction in Bonner County, Idaho.

<PAGE>

      c)    Attorney Fees. In the event of any breach of or default under this
            Agreement which results in either party incurring attorney or other
            fees, costs or expenses (including in arbitration), the prevailing
            party shall be entitled to recover from the non-prevailing party any
            and all such fees, costs and expenses, including attorneys' fees.

      The deleted paragraphs (b) and (c) of section 20 shall be replaced by new
paragraph (b), as follows -

      b)    Payment of Legal Fees. Employer is aware that after a Change in
            Control management could cause or attempt to cause Employer to
            refuse to comply with the obligations under this Agreement, or could
            institute or cause or attempt to cause Employer to institute
            litigation seeking to have this Agreement declared unenforceable, or
            could take or attempt to take other action to deny Executive the
            benefits intended under this Agreement. In these circumstances the
            purpose of this Agreement would be frustrated. It is Employer's
            intention that the Executive not be required to incur the expenses
            associated with the enforcement of his rights under this Agreement,
            whether by litigation or other legal action, because the cost and
            expense thereof would substantially detract from the benefits
            intended to be granted to the Executive hereunder. It is Employer's
            intention that the Executive not be forced to negotiate settlement
            of his rights under this Agreement under threat of incurring
            expenses. Accordingly, if after a Change in Control occurs it
            appears to the Executive that (a) Employer has failed to comply with
            any of its obligations under this Agreement, or (b) Employer or any
            other person has taken any action to declare this Agreement void or
            unenforceable, or instituted any litigation or other legal action
            designed to deny, diminish, or to recover from the Executive the
            benefits intended to be provided to the Executive hereunder,
            Employer irrevocably authorize the Executive from time to time to
            retain counsel of his choice, at Employer's expense as provided in
            this paragraph (b), to represent the Executive in connection with
            the initiation or defense of any litigation or other legal action,
            whether by or against Employer or any director, officer,
            stockholder, or other person affiliated with Employer, in any
            jurisdiction. Notwithstanding any existing or previous
            attorney-client relationship between Employer and any counsel chosen
            by the Executive under this paragraph (b), Employer irrevocably
            consents to the Executive entering into an attorney-client
            relationship with that counsel, and Employer and the Executive agree
            that a confidential relationship shall exist between the Executive
            and that counsel. The fees and expenses of counsel selected from
            time to time by the Executive as provided in this section shall be
            paid or reimbursed to the Executive by Employer on a regular,
            periodic basis upon presentation by the Executive of a statement or
            statements prepared by such counsel in accordance with such
            counsel's customary practices, up to a maximum aggregate amount of
            $500,000, whether suit be brought or not, and whether or not
            incurred in trial, bankruptcy, or appellate proceedings. Employer's
            obligation to pay the Executive's legal fees provided by this
            paragraph (b) operates separately from and in addition to any legal
            fee reimbursement obligation Employer may have with the Executive
            under any separate severance, employment, salary continuation, or
            other agreement. Anything in this paragraph (b) to the contrary
            notwithstanding however, Employer shall not be required to pay or
            reimburse the Executive's legal expenses if doing so would violate
            section 18(k) of the Federal Deposit Insurance Act [12 U.S.C.
            1828(k)] and Rule 359.3 of the Federal Deposit Insurance Corporation
            [12 CFR 359.3].

      Paragraphs (d) through (h) of section 20 of the Executive Employment
Agreement shall remain in full force and effect, except that they shall be
redesignated paragraphs (c) through (g).

<PAGE>

      2. COUNTERPARTS. This Amendment may be executed in one or more
counterparts, each of will be deemed an original, but all of which taken
together will constitute one and the same document.

      IN WITNESS WHEREOF, this Second Amendment of Executive Employment
Agreement has been executed by Curt Hecker, Intermountain Community Bancorp,
Inc., and Panhandle State Bank as of the date first written above.

EXECUTIVE                                  PANHANDLE STATE BANK

/s/ /Curt Hecker                           By:  John B. Parker
----------------                                --------------------------
Curt Hecker                                     John B. Parker
                                           Its: Chairman of the Board

                                           INTERMOUNTAIN COMMUNITY BANCORP, INC.

                                           By:  John B. Parker
                                                --------------------------
                                                John B. Parker
                                           Its: Chairman of the Board

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